Glossary
Key Terms:
Cryptoeconomic security: A security model that uses economic incentives and cryptography to ensure the proper functioning and security of a network.
Service Modules, Services, or Actively Validated Services (AVS): Any system that requires its own distributed validation semantics for verification, such as sidechains, data availability layers, new virtual machines, keeper networks, oracle networks, bridges, threshold cryptography schemes, and trusted execution environments.
Pooled security via restaking: Pooled security is when multiple parties combine their resources to provide greater security for a system. In EigenLayer, Ethereum stakers can “restake” their ETH or Liquid Staking Tokens (LST) by opting into new services built on EigenLayer.
Free-market governance: EigenLayer provides an open market mechanism that allows stakers to choose which services to opt into, based on their own risk and reward analysis.
Liquid Staking: A service that enables users to deposit their ETH into a staking pool and receive a liquid staking token. This token represents a claim on their ETH and its staking yield. Liquid staking tokens can be traded in the DeFi ecosystem and redeemed for their underlying ETH value after a waiting period.
Native Restaking: A method where Ethereum stakers restake their staked ETH natively by pointing their withdrawal credentials to the EigenLayer contracts.
LST Restaking: A method where LST holders restake their Liquid Staking Tokens (LSTs) by transferring them into the EigenLayer smart contracts.
Delegation on EigenLayer: A feature that allows restakers holding ETH or LSTs to delegate their assets to other entities who will operate off-chain software containers of service modules built on EigenLayer, rather than operating the software themselves.
On-chain slashing contract: A smart contract deployed by service modules on EigenLayer that enforces slashing, specifying, and penalizing any misbehavior.
EigenPod: A contract that is deployed on a per-user basis that facilitates native restaking.
Liquid Restaked Tokens (LRTs): such as inETH, operate as synthetic tokens layered atop your restaked assets. This function enables simultaneous, straightforward access to both restaking and decentralized finance.
Operators: In the EigenLayer ecosystem, operators are in charge of managing the technical infrastructure required for network validation and security. They run and maintain restaking nodes, and their reliability and performance have a direct impact on the Eigenlayer ecosystem’s security and efficiency
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