In an effort to boost the levels of incentives offered to Ethereum Validators, EigenLayer has been launched on the testnet. This can be defined as a new protocol that would enable Ethereum users to re-stake any of their assets onto different emerging technologies. Further defined as a decentralized marketplace for both validators and node operators, EigenLayer would also empower them to earn additional revenue through supplementary services.
However, despite the mainnet launch of EigenLayer being scheduled in Q3 this year, the protocol would be subject to a three-phase testing process to integrate different ecosystem participants. At the same time, the aim of the three-phase testing is to offer users a seamless and trouble-free experience.
3-Phase Testing of EigenLayer
The first stage – stakers, would revolve around onboarding the stakers into re-staking on EigenLayer. Furthermore, the second stage – operators, includes onboarding the operators and them receiving delegations from the re-stakers. Finally, stage three – services, would consist of bringing the first actively validated services on EigenLayer.
The platform stated,
“While this testnet is mainly intended for stakers, others can learn about EigenLayer and the structure of the codebase. Support for operators and builders will be added in the next phases. In addition, the community can start engaging in stewarding protocol and code design.”
However, the protocol has received a decent amount of financial support because of its vast potential. The project managed to secure funding of approximately $50 million in Series A funding in late March. The current launch of the protocol’s Stage 1 testnet has been crafted on the Ethereum Goerli network. Currently, active development is being carried out, and improvements would be made over time.
What does the platform offer?
EigenLayer is set to offer Ethereum validators a chance to re-utilize all assets they received by staking Ether on different platforms including Lido, RocketPool, etc. In this way, they can validate and secure additional networks. Moreover, these also include a number of additional sidechains, as well as non-EVM blockchains.
Eigen further stated,
“Note that this is an early testnet, with code undergoing active development, and audits to be completed soon. We expect to make improvements in advance of mainnet, and hope you’ll contribute your feedback, comments, and ideas to help us do so!”
Some people also believe that EigenLayer is also exploring the possibility of enabling the staking of ETH withdrawn from the Beacon chain after the Shapella upgrade. However, such a move would include setting up a validator’s withdrawal credentials to the EigenLayer smart contracts, followed by opting into new modules on the protocol.
As stated by EigenLayer, it is evident that the Stage 1 testnet is meant purely for stakers and a number of other participants including operators and developers. The testnet also offers teams building staking functionality, coupled with the possibility of understanding multiple ways to integrate EigenLayer into other protocols. As the testnet phase of the protocol continues to unfold, the crypto community anticipates its potential to reshape the Ethereum validator incentives and broader implications.