EigenLayer Staking Protocol Launches on Testnet jpg

EigenLayer Staking Protocol Launches on Testnet

Defi news, News

EigenLabs has deployed a testnet for the EigenLayer protocol.

According to the announcement, “This marks an important milestone on the road toward the future of cryptoeconomic security, by creating a free market for decentralized trust.”

EigenLayer’s launch will be in three stages: “Stage 1: Stakers, Stage 2: Operators, and Stage 3: Services.”

Stage 1 of EigenLayer is a testnet that allows different liquid staking tokens, including stETH and rETH, to be restaked on EigenLayer contracts.

It also introduces native restaking where new ETH stakers can set their withdrawal credentials to their own EigenLayer smart contract “pods”. Existing native stakers can take part in EigenLayer after the next Shapella upgrade to Ethereum, which is slated for April 12, 2023.

Two alternative multi sigs are available: a team multisig and a community multisig. Sreeram Kannan, EigenLayer’s founder, believes that enabling the transfer and re-staking of ETH onto other networks would reward validators and stakers with higher yields.

“Note that this is an early testnet, with code undergoing active development, and audits to be completed soon,” EigenLayer noted.

Compiled by Coinbold