Coinbase Research Report: A Panoramic Overview of the EigenLayer AVS Ecosystem

Key Insights

EigenLayer is a protocol built on Ethereum that introduces a new cryptoeconomic security primitive called restaking.

Through EigenLayer, developers can leverage Ethereum's existing economic security infrastructure (i.e., validator sets and staked ETH) to launch new Active Validation Services (AVS).

Compared to how traditional cloud platforms and SaaS solutions revolutionized Web2 development, EigenLayer and its growing AVS ecosystem unlock the "verifiable cloud" paradigm for Web3.

• As restaking and shared security models evolve, their impact on the blockchain ecosystem will become increasingly significant, driven by the needs of stakers and developers seeking to unlock new opportunities on-chain.

What is EigenLayer?

EigenLayer is an Ethereum-based protocol that introduces a new type of cryptoeconomic security primitive—restaking. The core of EigenLayer consists of a series of smart contracts that allow users to choose to "restake" their staked ETH or Liquid Staking Tokens (LST) to launch new PoS networks and services within the Ethereum ecosystem, thereby obtaining additional staking income and rewards.

The core goal of EigenLayer is to reduce the complexity for developers to build and launch these networks from scratch by leveraging Ethereum's established trust guarantees and economic security infrastructure, thereby ushering in a new era of permissionless innovation and free market governance. EigenLayer was launched in 2023 and allows users to restake their ETH or LST. According to EigenLayer data, over 4.9 million ETH (worth approximately $15 billion) has been restaked in the EigenLayer protocol.

Why is This Important?

The Ethereum network uses a PoS consensus mechanism where node operators stake their ETH and run validator software to secure the network (i.e., store data, process transactions, add new blocks to the beacon chain, etc.) in exchange for rewards (i.e., a portion of the network fees). If node operators fail to perform their validation functions or misbehave, they risk losing their staked ETH (i.e., slashing).

Today, developers building protocols on Ethereum that require external operators are typically required to launch and secure their own PoS network. This is a difficult task that requires developers to design and launch a token, incentivize node operators to stake that token and run validator software, and implement fair reward distribution and slashing mechanisms. In addition, according to EigenLayer, forcing each new protocol to launch its own PoS network would fragment Ethereum's security and draw value (in the form of staked tokens) away from the beacon chain.

How Does EigenLayer Work?

EigenLayer addresses the above challenges by enabling developers to leverage Ethereum's existing validator set and staked ETH from day one. This approach is called "shared security." Shared security and restaking mechanisms not only promise to lower the barrier to entry for developers and promote rapid innovation within the Ethereum ecosystem, but also aim to create new avenues for Ethereum stakers to actively participate in multiple networks that require cryptoeconomic collateral and external operators, thereby maximizing their reward potential.

The protocol architecture of EigenLayer consists of four key components: re-stakers, operators, active verification services (AVS), and AVS consumers.

• Re-stakers: Individuals or entities who restake their staked ETH or LST to extend the security of services in the EigenLayer ecosystem, which are called Active Validation Services (AVS).

• Operators: Entities that run specialized node software and perform AVS verification tasks, receiving predefined rewards in return. Operators register in EigenLayer, allowing re-stakers to delegate to them, and then choose to provide verification services for various AVS. It should be noted that operators are subject to the slashing conditions of each AVS.

• Active Verification Service (AVS): Any system that requires a unique distributed verification method for verification. AVS can take many forms, including data availability layers, shared sequencers, oracle networks, bridges, coprocessors, applied cryptography systems, etc.

• AVS Consumer: An end user or application that consumes the services provided by EigenLayer.

Encrypted "Verifiable Cloud"

Sreeram Kannan, founder of EigenLayer, likes to say, "EigenLayer is the cryptographically verifiable cloud." But what does that really mean? In traditional cloud architectures, centralized entities provide computing, storage, and hosting services for various Web2 SaaS solutions. These SaaS solutions are generally divided into two categories: horizontal SaaS (i.e., generalized software solutions for a wide range of end users, regardless of their industry) and vertical SaaS (i.e., software solutions for specific market segments, use cases, or industry standards).

Compared to the transformation of Web2 development by cloud platforms and SaaS solutions, the emergence of EigenLayer and AVS provides a similar paradigm shift for the blockchain ecosystem. EigenLayer aims to provide cryptoeconomic security services (e.g., "Web3 SaaS") to AVS. Similar to the emergence and widespread adoption of SaaS solutions in the context of Web2, a similar trend is emerging with AVS driven by the needs of protocols and dapps.

Overall, EigenLayer's "shared security system" aims to drive rapid innovation on-chain while providing enhanced decentralization, trust, and transparency, redefining the future of "verifiable cloud" computing.

EigenLayer AVS Ecosystem (Current Status)

EigenLayer launched its Operator and AVS modules on mainnet and currently has a vibrant ecosystem of Operators (over 200 registered), as well as a growing pipeline of AVS projects expected to be launched in the coming months. Similar to the traditional SaaS landscape, AVS projects are naturally separating into different categories (i.e., horizontal and vertical specific).

Under the above framework, the current EigenLayer AVS ecosystem can be categorized as follows:

Horizontal AVS

• Developer Services: Frameworks and tools that help developers build and deploy PoS networks that require shared security infrastructure (e.g., AVS, L1s/L2s, etc.). Examples include Othentic, Blockless, and Ethos.

