Eigen Ecosystem

EigenLayer has 4 main components in the ecosystem:

1. Actively Validated Services (AVS)

Actively Validated Services (AVS) in EigenLayer are decentralized services that leverage Ethereum's security through EigenLayer. These services can support various networks, such as sidechains and data layers. By utilizing Ethereum's pooled resources for tasks like middleware services, block building, and transaction ordering, EigenLayer enhances security. This facilitates innovation in areas like Miner Extractable Value (MEV) and Proposer-Builder Separation (PBS).

2. Ethereum Stakers

In EigenLayer, Ethereum stakers can enhance the security of multiple networks by restaking their ETH. This allows them to use their existing capital to support various networks via smart contracts. While this approach offers additional yields, it also carries the risk of slashing if stakers do not meet the conditions set by the services they support.

3. Node Operators

Node operators in EigenLayer provide the computational power needed to securely run services like decentralized applications (DApps), oracles, and bridges. These operators have the flexibility to select the services they want to work with and follow the recommendations provided by the AVS.

4. EigenLayer Protocol

The EigenLayer protocol is composed of Ethereum smart contracts that enable trustless cooperation between stakers, node operators, and services. These contracts allow users to restake their assets, delegate them to node operators, and engage with on-chain service modules. The service modules have predefined conditions for rewards and slashing, ensuring smooth interactions between operators and services.