Navigating the crypto marketplace might seem easy at first but it is not as simple as you think. There are many complexities involved in it. However, if you carry out deep research about different cryptographic aspects, they are not so hard to understand. Currently, one such aspect of the crypto-economy that is making rounds on the internet is the concept of “Restaking.” And this concept is directly related to ËigénLayér.

Therefore, this article is going to help you a lot in finding out more about this platform and the concept of restaking. But, before anything else, let’s start with understanding the basics. As we know that the Web3 world is one of the most significant developments of today, we cannot deny the fact that it helps us in pulling down the cost of building decentralized applications without letting you compromise at the security level. In this scenario, ËigénLayér is all set to play its role by providing significant validation services at a very low cost.

What is ËigénLayér? 

To put it short, we can say that it is an Ethereum-based protocol that plans to boost the security of other protocols by the use “restaking” concept. Well, if you are a true player in the crypto field, you must have heard about “Staking” where users agree to hold up their crypto assets with a validator to add to the security of a particular network, and in turn, they are provided some rewards for the same. Well, the concept restake allows you to put your held crypto assets to stake one more time for protecting and up-scaling another protocol. This incurs a much lower cost and is considered an affordable option to provide security to supported networks.

If we talk about ËigénLayér, we find out that it works by allowing ETH stakers to reallocate the ETH as well as LSTs (Liquid Staking Tokens) that they have staked earlier to strengthen the security of preferred protocols. This turns out to be beneficial for stakers as well as protocols by cutting down the cost of the creation of validator sets.

Work mechanism ËigénLayér 

If you are wondering how ËigénLayér works, this section of the read is going to help you a lot with that. As we have discussed in the previous section, ËigénLayér promotes the concept of “Restaking” which means repurposing your staked ETH. Users who agree to do so are known as restakers who give permission to grant additional enforcement rights to their pre-staked ETH. The process slashes the cost that is required to meet the conditions of the project including data availability and bridges.

To put it short, we can say that ËigénLayér works as the best marketplace where restakers get incentives for restaking and securing the protocols. However, in the absence of this, decentralized applications will eventually have to create their native token and do everything from the very beginning which requires a lot of cost.

Learn how to restake your ETH on ËigénLayér 

If you are interested in knowing the comprehensive procedure that you need to follow for restaking your ETH, then you should take a look at the steps below. We’ll guide you through the comprehensive process by taking the example of restaking swETH:

1. Well, you can begin by opening the Swell app and stake your ETH there
2. Now, you must go to the official website of ËigénLayér i.e. https://www.ËigénLayér.xyz/
3. Choose the “Restake Now” option and then simply connect your Web3 wallet to it
4. After ensuring that you’re connected to the Ethereum mainnet, look for swETH
5. Provide the amount of swETH you wish to restake and choose “Next”
6. Follow some more on-screen instructions and confirm your swETH deposit
7. Once successful, you can monitor your rewards

Different types of staking available on ËigénLayér 

Though there are not many but two types of staking options present on ËigénLayér via https://app.ËigénLayér.xyz/. Well, the two options are- Native Restaking and Liquid Restaking.

• Native Restaking 

In this type of restaking, the Ethereum validators eventually withdraw their credentials to the EigenPods (EigenPods are known as Ethereum’s smart contract). In case you wish to be involved in native staking on ËigénLayér, you need to operate an Ethereum validator node.

• Liquid Restaking 

This is another type of restaking concept where users can restake their liquid staking tokens also known as LSTs into the smart contracts of ËigénLayér. The validators who have LSTs can stake their already staked tokens from protocols such as Lido and restake them on ËigénLayér.

Why should you restake on ËigénLayér? 

Though ËigénLayér comes with a wide range of risks and benefits, but it is better that you take a look at the brighter side of the things. So, let’s take a look at the advantages of restaking through ËigénLayér:

• Get Multiplied Rewards: Restaking on the ËigénLayér allows you to earn additional rewards by staking assets on different protocols.
• Improved Aggregation: When you entrust your assets to a Large Capital pool, it helps reduce the chances of the protocol’s corruption cost.
• Decreased Capital Cost: When you reuse your capital across multiple services, it helps in repaying its cost on the side of the validator. Additionally, on the Developer’s side, it solves the issue of bootstrapping. It does so by offering a large set of validators at a very reasonable cost.
• Additional Network Security: By providing flexibility to the Ethereum ecosystem, you will be getting access to the network security.

Final Thoughts: 

Without a doubt, we can say that ËigénLayér plays a significant role in providing benefits to multiple parties. In addition to benefitting restakers, it also helps developers to shift their focus towards the features of decentralized applications (dApps). Though it has some yield risks and centralization risks, one should always look at the brighter side.