AVS

seanmg

If you want to call something Crypto then every layer of your "advanced tech" needs to be decentralized, including all of the Band-Aids slapped on top of the core ETH layer. \*spoiler: EigenLayer is not decentralized.\* |Bottleneck|Why it’s centralized now|Road-map status| |:-|:-|:-| |**Disperser (blob uploader)**|A single permissioned service aggregates transactions and pays gas, handling metering & billing. |Docs and blog note “decentralised dispersers” are on the roadmap; rollups will be able to run their own side-car disperser. | |**Operator onboarding**|Operators are still added via EigenLabs’ allow-list to control quality & capacity. |The team says permissionless registration is “next milestone” once slashing & payment logic harden.| |**Governance / upgrades**|Core contracts are upgradeable by EigenLabs multisig. |Plan is to migrate to an on-chain governor once the AVS market stabilizes.|

Blocks_and_Chains

Round 3 of the AVS Showdown for projects in the Eigen Layer ecosystem is now live on Jokerace. Cast your vote for Cartesi to win EIGEN and CTSI rewards (Cartesi will distribute an additional $5,000 to the winners if they win!) Vote here: https://jokerace.io/contest/base/0x78140f7bec98497644cec2b4f6722ec8da9eb032

aminok

You don't have to buy the EIGEN token to use EigenLayer's AVS.

aminok

EigenLayer is the fastest growing ecosystem in the blockchain space, according to the Electric Capital report: [https://x.com/MariaShen/status/1867295798960304361](https://x.com/MariaShen/status/1867295798960304361) EigenLayer introduces the concept of Activately Validated Services (AVS), which are services that leverage opted-in Ethereum Proof of Stake validators for security, while independently running all other aspects of their blockchains. Eigenlayer enables ETH to become the Schelling point for blockchain security, by leveraging Ethereum's massively capitalized and decentralized Proof of Stake network, and the Ethereum Virtual Machine's computational versatility. To put it another way, AVS make it possible for ETH to go from being the monetary asset of only the Ethereum blockchain to being the universal monetary asset of the entire blockchain system. https://i.redd.it/o4pbbn2k0j6e1.gif

MaximumStudent1839

> But I've noticed that some high market cap alts like XRP, SOL and BNB have reached ATH before ETH did. Everyone thought exactly like you did, so they positioned themselves with this knowledge during the bear market. You can see plenty were aggressively buying ETH during the bear and got underpositioned in BTC and Alts. Bankless convinced whales, ETH won the L1 war and all alt L1s are dead. And ETH was going to flip BTC. In that narrative, the new "alt L1s" are supposed to be ETH L2s and the Eigenlayer AVS. Here is the kicker. If you hold ETH, you don't even need to buy these new alt L1s. You can just farm them with your ETH stack. People got overconfident in their positioning in ETH. They thought, that even if alts were to rally, it would happen after ETH reaching ATH. So it gives them time to sell ETH and reposition. The reality is a bitter truth. Institutional demand for BTC has shown to be big. ETH ETF was initially delayed. And BTC ETF ran hard. There was no new capital to peg ETH to BTC. So traders started to rotate aggressively from ETH to BTC. This caused the first prong of selling pressure on ETH. Back last year, I said SOL would reach ATH before ETH here in this subreddit. Everyone downvoted me to hell. It shows how this space is overallocated on ETH and ppl are extremely oversensitive about that possibility. Anyway, it boils down to a few factors of not enough demand. 1) ***The first was, that ETH lost its old catalysts***, e.g. Web 3, gaming, NFTs, etc. Last cycle, a lot of its catalysts were funded by ETH holders getting extremely wealthy from the 2020/2021 run. Most have lost a significant part of their wealth to rugs and influencers. Many are also traumatized by the experience and have severe PTSD. So even if they make money, they would severely underallocate compared to before. This cycle, ETH started as a multi-billion dollar market cap asset. It can't generate the same level of wealth effect for new participants as before. Those who preserved their wealth from the last cycle and got rich from ignoring Web 3, gaming, and NFTs have no reason to change their minds now. So you can't replicate the old flywheel at the same scale. 2) ***A lot of ETH maxis and VCs think ppl aren't sensitive to gas prices***. Well, the reality is, that they are sensitive to ETH fees. Making the ETH number go up doesn't change their price sensitivity. The idea that ppl are more willing to gamble their wealth away at higher gas fees if the ETH price goes up is insane. There is the argument, ppl should use L2s. If you want them to move to disparate L2s, they might as well move to an alt L1. Why? There is a closer alignment between the base asset they hold and the success of the chain. 3) ***This "ETH is money" narrative is ultra cringe and stupid.*** Why is it "stupid"? It is how the ETH devs approached the problem. They think they can engineer "better money" than Bitcoin. The reality is, that crypto mfers don't think cryptos are actual currencies. They call it "money" whatever they can't pin down a good name for it but its fiat price number to go up. It is a fucking meme! You can't use technology to engineer a better meme. Justin Drake likes to make fun of Bitcoin as a "useless pet rock". Yet he keeps advocating ETH to take over Bitcoin as "money". The dude is so clueless. In an interview, Michael Saylor doesn't call Bitcoin "money". The marginal buyers for BTC aren't going after tech but going after a resilient and indoctrinated social network perceiving BTC as the best "number goes up" device. The moral of the story is, much of the ETH community is building in an echo chamber and they don't give a fuck about others' opinions. Now ETH is lagging because ppl are using ETH rallies to rebalance their portfolio out of the ETH ecosystem. That is where a lot of selling pressure is coming from. But ETH doesn't have the old buying pressure catalyst to push it up like before. XRP and SOL outperformed in large part because traders were overly bearish on them and were underallocated on them. BNB has the catalyst of ppl buying it to farm token launches on Binance CEX.

