EigenLayer lets you restake your ETH. This means you can use your already staked ETH to secure other networks and services. These services are called Actively Validated Services or AVSs. Think of them as specialized jobs for your ETH.
Using AVSs can help you earn more rewards. But it also means taking on more responsibility. Here’s how you can use AVSs for different purposes.
What are Actively Validated Services (AVSs)?
AVSs are new protocols that need their own security. Instead of creating their own validators from scratch, they borrow security from Ethereum via EigenLayer. When you restake your ETH on EigenLayer, you can choose to help secure these AVSs.
By helping an AVS, you are acting as a validator for it. You get rewarded for this extra work. However, if you misbehave, your restaked ETH can be ‘slashed’, meaning you lose some of it. This is why they are called ‘actively validated’.
Using AVSs for Data Availability
Some AVSs focus on data availability. This is important for scaling solutions like rollups. Rollups need to store data somewhere so everyone can see it. Data availability AVSs provide this storage and verification.
If you want to support the growth of scalable blockchains, you can restake your ETH to secure these data availability services. This helps make transactions cheaper and faster for users on these networks.
Using AVSs for Decentralized Oracle Networks
Oracles connect blockchains to real world data. Think of prices for stocks, crypto, or weather information. Decentralized oracle networks (DONs) are AVSs that provide this data reliably.
By helping to secure a DON AVS, you are contributing to making smart contracts smarter. This means DeFi applications can use more accurate and timely data. This is similar to how Chainlink Price Feeds work, but AVSs offer a new way to provide that security.
Using AVSs for Programmable Transaction Execution
Some AVSs are designed to help execute complex transactions. This could involve things like managing liquidity or running advanced trading strategies.
If you are interested in the development of more sophisticated blockchain applications, you might choose to support these types of AVSs. Your restaked ETH helps ensure these complex operations run smoothly.
Using AVSs for Decentralized Storage
Similar to data availability, other AVSs can focus on decentralized storage. These services ensure data is stored securely and can be retrieved when needed, without relying on a single company.
Supporting decentralized storage AVSs helps build a more censorship resistant internet. Your restaked ETH contributes to the infrastructure that powers Web3.
How to Get Started
First, you need to restake your ETH on EigenLayer. You can learn more about how to do this in our guide, Making Your Restaked ETH Work Harder on EigenLayer.
Once your ETH is restaked, you can look at the available AVSs on the EigenLayer interface. Each AVS will have its own requirements and potential rewards. Make sure to understand the risks involved, especially the slashing conditions, before committing your restaked ETH.
By choosing specific AVSs, you can direct your restaked capital to support the parts of the crypto ecosystem you believe in most. This not only helps these services grow but also potentially increases your overall earnings.
