In October, EigenLayer initiated programmatic EIGEN token incentives for restakers to bolster restaking and p2p.org payouts.
EigenLayer, the largest restaking platform for Ethereum, is expanding its restaking options to include wrapped Bitcoin yield and payouts from node operator P2P.org, as per distinct announcements made on November 4.
EigenLayer to Enhance Restaking
In a blog post, the ARPA Network, a protocol that is based on EigenLayer, announced that it will commence paying rewards to depositors of uniBTC, a restaked BTC container.
ARPA stated that the inclusion of uniBTC as a supported asset creates new liquidity pathways and reward opportunities for BTC holders.
It was also reported that on November 4, P2P.org, the largest professional validator, or “operator,” of EigenLayer, distributed $2.2 million in Ether to restakers.
Restaking is the process of simultaneously securing other protocols by utilizing a token that has already been staked, which is collateral that has been posted with a validator in exchange for rewards.
According to DefiLlama, the platform has secured over $10 billion in restaked collateral for dozens of third-party protocols, which are referred to as actively validated services (AVSs).
The platform implemented a rewards program in EIGEN, the protocol’s native token, in October to expedite the adoption of restaking.
“AVSs will pay fees to stakers and operators, and stakers will receive programmatic rewards contingent upon the number of AVSs they serve.” EigenLayer founder Sreeram Kannan informed Cointelegraph in October that the more AVSs pay, the more value is allocated.
ARPA employs the restaking platform to generate random numbers in a secure manner for a variety of applications, including onchain governance, lotteries, and gambling. It was one of the first AVSs to begin compensating restakers.
According to the developer’s website, P2P.org is accountable for up to $540 million in restaked collateral as of November 5.
It is in competition with a multitude of other operators, including staking-as-a-service providers like Figment, Blockdaemon, and Ankr.
Kannan stated that EigenLayer is prioritizing the integration of consumer Web3 applications following EIGEN’s October 1 unlock.
RedStone, one of the largest Oracle providers, introduced a data-validation service on the platform on October 23.
EigenLayer is under pressure to increase protocol revenues from AVSs, as the EIGEN reveal was one of the most eagerly anticipated events of 2024.
According to CoinMarketCap data, the token is currently trading at a fully diluted market capitalization of approximately $4 billion.
EigenLayer asserts that EIGEN is intended to safeguard protocols from a more extensive array of defects than can be addressed by current proof-of-stake tokens, including ETH.
