EigenLayer is the restaking protocol on Ethereum that allows ETH stakers and Liquid Staking Token (LST) holders to “restake” — opting in to have their staked ETH secure additional protocols beyond Ethereum itself — creating a marketplace for cryptoeconomic security where new projects (Actively Validated Services, AVS) can bootstrap trust without finding their own validator sets. EIGEN is the “intersubjective work token” — distinct from ETH, it’s slashable for off-chain behaviors that cannot be objectively verified on-chain (like software bugs in an AVS), solving a critical limitation in pure ETH restaking. EigenLayer became the largest DeFi protocol by TVL within months of launching in 2023.
| Stat | Value |
|---|---|
| Ticker | EIGEN |
| Price | $0.18 |
| Market Cap | $124.33M |
| 24h Change | +11.7% |
| Circulating Supply | 691.09M EIGEN |
| Max Supply | 1.67B EIGEN |
| All-Time High | $5.65 |
| Contract (Ethereum) | 0xec53...1f83 |
| Contract (Base) | 0x2081...46ee |
How It Works
Restaking:
Ethereum validators and LST holders (stETH, cbETH, etc.) deposit into EigenLayer and opt-in to additional “slashing conditions” from AVS protocols. In exchange, they earn AVS rewards on top of Ethereum staking yields.
Actively Validated Services (AVS):
Any protocol needing decentralized validation can launch as an AVS on EigenLayer — examples include EigenDA (data availability), Lagrange (ZK coprocessor), AltLayer (rollup tooling). AVS operators are paid in their native token; restakers earn this additional yield.
EIGEN (intersubjective token):
EIGEN is slashable for “intersubjective faults” — events that can’t be proven cryptographically on-chain but that a community would agree are wrong (e.g., double-signing in a non-EVM context). EIGEN provides a social slashing layer beyond objective on-chain slashing.
EigenDA:
The first major AVS — a data availability service for Ethereum rollups using EigenLayer security. EigenDA provides cheaper DA than Ethereum calldata.
Tokenomics
| Metric | Value |
|---|---|
| Max Supply | 1,674,654,804 EIGEN |
| Community | 45% to community (airdrops, ecosystem) |
| Investors | 29.5% (vested) |
| Team | 25.5% (vested) |
| Launch | Airdrop in 2024; trading enabled Oct 2024 |
Use Cases
- Intersubjective slashing — EIGEN is staked and slashable for AVS operator misbehavior
- AVS rewards — EIGEN earned for securing intersubjective AVS protocols
- Governance — EIGEN holders vote on protocol upgrades and slashing parameters
- Security marketplace — EIGEN staking extends Ethereum security to new applications
History
- 2021 — Sreeram Kannan (UW professor) and team conceptualize EigenLayer
- 2022 — $50M Series A from a16z; whitepaper published
- Apr 2023 — EigenLayer mainnet launches (deposit-only, no withdrawals); instantly becomes top-5 DeFi protocol by TVL
- 2023 — $100M Series B; multiple AVS protocols announced
- Apr 2024 — EigenLayer opens restaking withdrawals; TVL exceeds $15B
- May 2024 — Season 1 EIGEN airdrop; 5% of supply to early users
- Oct 2024 — EIGEN token enables trading; additional AVS integrations live
Common Misconceptions
“Restaking doubles your Ethereum staking risk.” Risk increases, but it’s additive, not multiplicative. Restakers choose which AVS to opt-in to and can withdraw. Risk is calibrated by which AVS conditions they accept.
“EIGEN is the same as the ETH you’re restaking.” EIGEN and restaked ETH are separate assets. ETH secures Ethereum consensus; EIGEN secures intersubjective AVS behaviors. Both can be slashed independently.