Restaking redefined for Ethereum security
EigenLayer (EIGEN) powers EigenLayer, an innovative protocol that introduces the concept of restaking on Ethereum. By allowing staked ETH to be reused to secure additional services, EigenLayer enhances network security while creating new earning opportunities. This novel approach has positioned EigenLayer as one of the most discussed developments in the Ethereum ecosystem. Now, you can buy and sell EIGEN directly on Bitso.
What is EigenLayer (EIGEN)?
EigenLayer is a permissionless restaking protocol built on Ethereum. It lets validators and ETH stakers repurpose their staked ETH to secure various Actively Validated Services (AVSs), such as data availability layers, oracles, and other middleware solutions. This creates a shared security model where services leverage Ethereum’s trust while stakers earn additional rewards.
The EIGEN token is central to this ecosystem, acting as both a governance and security asset.
What makes EIGEN unique?
EIGEN introduces intersubjective forking, a mechanism to resolve disputes through community consensus rather than strict on-chain rules. This flexible security model allows EigenLayer to address subjective faults and penalize malicious actors effectively. Additionally, EIGEN incentivizes participants by aligning rewards with honest behavior, making it a cornerstone of Ethereum’s evolving security landscape.
A closer look at the founders
EigenLayer was founded by Sreeram Kannan, a former associate professor at the University of Washington specializing in blockchain and distributed systems. His academic background and research in decentralized networks underpin EigenLayer’s design, making it one of the most academically grounded protocols in the industry.
What is the EIGEN token for?
EIGEN serves multiple roles in EigenLayer’s ecosystem:
- Security Collateral: AVSs stake EIGEN as a bond to guarantee honest operations, subject to slashing if rules are violated.
- Governance: Holders participate in decision-making regarding protocol upgrades, parameters, and slashing policies.
- Ecosystem Incentives: EIGEN aligns stakers, AVSs, and the community by rewarding positive contributions and securing services.
Real-world example
Carlos stakes his ETH through EigenLayer and opts to restake it to secure a new data availability service. By doing so, he not only earns traditional staking rewards but also additional incentives tied to the service, increasing his yield while contributing to network security.
How to buy EIGEN on Bitso
- Log in or sign up for your Bitso account.
- Use the conversion feature to swap your local currency (MXN, ARS, BRL, COP, or USD) for EIGEN.
- Track its market performance directly from the app.
- Enter the amount, review the details, and confirm your transaction.
Note: EIGEN is only available through conversions on Bitso. It is not supported on Bitso Alpha, and deposits or withdrawals from external wallets are disabled. However, you can send and receive EIGEN between Bitso users via Bitso Transfer.
Disclaimer
EigenLayer (EIGEN) is the native governance and security token of the EigenLayer restaking protocol. It enables participants to secure additional services, earn rewards, and shape the future of the protocol through governance. While EigenLayer introduces innovative security mechanisms, EIGEN remains a speculative asset subject to high market volatility. This article is for informational purposes only and does not constitute financial advice. Bitso encourages all users to conduct their own research (DYOR) before buying, selling, or holding any digital asset.
