Tuesday, September 26, 2023

Staking Protocol EigenLayer Raises $50M Amid Crypto Winter

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Staking protocol developer EigenLabs has raised $50 million in a Collection A spherical led by Blockchain Capital. The funding comes as EigenLabs prepares to launch the preliminary model of its EigenLayer protocol in phases all year long. The scale of the spherical is notable throughout a protracted crypto winter that has seen traders focusing extra on smaller, early-stage rounds.

Seattle-based EigenLabs was based in 2021 to deal with the problem that it’s tough to enhance blockchain infrastructure with out launching a brand new blockchain and the so-called belief community that provides safety for the chain.

In September Ethereum shifted from a proof-of-work to a proof-of-stake consensus methodology, which changed crypto miners with validators, or “stakers,” who lock up tokens inside the community to assist maintain it safe in change for monetary reward. EigenLayer permits customers to “restake” tokens which are locked as much as validate Ethereum so these tokens will be reused to assist safe different protocols.

“One of many central bottlenecks to innovation in immediately’s crypto ecosystem is the requirement for initiatives to bootstrap belief, or cryptoeconomic safety,” mentioned EigenLabs founder and CEO Sreeram Kannan within the press launch. “We began engaged on EigenLayer within the hopes of making a brand new mannequin wherein builders can simply eat belief, as a substitute of needing to construct belief, and design highly effective programs of assurances that make the crypto ecosystem safer and extra helpful.” .

Kannan is an affiliate professor on the College of Washington and runs the UW Blockchain Lab. The EigenLayer staff has deep expertise with tech corporations, together with Amazon Internet Providers, Meta Platforms (the previous Fb) and Microsoft.

Different backers within the spherical included Electrical Capital, Polychain Capital, Hack VC, Finality Capital Companions, andCoinbase Ventures, amongst others. EigenLabs final raised funds in August with a $14.5 million seed spherical led by Polychain Capital and Ethereal Ventures.

Edited by Stephen Alpher.

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