Coinbase analysts David Hahn and David Duong explained the problems using the example of the EigenLayer restaking protocol, which allows clients to receive liquid tokens for providing decentralized active verification services by issuing derivative tokens.
According to analysts, the peculiarity of EigenLayer is that coins that can be placed on one network can then be placed again on another. This can increase profitability, but also increases the risk of loss.
Khan and Duong warned that if the queue to withdraw assets from staking increases, liquid tokens are likely to deviate from their original price.
Analysts recalled the statement of Ethereum co-founder Vitalik Buterin, who stated that a serious error in the restaking mechanism could jeopardize the entire basic Ethereum consensus protocol and lead to disruption of the network.
At the same time, Han and Duong indicated that the re-staking could lay the foundation for a new class of decentralized financial products on Ethereum.
Earlier, the chief financial officer of the American crypto exchange Coinbase, Alesia Haas, named the main reasons for the growth of the cryptocurrency market and spoke about its regulation. According to her, the Ethereum blockchain is the preferred platform for developing decentralized applications.
Source: Bits
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