EigenLayer is an Ethereum-based protocol, that introduces the concept of restaking, a novel element in the realm of cryptoeconomic security. This mechanism allows for the repurposing of ETH within the consensus layer. Stakeholders of ETH, either directly or via a liquid staking token (LST), have the option to engage with EigenLayer's smart contracts. Through this engagement, they can restake their ETH or LST, thereby enhancing the cryptoeconomic security across various applications on the network and earning additional rewards in the process.
EigenLayer empowers Ethereum stakers to enhance the security of multiple services by restaking their already staked ETH and opting into various services at once. This process of repurposing ETH to secure multiple services lowers the capital requirements for stakers and significantly boosts the trust assurances for each individual service.
Traditionally, creators of new decentralized services on Ethereum have faced the challenge of establishing a separate trust network for securing their systems, leading to fragmented security. EigenLayer addresses this issue by allowing any service, irrespective of its characteristics (such as EVM-compatibility), to leverage the collective security provided by Ethereum's stakers. This facilitates a landscape of unfettered innovation and free-market governance.