EigenLayer's EigenDA to Enable Layer-2 Native Token Restaking

2 min read | August 27, 2024 05:56 PM AEST | By Team Kalkine Media

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EigenLayer's EigenDA to Enable Layer-2 Native Token Restaking — Image source: shutterstock

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EigenDA, a data availability protocol from EigenLayer, has expanded its capabilities to support native token restaking for layer-2 scaling networks. This update, announced on August 26, introduces the ability for users to restake layer-2 tokens in addition to Ether (ETH) and EigenLayer's native EIGEN token.

Restaking allows users to take tokens that have already been staked—posted as collateral with a validator in exchange for rewards—and use them to secure additional protocols. This process is designed to enhance security for rollup networks while providing token holders with additional yield. EigenDA’s new feature enables teams to restake ERC-20 tokens, thereby creating custom quorum mechanisms to secure their rollups. This advancement aims to bolster security for rollup users and generate yield for token holders.

EigenDA functions as a data availability layer on EigenLayer’s {Ethereum} (ETH) restaking platform. It addresses the challenge of storing and accessing on-chain data for Ethereum’s layer-2 scaling solutions, aiming to make data availability both reliable and scalable. The issue of storing and accessing transaction data has been a significant obstacle for layer-2 chainz. Ethereum's Dencun upgrade in March introduced temporary off-chain data stores called "blobs" to mitigate this issue, while other protocols like Celestia offer alternative solutions.

EigenDA was the first actively validated service (AVS) on EigenLayer and remains its largest. It is secured by approximately 3.6 million restaked ETH and 71.5 million EIGEN tokens contributed by over 128,000 stakers. With the introduction of native token restaking, EigenDA now supports the creation of custom consensus mechanisms, or "quorums," for secure data management.

The protocol's expansion means that as more ERC-20 tokens are added to EigenDA, users will have the option to support staking of these tokens, similar to how ETH and EIGEN tokens are currently utilized. This development is expected to enhance the flexibility and efficiency of data availability solutions within the Ethereum ecosystem.

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