Eigen Labs has introduced a new feature that enables Actively Validated Services (AVSs) on EigenLayer to add ERC-20 tokens as restakable assets without requiring permission, thereby improving DeFi capabilities.
Eigen Labs announced the implementation of Permissionless Token Support on EigenLayer on August 14. This new feature will allow Actively Validated Services (AVSs) on EigenLayer to add ERC-20 tokens as restakable assets without requiring permission. The announcement represents a substantial advancement in the DeFi sector.
The feature is currently being tested on the testnet with limited access. Prior to its implementation, EigenDA will be the initial AVS to evaluate this functionality. Eigen Labs disclosed that the feature would be implemented on the mainnet as a protocol-layer update in the upcoming week.
Furthermore, it is anticipated that user interface support for restakers will be implemented in the latter half of this year. In anticipation of its April 9 launch on Ethereum’s mainnet, EigenLayer has already attracted approximately $15 billion in deposits from users.
Eigen’s team disclosed that the implementation of Permissionless Token Support would expand the range of assets that AVSs could employ for crypto-economic security. This feature will enable the crypto-economic security of a variety of assets on the protocol, such as stablecoins, BTC-denominated coins, and AVS-native tokens.
These tokens will acquire novel security functionality and utility by employing native tokens for security. It is also possible for AVS protocols to utilize the tokens to provide incentives to users and operators, thereby further personalizing their security profiles.
EigenLayer provided a comprehensive explanation of the process by which its protocol will facilitate the restaking of ERC-20 tokens within its ecosystem. Through a factory contract, AVSs have the ability to create novel strategies for any ERC-20 token.
Strategies, which are smart contracts on the Eigen protocol, predetermine the tokens that restakers and operators may restake. By placing the tokens in quorums, AVSs can disseminate duties to operators and utilize them for crypto-economic security.
EigenLayer has also partnered with Fhenix to enhance the security and privacy of Ethereum. The two organizations intend to improve Ethereum’s on-chain computational effectiveness by creating fully homomorphic encryption (FHE) coprocessors.
Fhenix confirmed that FHE coprocessors can process a greater volume of encrypted data without decrypting it, which benefits a variety of industries by enabling developers to develop applications without exposing sensitive data. The partnership will allow Fhenix to capitalize on EigenLayer’s crypto-economic security framework in order to enhance Ethereum’s security.
EigenLayer’s implementation of Permissionless Token Support is set to transform the DeFi landscape by increasing the crypto-economic security of AVSs and expanding the range of assets they can leverage. EigenLayer is advancing the frontiers of blockchain technology and security with the forthcoming mainnet deployment and its partnership with Fhenix.
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