Delegating Your Restaked ETH on EigenLayer

EigenLayer is on everyone's minds this week due to announcements around the much-hyped token launch. But amid all of the EIGEN talk, let's take a look at how to get started putting your restaked ETH to work!

In the EigenLayer ecosystem, an Actively Validated Service (AVS) is a project that uses the security of Ethereum via EigenLayer to underpin its native functionalities.  

AVSs can be anything from data availability solutions to L2s, like optimistic or zk-rollups, and plenty more in between. 

“Operators” are the entities responsible for running these services. They play a crucial role in maintaining the integrity and performance of the AVSs by managing the underlying nodes and operations.

Notably, AVSs expand the capabilities of Ethereum by providing scalable and efficient solutions for various blockchain applications. Operators ensure these services are reliable and secure, making them integral to the trust and functionality of the AVSs they support.

The First AVSs on EigenLayer

In April 2024, EigenLayer started its phased rollout of the first AVSs, beginning with its own EigenDA solution. After that, eight more services have come online atop the restaking protocol. Five of the most active AVSs so far have been:

1. EigenDA — A new data availability network, EigenDA boasts high throughput and low costs, ideal for scaling Ethereum's data handling capacities. Current TVL: 2.71M ETH
2. eoracle — A decentralized oracle network that securely integrates real-world data into Ethereum, powering various decentralized apps. Current TVL: 1.87M ETH
3. Witness Chain — Coordinates decentralized physical infrastructure networks, offering a new layer of economic activities for blockchain projects. Current TVL: 1.82M ETH
4. Brevis coChain AVS — This service uses zero-knowledge proofs to enable smart contracts to access and compute vast historical blockchain data efficiently. Current TVL: 1.30M ETH
5. AltLayer MACH — Focused on providing fast finality for transactions within rollups, enhancing the speed and reliability of Ethereum-based transactions. Current TVL: 1.29M ETH

Choosing an AVS and Operator

When selecting an AVS and an operator, make sure you first understand the specific services and benefits each offers. 

For example, EigenYields is one of the operators of EigenDA, and it promises to share airdrops with its delegators. While direct incentives around AVSs are scant for now, look for operators to offer more explicit rewards like this going forward. 

While EigenLayer vetted its first wave of AVSs, the ecosystem is moving towards a permissionless model where operators will self-register. This means assessing the risk and potential of each operator will become increasingly important over time. 

Additionally, EigenLayer does not guarantee the fitness of any operators, and bad operators can cause slashing events for their delegators once this functionality is activated later, so performing due diligence before delegating is crucial. It also takes seven days to redelegate to another operator, so make sure you’re confident before diving in. 

How to Delegate Restaked ETH to AVS Operators

1. Access the EigenLayer AVS Dashboard — Navigate to the AVS dashboard and connect your wallet.
2. Select an AVS — Review the available AVSs and select one that aligns with your investment strategy and risk tolerance.
3. Choose an Operator — Each AVS has a list of operators you can click into. Select an operator based on their performance and any additional incentives they might offer.
4. Delegate Your Stake — Click the "Delegate" button next to your chosen operator. You'll be prompted to confirm the delegation with your wallet. 

That’s it, that’s all it takes to get started here! Now just sit back while your restaked ETH is put to work. Again, remember that you can redelegate to a different operator as you please, but the process will take seven days. 

Also, be sure to stay tuned to EigenLayer’s social accounts about new AVSs coming online, as they may offer new opportunities or require adjustments in your delegation strategy!

Getting Started with EIGEN on Bankless

EigenLayer just announced EIGEN, here’s how to get ready for this highly anticipated stakedrop!

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