EigenCloud (prev. EigenLayer)

EigenLayer began as a restaking protocol that allows ETH staked on Ethereum and liquid staking tokens to be reused to secure other services. The project was later positioned under the name EigenCloud as a broader platform covering verifiable compute and data services. EIGEN is the ecosystem token issued on Ethereum; a bridged version also exists on the Base network.

In the system, operators run actively validated services (AVS) on behalf of users who delegate restaked assets to them; in case of rule-breaking behavior, stake can be cut (slashing). EigenDA, developed by the team, is one of these services and offers data availability to rollups. What sets EIGEN apart from ETH is that it is designed to penalize faults that cannot be proven automatically on-chain but on which observers can agree; the token contributes to the security of services by being staked and is used in ecosystem incentives.

Factors that may affect the EIGEN price include the trend in the amount of assets restaked in the protocol, actual usage and fee generation by AVSs, concerns created by interconnected risks related to slashing, and token unlocks. The price shown on Lzzo.com is formed by converting the EIGEN/USDT pair on Binance into dollars at Coinbase Exchange's USDT/USD rate; the chart uses the same data.