Description

EigenLayer is a protocol that has introduced “re-staking.” Restaking allows users to use the security of Ethereum to secure other networks. This is essentially done by bonding LST to the EigenLayer contract to secure other protocols. In exchange for re-staking, re-stakers will receive protocol fees and rewards for providing this security.

Use Case

Traders

Re-staking Ethereum allows traders the ability to retain liquidity while at the same time speculating on this entire new crypto primitive. Re-staking Ethereum aligns with their strategic approach of harnessing various investment tools to optimize profit potential, reinforcing their position in the ever-evolving digital asset landscape.

Researchers
Analyze the economic incentives driving participants to engage in re-staking, exploring its potential impact on Ethereum's ecosystem dynamics and long-term sustainability. Additionally, they use this data to understand the the incentive structure, potential benefits and risks of the entire re-staking ecosystem.

Analysts
It is important to understand staking rewards, slashing conditions, and network participation rates, to gauge the potential returns and associated risks of engaging in re-staking activities. Furthermore, they monitor Ethereum's on-chain metrics and network health indicators to identify emerging trends and potential opportunities for optimizing staking strategies.

Methodology

TVL: We calculate TVL of the protocol by summing all the Deposits/Withdraws in to EigenLayer and multiplying the total number of tokens by their respective prices. This is represented by in terms of Tokens and USD amount.

Amount Staked LST / Native ETH: We calculate the total number of Liquid staking tokens and Native ETH deposited in to the Eigen Layer contracts each day and then calculate the cumulative daily balance.

Daily Depositors: We count the number of distinct wallets that are depositing in to EigenLayer contracts each day.

Pod Deployed: We watch for each pod creations and sum the daily amount created and calculate the cumulative amount of pods deployed daily.

LST Delegation to Operators: Users who stake on Eigen layer can then delegate their LST to Operators who will support AVSs. We can see who the largest and most popular operators are by analyzing the number of ETH/LST delegated to each operator.

Number of Stakers to Operators: We sum the total number of wallets that delegate to each operator. This helps show us the distribution of ETH staked and the number.

AVS Overview: This monitors and updates the AVS that are deployed and created. It will give an idea of the overview of the area of focus for the AVS.

Registered AVS: We monitor all the events that show an Operator registering an AVS. This allows us to monitor which operators are supporting different AVSs.