coinfeeds-bot

tldr; Consensys' Infura has announced its Decentralized Infrastructure Network (DIN) will launch as an Actively Validated Service (AVS) on Ethereum's EigenLayer. This move aims to enhance the Web3 infrastructure by leveraging Ethereum's economic security, reducing development costs, and improving service reliability. DIN serves as a decentralized API marketplace for blockchain infrastructure, operating across multiple networks. The integration with EigenLayer is expected to scale the marketplace, increase reliability, and reduce costs for Web3 development. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

AustinAtKraken

Pasted from my other answer: "Restaking comes with the same risks as standard ETH staking, as well as smart contract risk and 3rd party AVS (actively validated services) protocol risk. Currently ETH Restaking through Kraken validates one AVS - EigenDA, developed by EigenLabs. As always... do your own research to see if restaking is right for you."

AustinAtKraken

Copied from my other answer : "Restaking comes with the same risks as standard ETH staking, as well as smart contract risk and 3rd party AVS (actively validated services) protocol risk. Currently ETH Restaking through Kraken validates one AVS - EigenDA, developed by EigenLabs. As always... do your own research to see if restaking is right for you."

AustinAtKraken

You can earn both standard ETH staking rewards, as well as AVS / EIGEN rewards for restaking

AustinAtKraken

Rewards are paid weekly - so if you don’t want to hold EIGEN / AVS tokens, they can be sold into other assets

AustinAtKraken

ETH Restaking involves multiple types of rewards. Rates will vary over time - based on the volume of assets being staked in Ethereum, volume of assets restaked in the EigenLayer protocol, and overall value of rewards being issued. Reward types include: 1) standard ETH staking rewards 2) AVS (Actively Validated Services) Rewards in the form of ERC-20 tokens, granted individually by each AVS to restakers 3) EigenLayer’s Programmatic Incentives, granted directly to restakers by the Eigen Foundation, in the form of EIGEN token To see current reward rates, go into Kraken Pro, navigate to Earn, and select the Bonded Restaking option for ETH (availability subject to geo restrictions)

AustinAtKraken

1. We use EigenLayer’s Native Restaking process, which means we spin up active Ethereum validators (similar to standard ETH staking) and point their withdrawal credentials to a smart contract called an EigenPod. The EigenPod lets us manage validator balances to secure 3rd party AVSs (actively validated services). 2. Restaking comes with the same risks as standard ETH staking, as well as smart contract risk and 3rd party AVS (actively validated services) protocol risk. Currently ETH Restaking through Kraken validates one AVS - EigenDA, developed by EigenLabs. As always... do your own research to see if restaking is right for you.

MaximumStudent1839

Symbiotic’s current TVL is still predominantly LSTs. They said they promise to do all “kinds of tokens”. But it is still LSTs mainly. Crypto is a buzzword cesspool. As soon as one big project makes a big splash on some marketing term, every other startups want to ape into it because VCs like to do group think. But it doesn’t mean they are right. The space’s history proves 99% don’t care about being right, only about whether they can make money. The idea of “rehypothecating” economic security goes beyond proof of stake. In fact, the earliest iteration happened under PoW and it was called merge mining, .e.g LTC and Dogecoin. No one called it “restaking” back then. It is really a term pushed by Eigenlayer and then furthered by industry pushing for the narrative of AVS etc.

Lillica_Golden_SHIB

Another Hyperlane innovation, Hyperlane's AVS (Actively Validated Service) module built atop EigenLayer. Will EigenLayer stakers and point holders get a share of it? I had always thought EigenLayer would end up as an infrastructure play, maybe such as Celestia, bullish

RockTheBlockchain

The same risks as staking where if an operator acts maliciously (double signing for example) then tokens will get slashed. But unlike normal staking, the slashing mechanics for restaking is completely determined by the AVS, not the underlying L1 (if applicable for that restaking solution). For operators, one of their responsibilities before securing an AVS is to review their slashing mechanics to determine if it’s clear and reasonable. That’s just one of several factors operators should consider before deciding to secure an AVS. I can dig deeper and ask some of the engineers working on the restarting protocol for more detail if you’d like.

