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    EigenLayer Prepares for Mainnet Launch with New Slashing Testnet, Enhanced Stake Allocation, and Expanding Partnerships

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    EigenLayer has launched a slashing testnet and is waiting for approval to roll out its mainnet. The company intends to introduce a slashing update, allowing node operators to play a larger role and Ethereum-based projects to benefit more from EigenLayer. Unique Stake Allocation and Operator Sets are two key features that enhance operator involvement and reduce risks. Meanwhile, the AVS community on EigenLayer is expanding, with new partnerships announced. Improved restaking rewards are planned for January 2025. EigenLayer’s focus is on boosting its restaking protocol and unlocking its full potential with consumer applications.

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    EigenLayer has taken another big step with the launch of its slashing testnet on Dec. 20. The official rollout of the mainnet is currently awaiting the green light for its EigenLayer Improvement Protocol-002 (ELIP-002).

    EigenLayer is planning to switch things up with a slashing update. This update is basically a new system whereby node operators can play a bigger role and projects that use Ethereum’s layer-1 network for off-chain services, known as Actively Validated Services (AVS), can use more from EigenLayer.

    So, what’s the deal with these Actively Validated Services? Well, they are essentially projects that tap into the Ethereum layer-1 network’s security to verify off-chain activities.

    Things get a bit technical here: staked Ether (also known as stETH) on Ethereum L1 can be used as collateral across different blockchain systems without having to unstake the asset on L1.

    Now, with the introduction of Unique Stake Allocation, restaking operators on EigenLayer can allocate a portion of their staked funds to a single AVS. The advantage of this is that it helps operators minimize the risks related to slashing from other tasks or Actively Validated Services.

    Operator Sets is another handy feature that allows Actively Validated Services to more efficiently manage operators, dish out tasks and set rules for slashing.

    Ah yes, slashing. It’s a mechanism in the blockchain world that’s designed to keep everyone honest. It essentially fines validators or restaking operators by taking a chunk of their staked funds when there are errors, service failures or any shady dealings. This maintains the integrity of the network.

    In other EigenLayer news, the AVS community is growing. RedStone, a major oracle provider, has set up an AVS on EigenLayer. They launched it in test mode with the intention to expand the network going forward.

    Infura, an RPC node provider, also announced its intention to come on board as an AVS on EigenLayer as it seeks to expand its Decentralized Infrastructure Network (DIN), a neat marketplace full of APIs for Web3 developers.

    Rewards for restaking on EigenLayer are about to get better. The company announced in a blog post on Dec. 6 that it was upgrading these rewards. The changes, which will be rolled out in January 2025, let Actively Validated Services distribute rewards to operators based on their performance.

    At the moment, EigenLayer is focusing on bringing more Actively Validated Services and consumer crypto applications to its restaking protocol. The company’s founder, Sreeram Kannan, hinted that applications for everyday users are the final key to unlocking EigenLayer’s full potential. This comes as part of EigenLayer’s strategy to cater to node operators, Actively Validated Services and asset restakers.

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