• Ticker: EIGEN
• Network: Ethereum
• Category: DeFi
• Address: Etherscan

About EIGEN

EIGEN is the native token of EigenLayer, a permissionless restaking protocol on Ethereum. It allows users to re-stake ETH or liquid staking tokens (LSTs) to secure additional services called Actively Validated Services (AVSs), earning extra rewards. EIGEN serves as collateral for these AVSs, ensuring honest behavior—malicious actions can lead to penalties through an intersubjective forking process.
The token also powers governance, letting holders vote on protocol parameters such as slashing thresholds, AVS onboarding, and validation requirements. EigenLayer introduces shared security to Ethereum, aiming to expand its ecosystem by securing a variety of decentralized services beyond the Ethereum base layer.

Key Points of EIGEN

• Restaking innovation: Extends Ethereum security to third-party services (AVSs).
• Security collateral: AVSs bond EIGEN; dishonest behavior triggers slashing.
• Governance token: Holders vote on upgrades, slashing parameters, and AVS integrations.
• Ecosystem growth: Supports a modular marketplace of decentralized services leveraging Ethereum’s trust.

FAQ

1. What is EIGEN used for?
EIGEN is mainly used as collateral by AVSs to secure their operations, and as a governance token to influence protocol decisions. Unlike ETH, it’s not a primary staking token but complements Ethereum’s security layer.

2. How does EigenLayer work?
EigenLayer enables restaking, where ETH or LSTs already staked on Ethereum are reused to secure AVSs. This shared security model lets services benefit from Ethereum’s trust without creating their own validator sets.

3. Why is EIGEN important?
It enables modular security for Web3, allowing innovation without bootstrapping new networks. By aligning incentives among AVSs, stakers, and token holders, it strengthens Ethereum’s security moat.

4. Does EIGEN offer rewards to holders?
Currently, EIGEN holders can participate in governance, but rewards are tied to AVSs and staking services rather than simply holding the token. Future incentive mechanisms may evolve.

5. Is EigenLayer risky to use?
Yes. Misbehavior by AVSs or stakers can lead to slashing of bonded tokens. Also, as a governance token, its value is subject to market volatility and protocol adoption.

6. How can I buy EIGEN on Bitso?
Buying EIGEN on Bitso is simple:

1. Log in to your Bitso account or sign up if you don’t have one.
2. Go to “Buy/Sell” and select any of your available fiat currencies (MXN, ARS, BRL, COP, or USD) as your base.
3. Choose EIGEN as the token you want to purchase.
4. Enter the amount, review the details, and confirm your transaction.
5. Track the token’s performance directly in the app.

Note: EIGEN is only available through conversions on Bitso. It is not supported on Bitso Alpha, and deposits/withdrawals from external wallets are disabled. However, you can send and receive EIGEN between Bitso users via Bitso Transfer.

Example of How EIGEN Is Used

Sofia holds ETH and wants to earn additional rewards without unstaking it. She uses EigenLayer to restake her ETH, securing a new AVS while earning extra incentives. Additionally, she buys some EIGEN tokens on Bitso to participate in governance, voting on key protocol decisions that shape the future of the EigenLayer ecosystem.

Disclaimer

EIGEN is a governance and collateral token tied to the EigenLayer restaking protocol. It carries risks, including market volatility, governance uncertainty, and potential slashing of bonded tokens. This article is for informational purposes only and does not constitute financial advice. Bitso encourages users to conduct their own research (DYOR) before buying, selling, or holding any digital asset.