The burgeoning EigenLayer ecosystem is buzzing with activity as Ether.Fi, the leading liquid restaking service, throws its weight behind RedStone Oracles. In a $500 million deal, Ether.Fi will dedicate resources to bolstering RedStone’s data oracles, crucial components that bridge the gap between blockchains and the real world.
This move comes just days after EigenLayer, the innovative “restaking” protocol, launched a limited version on Ethereum’s mainnet. The service has already attracted a staggering $12 billion in user deposits, many channeled through liquid restaking providers like Ether.Fi. These middlemen simplify and potentially sweeten the deal for users looking to participate in EigenLayer’s “pooled security” system.
Here’s how it works: EigenLayer allows new blockchains to “borrow” Ethereum’s robust security. This “pooled security” relies on users staking their Ethereum (ETH) to power specific “actively validated services” (AVSs). RedStone, as an AVS, provides data feeds for blockchains, acting as a vital information bridge.
Under the new agreement, Ether.Fi will dedicate a portion of its over 20,000 node operators to manage RedStone’s AVS. These operators will leverage Ether.Fi’s native liquid restaking token (eETH) to secure the network. This “restaked Ether” acts as a safeguard against potential disruptions and malicious attacks within RedStone’s network.
For users, liquid restaking services like Ether.Fi offer a convenient entry point. They pool user deposits into EigenLayer, potentially offering additional rewards and tradable “liquid restaking tokens” (like eETH) that represent the underlying investment. Currently, Ether.Fi boasts a whopping $3.8 billion locked up within EigenLayer, assets that will fuel the future pooled security system.
This isn’t Ether.Fi’s first foray into supporting AVSs. Back in March, they pledged a similar $600 million commitment to Omni, an AVS facilitating communication between layer 2 rollups. EigenLayer, despite its impressive $15 billion in total deposits, remains under development on the Ethereum mainnet. Currently, only EigenDA, a data availability service built by Eigen Labs (the team behind EigenLayer), is operational on the network.
Also Read: Ether.Fi Token Up 50% as Liquid Restaking Takes DeFi by Storm (TVL Up 30x This Year!)
RedStone and other AVSs can “register” with EigenLayer but will have to wait until later this year for full deployment capabilities, according to Eigen Labs estimates. As EigenLayer matures, expect to see more partnerships like this one, shaping the future of blockchain security and interoperability.
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