EigenLayer Announces New Cap Increase for Liquid Staking Tokens (LSTs)

On August 22 at 7am Pacific Time, EigenLayer will take another step forward in its evolution. Restaking opportunities will be expanded by raising the caps on Liquid Staking Tokens (LSTs), including stETH, rETH, and cbETH. After the caps are lifted, users will be able to deposit any one of these tokens into EigenLayer. At the point any LST reaches a milestone of 100k tokens restaked, a global pause will be implemented.

For example: after the caps are lifted, imagine a scenario in which all three tokens have 50k restaked. All deposits will remain open until one of those tokens reaches 100k restaked. If none of them reach 100k restaked, deposits will remain open indefinitely.

This increase supports the EigenLayer mission to broaden access to restaking opportunities while maintaining the highest standards of asset safety and security.

Native staking for beacon chain validators remains uncapped.

Details of the Cap Increase

Following the previous successful increase of LST caps, we are delighted to announce another significant expansion. The cap for LSTs, including stETH, rETH, and cbETH, will now be lifted until any one of the LSTs hits 100k tokens restaked. This expands restaking capacity and enables a more extensive network of users to actively participate in restaking endeavors.

The procedure for this cap increase will follow a similar governance process previously undertaken:

Protocol Parameter Change Approval: The change will need to be approved through our Multisignatory Governance system.

10-Day Timelock: Once approved, the Operations Multisig transaction to raise the caps will be queued in a 10-day timelock, aligning with the governance processes and security protocols.

Triggering the Action: After the 10-day timelock period, the Operations Multisig will trigger the action from the timelock contract, initiating the parameter changes and executing the modifications.

Triggering the Pause: If any one LST hits approximately 100k ETH restaked, the Pauser Multisig will trigger a global pause.

A Resilient Ecosystem

This substantial cap increase reflects EigenLayer's continued commitment to network security, decentralization, and the enhancement of the user restaking experience. The measured rise in LST caps, in combination with unrestricted native restaking, ensures a robust and tested ecosystem where users can confidently restake their assets.

Spotlight on Prominent AVSs: Diving Deeper into the Ecosystem:

As we continually evolve, we recognize the importance of various Actively Validated Services (AVSs) within our ecosystem. Here's a brief overview of some notable AVSs:

EigenDA: Focuses on hyperscale data availability for any execution layer. Notable EigenDA adopters include Celo, Mantle, Rollup-As-a-Service providers and more. This AVS is being developed by EigenLabs.

Espresso Systems: Offers decentralized sequencing on EigenLayer and captures value through cross-rollup MEV. Backed by Yale's Ben Fisch and investors like Greylock and Sequoia.

Lagrange: Known for ZK-powered cross-chain messaging using state committee, leveraging EigenLayer restaking for dynamic scaling of state proof security.

Omni Network: Provides a fast-finality chain for cross-rollup messaging, utilizing the Cosmos SDK. Supported by a Harvard-origin team and investors such as Pantera.

Blockless: Delivers ZK verifiable serverless functions, optimizing decentralized applications. It uses EigenLayer to secure transaction consensus.

Hyperlane: Employs EigenLayer to safeguard interchain application developers’ messages from Ethereum using restaked economic security.

Looking Ahead: A Deep Dive into the Operator Testnet and M2 Testnet Features

Operator Testnet: Elevating Our Vision

As EigenLayer progresses in its journey, we're elated to unveil the upcoming launch of the Operator Testnet. This pivotal testnet serves multiple purposes:

Validation Services for EigenDA: Operators get an opportunity to provide validation services for EigenDA.

Node Operation: Prospective operators can step up and register as an EigenLayer node operators using the dedicated Operator CLI.

Performance and Maintenance Tools: The Operator Testnet is well-equipped with features tailored for operators. They can monitor node performance, effortlessly transition to the latest software versions for both EigenLayer and EigenDA AVS, and gracefully decommission operations.

This testnet essentially acts as a litmus test, ensuring operators can effectively engage with the EigenDA ecosystem, upholding our standards of functionality and security.

M2 Testnet Features: Enhancing Delegation Experiences

The horizon also brings forth an exhilarating expansion of our Operator Testnet, spotlighting the delegation facet:

Staker-to-Staker Delegation: This phase empowers stakers, granting them the autonomy to delegate or retract delegations on the EigenLayer Testnet.

Operator Delegation via CLI: A streamlined process, where stakers can effortlessly delegate and un-delegate to operators, leveraging the command-line interface.

As we traverse this delegation journey, our dedication to user-centricity remains unwavering. We have slated user testing sessions, striving for an intuitive and seamless delegation experience for every participant.

The inception of the Operator Testnet underscores EigenLayer's unwavering commitment to fostering innovation, championing decentralized validation, and sculpting a fortified restaking infrastructure. Our aim always remains to resonate with the aspirations and needs of the vibrant EigenLayer community. We invite you to stay engaged, as we unveil more detailed insights about participation and ongoing progress.

Don’t miss out on this opportunity to be part of the restaking collective. Together, we are shaping the future of restaking!

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