Cryptocurrencies

    Eigenlayer's Ethereum debut faces centralisation

    Article Image

    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.

    Disclaimer

    Grafa is not a financial advisor. You should seek independent, legal, financial, taxation or other advice that relates to your unique circumstances. Grafa is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on the information provided directly or indirectly by use of this platform.

    Publisher
    Grafa