Pro
EigenLayer - The Point to the Points
Key Insights
- EigenLayer is perhaps the most highly anticipated launch of 2024. With the opportunity it presents and a points-based incentive program, it has lured ETH capital worth $1.8 billion.
- While points have been untradable, with some DeFi trickery, users have managed to strip the airdrop value from their restaked ETH. This airdrop value represents a very significant fixed APY of 30%.
- However, a greater opportunity may be available to those willing to sell this high APY to efficiently farm the EigenLayer airdrop.
EigenLayer is one of the most exciting upcoming launches for 2024. It is a restaking primitive that allows ETH validators to secure protocols beyond just the Ethereum blockchain. The protocols that utilize EigenLayer and ETH's security are called Actively Validated Services or AVS. Some planned AVSs are data availability layers, decentralized sequencers, oracles, and bridges.
EigenLayer promises to be a win-win-win for its ecosystem participants.
- AVSs can quickly bootstrap significant economic security from a large pool of validators at a lower cost than if they set up their own chain.
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Kunal previously worked in equity research and now considers himself a financial analyst in crypto. He specializes in valuation and bottom-up analysis for Layer-1 and DeFi protocols because he has yet to learn of a way to value NFTs.
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