Eigenlayer, a new protocol on Ethereum (CRYPTO:ETH), has commenced operations on the platform's mainnet, effectively locking over $12 billion in total value.

The protocol is designed to foster a restaking ecosystem, offering the potential for high yields.

However, this innovation is not without its risks, as it raises concerns regarding possible centralisation and the introduction of slashing cascades that could compromise the security of the Ethereum network.

To mitigate these concerns, initial measures include temporarily disabling slashing mechanisms, aiming to ensure a smooth integration while closely monitoring the system's impact on Ethereum's stability and security infrastructure.