• Operator Services: Services that help AVS operators manage their node infrastructure, validator tasks, and/or staking operations. Examples include Supermeta.

• Payment Services: Services that manage the delivery of payments (i.e., AVS rewards) to re-stakers and operators. Examples include Anzen.

Vertical AVS

• Rollup Services: Developing infrastructure services that extend Ethereum (e.g., rollups) while inheriting the security of the Ethereum trust network. Examples include data availability (e.g., EigenDA, NearDA), shared ordering (e.g., Espresso, Radius), Rollup as a Service (e.g., Caldera, AltLayer), and interoperability (e.g., Omni, Polymer, Hyperlane, Polyhedra).

• Decentralized Networks: Networks that require distributed verification mechanisms. Examples include oracles (e.g., eOracle), proof verification (e.g., Aligned Layer), decentralized physical infrastructure networks (DePIN) (e.g., WitnessChain, OpenLayer), security monitoring (e.g., Drosera), or smart contract policy engines (e.g., Aethos).

• Coprocessors: Services that provide developers with cost-effective and verifiable off-chain computing power. Examples include database coprocessors (e.g., OpenDB), ZK coprocessors (e.g., Automata, Fairblock), trusted execution environments and cryptographic coprocessors (e.g., Automata, Fairblock), or AI reasoning (e.g., Ritual).

• Applied Cryptography: Services for creating strong cryptographic systems. Examples include fully homomorphic encryption (e.g., Fhenix), multi-party computation (e.g., Silence Laboratories), or threshold cryptography (e.g., Mishti Network).

• MEV Governance: An emerging service that allows block proposers to make additional trusted commitments on block inclusion and ordering.

Application Layer

On top of AVS, new on-chain applications are expected to emerge that leverage the unique economic security properties of EigenLayer.

Emerging examples include Rollups, Liquid Restaking Tokens (LRT) and related LRTFi applications (i.e., DeFi protocols that use LRT as underlying collateral), social and gaming applications, Decentralized Physical Infrastructure Networks (DePINs), and identity and privacy applications.

Future Outlook

As restaking and shared security models evolve, their impact on the blockchain ecosystem will become increasingly apparent. Growing demand from stakers and validators seeking to maximize yield potential and developers seeking to accelerate infrastructure-level innovation has the potential to unlock new opportunities on-chain. Additionally, while EigenLayer is the first project to launch a restaking protocol, similar mechanisms are emerging in other ecosystems: Bitcoin (e.g., Babylon Chain), Solana (e.g., Solayer, Cambrian, Fragmetric), IBC (e.g., Picasso Network), full-chain restaking (e.g., Exocore), and multi-asset restaking (e.g., Karak).

Nonetheless, while restaking and shared security models open up many exciting opportunities on-chain, restakers need to understand the risks that may arise, such as smart contract security risks or unexpected slashing events. It is worth noting that EigenLayer's slashing and payout (i.e., AVS rewards) mechanisms are planned to be launched in the future. Overall, Coinbase Ventures is excited about the potential of restaking and shared cryptoeconomic security.

FAQ

What is EigenLayer? What role does it play in the Ethereum ecosystem?

EigenLayer is an Ethereum protocol enabling ETH stakers to support ecosystem applications through re-staking. It enhances decentralized finance services and strengthens network security by allowing capital efficient participation in multiple validating services simultaneously.

What is AVS (Actively Validated Service)? What are the main projects in the EigenLayer AVS ecosystem?

AVS refers to systems requiring independent distributed verification, including sidechains, data availability layers, virtual machines, and bridges. Major EigenLayer AVS projects include leading infrastructure and security solutions across these categories.

What are the risks and rewards of participating in EigenLayer restaking?

Rewards include higher yields and protocol incentives from securing AVS networks. Risks involve smart contract vulnerabilities, slashing penalties, and technical failures. Returns vary based on validator performance and market conditions.

Coinbase这份研究报告的核心发现和结论是什么？

Coinbase报告指出，2026年加密市场从散户投机驱动转向机构参与与基础设施主导。核心发现包括：极端翻倍行情难再现，衍生品与风控取代叙事驱动价格；预测市场与稳定币跨境支付成增长支柱；机构资金与流动性成新定价机制。

What are the advantages and disadvantages of EigenLayer compared to traditional staking?

EigenLayer offers greater flexibility with multiple protocol choices and higher reward potential through restaking. However, it introduces complexity and additional risks compared to traditional staking's simpler, more straightforward approach.

How to participate in the EigenLayer ecosystem? What are the participation methods for individual investors?

Individual investors can participate in EigenLayer by staking ETH to earn additional rewards, or by building AVS services on the protocol. Stakers secure the network and earn yields, while builders create innovative applications within the ecosystem.

EigenLayer AVS生态的发展前景和市场规模如何？

EigenLayer AVS ecosystem is projected to reach approximately $10 billion market size within three years. It currently dominates the AVS market with strong growth potential, though future competition may emerge. The ecosystem outlook remains highly promising with expanding validator participation and diverse protocol applications.

EigenLayer's main competitors are?

EigenLayer faces competition from Symbiotic and Stakewise in the restaking sector. Both platforms offer similar services, competing for high-yield opportunities and validator participation in the AVS ecosystem.