TL;DR
- EigenLayer Introduces Permissionless Token Support: Eigen Labs announced a new feature allowing Actively Validated Services (AVSs) on EigenLayer to add ERC-20 tokens as restakable assets permissionless, enhancing DeFi capabilities.
- Mainnet Deployment and User Interface Update: The feature is currently in a permissioned testing phase and will be deployed on the mainnet next week. User interface support for restakers is expected later in Q3 2024.
- Enhanced Crypto-Economic Security and Collaboration with Fhenix: The new feature broadens the scope of assets for crypto-economic security, including AVS-native tokens and stablecoins.
On August 14, Eigen Labs announced the introduction of Permissionless Token Support on EigenLayer. This new feature will enable Actively Validated Services (AVSs) on EigenLayer to add ERC-20 tokens as restakable assets permissionless. The announcement marks a significant step forward in the DeFi space.
Coming Soon: Permissionless Token Support
What
Eigen Labs is proud to introduce Permissionless Token Support, an upcoming update, to the EigenLayer protocol. This feature will enable any ERC-20 token to be added as a restakable asset, significantly broadening the scope of… pic.twitter.com/zvN30f9Ipc
— EigenLayer (@eigenlayer) August 14, 2024
Currently, the feature is in a permissioned testing phase on the testnet. EigenDA will be the first AVS to test this feature before it goes live. Eigen Labs revealed that the feature would be deployed on the mainnet in the coming week as a protocol-layer update.
Additionally, user interface support for restakers is expected to be introduced later in Q3 of this year. EigenLayer, launched on Ethereum’s mainnet on April 9, has already seen users deposit around $15 billion ahead of its launch.
Enhancing Crypto-Economic Security
The Eigen team disclosed that Permissionless Token Support would broaden the scope of assets AVSs can utilize for crypto-economic security. This feature will unlock the crypto-economic security of multiple assets on the protocol, including AVS-native tokens, BTC-denominated coins, and stablecoins.
By using native tokens for security, these tokens will gain new utility and security functionality. AVS protocols can also use the tokens to reward users and operators, further customizing their security profiles.
Implementation of ERC-20 Token Restaking
EigenLayer detailed the process by which its protocol will enable the restaking of ERC-20 tokens within its ecosystem. Through a factory contract, AVSs can develop new strategies for any ERC-20 token.
Strategies are smart contracts on the Eigen protocol that determine which tokens restakers and operators can restake. AVSs can then place the tokens in quorums to utilize them for crypto-economic security and distribute tasks to operators.
EigenLayer Collaboration with Fhenix
EigenLayer has also collaborated with Fhenix to improve Ethereum’s security and privacy. The two companies plan to develop fully homomorphic encryption (FHE) coprocessors, enhancing Ethereum’s on-chain computational efficiency.
Fhenix affirmed that FHE coprocessors can process more encrypted data without decrypting it, benefiting multiple industries by allowing developers to create applications without exposing sensitive data. The partnership will enable Fhenix to leverage EigenLayer’s crypto-economic security structure to improve Ethereum’s security.
EigenLayer’s introduction of Permissionless Token Support is set to transform the DeFi landscape by enhancing the crypto-economic security of AVSs and broadening the scope of assets they can utilize. With the upcoming mainnet deployment and collaboration with Fhenix, EigenLayer continues to push the boundaries of blockchain technology and security.
