How to Participate in a Liquid Staking Derivative

5min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

Solo stakers can participate with Eigenlayer by setting their withdrawal credentials to smart contracts. If you have misbehaved on Eigenlayer, it will slash a portion of the stake and then only let you withdraw the remaining portion which is not slashed in that way. Slashing happens only if there is a provable fault on some service or contract. So essentially when you're opting into a service, what you're officially opting into is the conditions of a particular contract. And for example, if you're running a chain, two submits proof that someone else has signed up as an operator.

In this week's episode of 0xResearch, Sreeram Kannan explains how EigenLayer enables permissionless and modular innovation across all blockchain layers. We explore EigenLayer's ETH value accrual mechanism, slashing mechanics and economic incentives, novel data availability solutions, re-staking risks and more. EigenLayer might be the most underrated project in Ethereum right now. Tune in to find out why!

- -

Timestamps:

(00:00) Introduction

(01:10) Hot Seat/Cool Throne

(15:51) Solana's Bonk by Flipside Insights

(18:44) “Chainalysis Ad”

(19:16) Interview Start: EigenLayer

(35:05) LSD and Native Re-Staking

(40:43) Slashing Mechanics

(46:47) “Chainalysis Ad”

(47:29) Pricing the Value of Decentralization

(52:29) EigenLayer's role in a Modular Paradigm

(58:57) EigenDA vs Other Data Availability Services

(1:07:46) Does Re-Staking Overleverage ETH's Security?

(1:12:43) Deployment Timeline

(1:14:57) EigenLayer's Value Accrual

- -

Follow Sreeram: https://twitter.com/sreeramkannan

Follow Dan: https://twitter.com/smyyguy

Follow Sam: https://twitter.com/swmartin19

Follow Blockworks Research: https://twitter.com/blockworksres

Subscribe on YouTube: https://bit.ly/3foDS38

Subscribe on Apple: https://apple.co/3SNhUEt

Subscribe on Spotify: https://spoti.fi/3NlP1hA

Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: https://blockworks.co/newsletter/

- -

Resources:

EigenLayer

https://www.eigenlayer.com/

Chainalysis is the leading blockchain analytics company.

Web3 companies like Dapper, Gemini, and Crypto.com manage risk, drive investigations, and inform growth strategies with Chainalysis. Together, we build trust in blockchains, grow safe consumer access to cryptocurrency, and promote more financial freedom with less risk.

Visit Chainalysis.com/blockworks to learn more now.

Flipside has the most comprehensive data in web3 to get you the insights you need to work smarter. Instantly query the data yourself (for free!) or browse dashboards by elite analysts to find hidden alpha and get the edge you need to win.

Earn up to $75 USDC by completing 0xResearch's exclusive bounty for analysts on Flipside: https://flipsidecrypto.xyz/drops/0xresearch-bounty-defi-users-7f5442

- -

Disclaimer: Nothing said on 0xResearch is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Dan, Sam, and our guests may hold positions in the companies, funds, or projects discussed.