Extra-Dentist-3878

Awesome explanation, thanks. Do you know about the AVS/operator communication protocol technical details?

pagan-daniel

Restaking is primarily to provide security to off-chain applications. On-chain applications already inherit the crypto-economic security from the L1 or L2 they’re on, but off-chain applications don’t inherit this. They don’t benefit from the security provided by staked tokens. So with restaking, you’re basically extending the security of a blockchain to applications like oracles and bridges. With single chain restaking like EigenLayer or Babylon, it extends the security of one chain to those off chain applications. With omnichain restaking like Exocore, it aggregates security from multiple chains and extends it to off chain apps. Those off chain apps are known as AVSs in the restaking world. The AVSs define the rewards they’re willing to offer to operators who secure them. Those rewards go to operators who opt into the AVS which are then given to restakers as yield. HTH

MaximumStudent1839

Negligible. There is hardly any profitable AVS. The real yield is coming from farming these restaking protocols.

MaximumStudent1839

> What you’re “tired of” is not making any money off of them. What a presumptuous comment. I have been complaining about this since the bear - when no one is making any money. There are barely any new product and there is an infinite infra spin. > Largely because (mainly US) regulators have locked you out of early investing in them. WTF are you on about? Do you think the US opening up ICOs means ppl can get VC deals? LOL! The best deals often have founders selectively choosing their participants, even among the "accredited investors". >  There is no shortage of infrastructure/ That is the biggest problem. Infinite infra for infinite infra sake is one of the core issues here. There are more gaming chains than "crypto games" with a pop count of 200 ppl on Epic Store. There are more generic L2s than new innovative dapps. > Look at eigenlayer.  Oh wow, we are all going to fall over our feet for restaking, AVS for more infra nonsense, an "ETH aligned" DA, etc. Besides the grandiose nonsense narrative pushed by the ETH maxi camp that eigenlayer is "innovative", ppl can still make money by farming it via restaking your LSTs. So no, even your strawman argument of "not making" money makes no sense in this instance. >...complicated things aren’t happening under the surface. You just brought up the old "accredited investor" issue to farm up a weak strawman argument response.... and you can that complicated lol wtf.

MaximumStudent1839

It is a permissionless system and the entire ecosystem, including Coinbase, advertise the industry as get rich quick and easy. I mean, Coinbase was even reaching out to ETH shitcoin KOLers to get ppl buy lame memes on Base, aka the “Base” season. At this point, I am not going to blame critics being wrong. It is obvious this entire industry is rotten from the very top. You can tell from the infinite spam of generic L2s with ridiculous FDVs and hardly any product differentiation, now the obsession to make L3+s, infinite spam of DEXs, another three million DA layers and AVS providers, etc. All I see is a massive liquidity black hole suck. At least with memes, you can get a good laugh from it. Also don’t blame memes for devs failure. The vast majority of them have a CV of a monkey poop. They won’t have anything to stand out in their GitHubs and LinkedIn profiles. So they are probably not going to land a dev job irl. I had been diligently trying all “new” different products, from gaming to SocialFi, or whatever bozo name they want, throughout the bear market. It was at least half a year before Solana memes took the scene. Nearly all of them are utter garbage and just repackaging the old Ponzi games in one way or another. Honestly, it was really the meme and pure gambling scene that showed most of the innovation. It was why shit like RollBit and the hamster racing took off - even though the latter was just a scam.

Sizododayladyyu

According to my research, it's not live yet. However, its decentralized protocol is designed to foster a symbiotic relationship among stakers, Node Operators, and Actively Validated Services (AVS).

tsurutatdk

Is this live? Majority of these apps have yet to go live. I think Eigenlayer AVS just went live yesterday or so. I kind of like the concept. Eth holder will benefit the most.

sendappreciateit

Algovest. AVS. Algovest.fi Senderon on cryptopia And then there is the British one. I have wasted too much money on bullshit

Mysterious-Sky-9944

AlgoVest (AVS) is a multi-DeFi-utility and deflationary cryptocurrency that derives its value from an underlying treasury powered by a disruptive AI algovest.fi

Mysterious-Sky-9944

AlgoVest (AVS) is a multi-DeFi-utility and deflationary cryptocurrency that derives its value from an underlying treasury powered by a disruptive AI algovest.fi

GrrasssTastesBad

Check out AVS and their USDC staking. They make money via a forex trading bot, and not just random crypto staking and burns. They bit has been running for 3 years already, but are atrocious at marketing.

GrrasssTastesBad

Check out AVS and their USDC staking. They make money via a forex trading bot, and not just random crypto staking and burns.

GrrasssTastesBad

AVS:USDC staking. It gets a 60% return for a 6 month lockup, and it gains returns via a forex trading bot—completely separate from the crypto market.