Coming Soon: Permissionless Token Support on EigenLayer
Eigen Labs is proud to introduce Permissionless Token Support, an upcoming update, to the EigenLayer protocol. This feature will enable any ERC-20 token to be permissionlessly added as a restakable asset, significantly broadening the scope of assets that can contribute to the security of decentralized networks, and unlocking the cryptoeconomic security of unlimited ERC-20 tokens on EigenLayer.
What
With this update, AVSs can choose to accept any ERC-20 token as a restaked asset to provide cryptoeconomic security for their AVS. This allows AVSs to evaluate the supply and utility of all available tokens to create cross-ecosystem partnerships while ensuring the safety and security of their services. This increases alignment and connectivity across the ecosystem, moving us closer to the ultimate goal of open innovation.
Why
- Expanded Cryptoeconomic Security
Any ERC-20 asset will be able to be utilized for cryptoeconomic security, providing a more rich and diverse security landscape. This enhances the overall security options within the network, allowing AVSs to collaborate with community-owned tokens. Categories of potential ERC-20 assets include, but are not limited to, native AVS tokens, stablecoins, and BTC-denominated tokens. - Customized Security Profiles
AVSs will have the ability to fully customize their cryptoeconomic security profiles. They can choose to distribute work and rewards to a broad array of tokens supported by EigenLayer operators. - AVS Token Utility
The ability for AVSs to use their native token for cryptoeconomic security unlocks new utility for AVS tokens including gaining essential security functionality and being used for rewarding restakers and operators.
How
At the protocol level, new Strategies (smart contracts that define which tokens can be restaked on EigenLayer) can be created using a factory contract for any ERC-20 token. These tokens can then be included in quorums by AVSs for utilization as cryptoeconomic security and the distribution of operator tasks in return for AVS rewards.
In an upcoming update for the staking app user interface, restakers will be able to deposit and delegate these tokens to operators.
When
Currently, this feature is on testnet for a permissioned testing phase. EigenDA will be the first AVS to test and use permissionless token support.
Mainnet deployment, a protocol-level update, is scheduled for next week. User interface support for restakers on the EigenLayer web app will be added later in Q3.