Original title: "LSD did not fully understand, and the narrative of "re-pledging" came"
Original author: chengshutong, SevenUp DAO
Eigenlayer is a new narrative that can last at least 24 years. As a major innovation focusing on ETH's "shared security", the re-pledging scheme of LSD liquidity Token proposed by it has multiple narrative logic blessings. Many institutions will review it in the 22nd year. It is placed in an important position:
1. ETH consensus layer expansion
2. Revitalize LSD assets, Lego will go to the next level, three-tier income
3. The value capture of real income is an important driving force for the next bull market of ETH ecology.
4. LSD midstream Red Sea (volume) + stock (0.5 B$), should pay more attention to upstream DVT, downstream aggregator, lsdETH re-pledging plan
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1. Project introduction:
The re-staking (Re-staking) scheme proposed by Eigenlayer allows users to pledge ETH, lsdETH and LP Token on other public chains, oracles, middleware, etc., as nodes and get verification rewards, so that third-party projects can borrow ETH mainnet The security of the ETH consensus layer is released.
Node network security comes from three aspects: asset value, attack cost, and number of nodes. The security of the consensus layer of the ETH network is guaranteed by the "potential confiscation risk" of pledged funds, which is what we often call violent means to maintain security.
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Modular Narrative: An Exploration of New Directions in the Consensus Layer
The module hierarchy of blockchain can be divided into four parts:
Consensus Layer (Consensus Layer) solves security and trust, determines the order of transactions, validity, and consistency between nodes Data Availability Layer (Data Availability Layer) stores and verifies data, that is, ensures that transaction data can be Use the settlement layer (Settlement Layer): to ensure the correctness of instruction execution, and settle the state commitment Execution Layer (Execution Layer): calculate the state transition
Consensus layer modular narrative: In fact, Eigenlayer is also doing modular things, just doing the opposite, avoiding the defects of the execution layer or data availability layer, and not trying to improve L1 or L2 (too cumbersome! ), but make full use of the biggest advantage of Ethereum - security, increase the scalability of the consensus layer of Ethereum, and at the same time allow the verification nodes of the consensus layer to obtain more benefits and connect with more project parties.
Relying on the Ethereum trust layer network (or Ethereum's huge pledge capital), build a verification platform and a pledge platform, and provide infrastructure/middleware service providers with a way to build consensus trust, so that project parties connected to Eigenlayer can Inherit the security of Ethereum.
From two aspects, one is to increase the cost of attacking and doing evil (compared with pledged native Token, which has stronger value stability), and the penalty cost is more deterrent; the other is the credibility of the node itself, Ethereum pledgers are more mature, I am more inclined not to "greed for small profits". Of course, it also needs to see whether it can get the support of many Ethereum verification nodes, otherwise it will be difficult to inherit the security of the main network.
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Lower the threshold for project parties
For new project parties, whether it is Layer-1, oracle network, or cross-chain projects, they must establish their own security foundation, or what EigenLayer calls a "trust layer." For example, Bitcoin's security and trust layer comes from proof-of-work (PoW) mining, which ensures the authenticity of data.
Many project parties need to build verification nodes from 0. To put it bluntly, projects that need to ensure information and capital security require verification nodes. For example, cross-chain bridges require committees to manage private keys, and oracle nodes need to pledge a large amount of funds to make trust assumptions. Guarantee the authenticity and credibility of data transmission and price feed.
The trust between blockchains and DAPPs is separated from each other, and each maintains ecological trust to pay high capital costs. Building nodes is the biggest barrier for many project parties to enter the blockchain, similar to an arms race. Many project parties Constantly delaying the launch means that there is a problem with the construction of the main network. The Ethereum beacon chain now has more than 13 million ETH pledged. If the huge volume can be used as a trust layer for another project party in a way, it can greatly reduce the operating cost of a new project party. Focus more on core functionality and user experience.
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Relaying the LSD track, the staking and income flywheel will take it to a higher level
Eigenlayer can be used as a continuation of the LSD narrative. Although the upgrade of Shanghai will bring about an increase in the total pledged amount of ETH, it cannot be avoided that this is a stock market. 1500 (ETH daily output) 3651 W$ (assuming ETH price) * 0.1 ( LSD track revenue sharing) = 0.5 B$, Red Sea (volume) + stock (0.5 B$), more attention should be paid to its upstream and downstream tracks, upstream DVT, downstream aggregators, and lsdETH re-pledging plan.
LSD assets, Lego is a higher level, and the value capture of real income. If the pledge rate of the ETH main network reaches 50%, it is expected that the overall DeFi lock-up volume U standard will expand by 1 0X. lsdETH acts as a loan asset > transaction asset in DeFi, and its The upper limit of leveraged income is also limited, and the rate of return will gradually decrease with the scale of TVL, so external income is needed to support such a large amount of locked positions.
Trinity Earnings Boost
Through the re-pledging scheme proposed by Eigenlayer, in addition to capturing income in the Ethereum system, liquidity tokens can also obtain income from other cross-chain bridges, oracle machines, etc. If the LP pledge of lsdETH is launched later, the trinity of income can be achieved.
Staking Ethereum Earnings
Token rewards for node construction and verification of cooperative project parties
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3. The nodes are all done, of course the DA layer needs to be rubbed
EigenLayer started internal testnet testing in April last year, participated in the Ethereum DevConnect developer conference roadshow and ZK summit roadshow in May, and recently participated in the Bogota Hackathon. The opportunity to show up also attracted many VCs to this project. Messari recommended this project project.
EigenLayer could be a competitor to Celestia. One of EigenLayer's flagship products is a data availability module.
Compared with Celestia, EigenDA has the advantage that it does not need to build main network nodes by itself. Ei is doing this. It attracts verification nodes on Ethereum main network to Ei to do parallel verification of multiple projects in an incentive way;
From the perspective of legitimacy, the good consensus of Ethereum nodes is integrated, and the nodes and security of Ethereum are only "borrowed" rather than replaced. At the same time, because nodes undertake verification channels in different projects, their responsibilities And the potential "confiscation income" of doing evil is greater. From this point of view, it can increase the credibility of the node, and in the future, it can also increase the security of Ethereum from the side. After adding the Da layer, the node income may be expanded again ? Fully motivating Ei can have a synergistic effect with Ethereum.
Also, unlike Celestia, EigenDA is not a consensus layer, so its cost will be lower and throughput will be higher.
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4. Security issues
1. With an additional trust layer, hacker attacks are indispensable
2. The value capture of Ethereum increases, and the value capture ability of cooperative projects decreases
3. The sovereignty of the project party is lost, and the consensus layer is directly "outsourced"
4. Centralization risk, but the founder explained that Ethereum is only indirectly pledged on Eigenlayer and directly pledged on various projects
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