EigenLayer

EigenLayer is a restaking protocol built on Ethereum that allows users who have staked ETH to secure the Beacon Chain to also use that same staked capital to secure other software modules, known as Actively Validated Services (AVS). This mechanism, called restaking, creates a new cryptoeconomic security marketplace where AVS operators can bootstrap trust by leveraging Ethereum's established validator set and its substantial economic stake, rather than building their own security from scratch. The protocol is governed by the EigenLayer DAO and its native EIGEN token, which is used for intersubjective forking to slash malicious behavior that cannot be objectively proven on-chain.

The core innovation is the separation of consensus (provided by Ethereum) from execution and validation (provided by AVSs). An AVS can be any system requiring distributed validation, such as a new blockchain, a data availability layer, a decentralized sequencer, or a bridge oracle network. By opting into an AVS, a restaker's Ethereum validator runs additional software and assumes slashing risks specific to that service. If the validator misbehaves according to the AVS's rules, a portion of their restaked ETH can be forfeited. This creates a powerful, reusable security layer that is more capital-efficient than isolated networks.

The protocol's architecture involves several key roles: the restakers (who delegate their staked ETH), the operators (who run the node software for AVSs), and the AVS developers (who build the services). Restakers can choose which operators and AVSs to delegate to, creating a permissionless marketplace for cryptoeconomic security. This model allows new projects to launch with robust security more quickly and at a lower cost, as they effectively rent security from Ethereum's validator base instead of conducting their own token sale and bootstrapping a new staking ecosystem.

EigenLayer's introduction of intersubjective slashing via the EIGEN token addresses a key limitation in blockchain security. While objective slashing punishes provable on-chain faults (like double-signing), intersubjective slashing is designed for faults that are obvious to a network's participants but not automatically verifiable by a smart contract, such as withholding data in a data availability committee. The DAO can vote to slash malicious actors in these scenarios, with the EIGEN token serving as the staking and governance asset for this social consensus layer, complementing the objective security of restaked ETH.

At its core, EigenLayer is a restaking protocol built on Ethereum. It allows users who have already staked ETH to secure the Ethereum Beacon Chain—via a liquid staking token (LST) like stETH or by running their own validator—to restake those assets. This involves opt-in cryptoeconomic slashing, where the user's staked ETH is placed at risk to provide security (or "cryptoeconomic trust") for other applications, known as Actively Validated Services (AVSs). This creates a pooled security marketplace where AVSs can bootstrap their networks without needing to bootstrap their own token and validator set from scratch.

The protocol's architecture is built around three primary roles: the restaker, the AVS, and the operator. A restaker deposits their staked ETH into EigenLayer smart contracts, delegating it to an operator of their choice. The operator is a node operator who runs the necessary software to validate for one or more AVSs. The AVS is any distributed system that requires its own distributed validation semantics, such as a new blockchain, data availability layer, oracle network, or bridge. By delegating to an operator supporting an AVS, the restaker's capital backs that service's security.

The security model is enforced through a slashing mechanism managed by each AVS. If an operator misbehaves (e.g., signs contradictory data or goes offline), the AVS can submit a slashing proof to EigenLayer's Slashing Manager. This triggers a reduction, or "slash," of the restaked ETH delegated to that faulty operator, penalizing misalignment. This shared slashing risk creates a powerful, reusable trust layer. The protocol's design separates validation logic (defined by the AVS) from settlement and slashing enforcement (managed by EigenLayer on Ethereum).

EigenLayer's innovation lies in solving the bootstrapping problem for new cryptoeconomic systems. Traditionally, launching a new proof-of-stake chain requires attracting substantial capital to secure its network, which is highly competitive. By leveraging Ethereum's established and deeply staked capital, AVSs can rent security from the existing pool. This allows developers to focus on innovation in their core protocol (consensus, execution, etc.) while outsourcing the costly and complex process of validator coordination and cryptoeconomic security to a shared base layer.

The protocol's impact extends to the broader Ethereum ecosystem by increasing the capital efficiency of staked ETH and creating new yield opportunities for stakers. However, it also introduces new risk vectors, primarily correlated slashing risk, where a single operator failure or a bug in an AVS's slashing logic could impact multiple services and their associated restaked capital. The system's long-term resilience depends on the careful design of slashing conditions, operator diversification, and the maturity of the AVS ecosystem built atop it.

In EigenLayer, slashing is the primary mechanism for enforcing validator compliance with the operational rules, or cryptoeconomic security, of actively validated services (AVSs). When a restaker's delegated stake is slashed, a portion of their restaked assets (in ETH or LSTs) is irrevocably burned as a penalty for provably malicious or negligent behavior, such as double-signing or prolonged downtime. This penalty directly reduces the attacker's economic stake, making attacks costly and aligning the restaker's financial incentives with the honest operation of the AVSs they secure. The specific conditions and severity of slashing are defined by each AVS in its slashing contract.

The security model is multi-layered, involving the EigenLayer core contracts on Ethereum for base slashing and individual AVS slashing managers. A critical consideration is correlated slashing risk, where a single fault by a node operator could trigger slashing events across multiple AVSs simultaneously, potentially leading to a cascading loss of a significant portion of a restaker's capital. To mitigate this, restakers must carefully assess the slashing conditions and overall security posture of each AVS they opt into, as well as the performance history of their chosen node operators. Tools for slashing risk analysis and operator reputation systems are emerging to help participants navigate these complex trade-offs.

Final responsibility for slashing lies with the EigenLayer Service Manager, which processes slashing proposals from AVSs. A key innovation is the introduction of an intervention window and a guardian network. Before slashing is executed, there is a delay period during which a decentralized committee of guardians can vote to intervene if they believe a slashing proposal is unjust. This adds a layer of social consensus and protection against potentially malicious or buggy slashing logic within an AVS, ensuring slashing is a last resort for clear, verifiable faults.