Staking Protocol EigenLayer Raises $50 Million In New Funding Round
Blockchain Capital has led a Series A funding round for EigenLabs, a Seattle-based developer of a staking protocol that aims to tackle the challenge of improving blockchain infrastructure without launching a new blockchain.
A Noteworthy Achievement
EigenLabs has obtained $50 million, a noteworthy achievement amid a prolonged cryptocurrency winter that has led investors to concentrate on investing in smaller, early-stage startups. The funding round arrives as EigenLabs prepares to roll out its EigenLayer protocol’s first version before the year ends.
The EigenLayer protocol allows Ethereum stakers to reutilize tokens that have been locked up to help validate the network. The protocol will enable the utilization of these tokens to access other protocols, thus, avoiding keeping them locked up indefinitely.
In September 2022, Ethereum moved to a PoS (proof-of-stake) from a (PoW) proof-of-work consensus algorithm, replacing cryptocurrency miners with validators, also known as “stakers.” These validators secure tokens via the blockchain to assist in maintaining their security and earn financial rewards.
EigenLabs’ CEO and founder, Sreeram Kannan, noted in a press release that one of the principal barriers to innovation in the cryptocurrency ecosystem is the necessity for projects to bootstrap crypto-economic security. Hence, the team’s objective was to create a new model enabling developers to establish trust quickly rather than having to build it.
Also, it aims to build robust systems for assurance that would allow the cryptocurrency ecosystem to be more helpful and safer. Besides being an associate professor at Washington University, Kannan also heads the university’s blockchain lab.
The team at EigenLayer has considerable expertise working with technology companies, including Microsoft, Amazon Web Services, and Meta Platforms (previously Facebook). Other investors in the funding round included Polychain Capital, Electric Capital, Coinbase Ventures, and Hack VC, among others.
EigenLabs raised nearly $15 million in seed funding in August 2021, led by Ethereal Ventures and Polychain Capital.
Kannan Talks About Eigen Layer
Kannan’s research at Washington University (UW) has been about information theory, queuing theory, coding theory, game theory, distributed computing, and networking of blockchains. Eigen Layer is a validation marketplace based on PoS that reutilizes existing validation infrastructure and state capital.
This protocol enables Ethereum to facilitate modular innovation and permissionless access across every blockchain layer. In a recent interview, Sreeram discussed how he blends a layer of data availability with a re-staking app to achieve Eigen Layer goals.
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