The EigenLayer mainnet launch allows reinvestors to delegate their stake and aims to expand Ethereum security.

EigenLayer has officially launched on mainnet, marking a milestone for its collective rebuild and broader cryptocurrency landscape. The launch, which took place on April 9, allows reinvestors to delegate to operators of their choice, who then run actively verified services. Restake allows ETH stakers to choose and extend Ethereum’s security to additional applications without the need for a separate validator network, as explained in the project blog.

The protocol, which has attracted billions of dollars worth of customer deposits and has a total value locked (TVL) exceeding $14 billion, aims to foster more agile, decentralized, and permissionless innovation on Ethereum. By supporting a variety of projects, including data availability services such as EigenDA, an interoperability layer, and a modular execution layer, EigenLayer seeks to lower the barrier to entry for new blockchain projects and enhance the security of existing projects.

However, the mainnet launch has some limitations as important components such as intra-protocol payments and slashing mechanisms from AVS to operators are scheduled to be introduced later this year. This phased approach aims to allow the EigenLayer market to develop and stabilize before implementing these features.

This launch follows a multi-step strategy that ensures a smooth transition and prioritizes security and performance. The first step, completed with mainnet rebuild, leads to operator mainnet introduction and AVS deployment. This gradual rollout aims to minimize risk, optimize network performance, and ensure a stable and scalable network for all participants.

EigenLayer’s re-staking approach has received significant interest and investment from top funds, raising over $64.5 million from Coinbase Ventures and Polychain Capital. The project’s partnerships with leading technology companies and foundations further highlight its potential to disrupt the Ethereum ecosystem.

However, not everyone in the community is completely convinced of EigenLayer’s potential to benefit the Ethereum ecosystem. Critics have raised concerns about reducing the risk that validators may face significant asset losses due to non-compliance with contract rules. There are also concerns about yield risk, which could undermine the security of Ethereum by pursuing higher rewards. Risks of centralization and collusion have been pointed out, with concerns that centralized coordination of Liquid Stake Tokens (LSTs) could lead to governance issues and potential security breaches.

Additionally, the complexity of re-staking could make the system more vulnerable, and Ethereum co-founder Vitalik Buterin expressed concern about the impact on Ethereum’s fundamental security principles. There are also concerns that re-staking could lead to a Ponzi scheme if the model proves to be unsustainable, highlighting the need for a cautious approach and robust risk mitigation strategies.

As the launch continues, speculation remains high about a potential token launch or airdrop, but no details have been confirmed. Whether re-staking benefits or harms Ethereum is set to have significant implications for the future of Ethereum and the wider cryptocurrency landscape as the protocol continues to develop and attract more projects.