EigenLayer adds key 'cut' functionality, completing the original vision

EigenLayer introduces the important 'slashing' feature, completing the original concept

A year after the launch of its restaking protocol, Ethereum is implementing a vital accountability measure aimed at addressing remaining security issues.

Sam Kessler | Edited by Nikhilesh De Updated April 17, 2025, 2:18 PM Published April 17, 2025, 1:00 PM

Key points:

• EigenLayer, the well-known Ethereum restaking protocol, is launching its previously missing “slashing” feature on Thursday.
• Slashing penalizes operators who act maliciously, which increases the security and accountability of the proof-of-stake mechanism.
• EigenLayer currently protects over $7 billion in redistributed assets across 39 actively audited services.
• The redesigned slashing system aims to reduce the systemic risks previously associated with the EigenLayer pooled staking model.

Almost a year after the launch of the Ethereum protocol, EigenLayer, which made a major splash in the industry with the launch of its “re-sharding” network, is finally adding a major feature that has been conspicuously missing until now: “slashing.”

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Eigen Labs hopes that slashing—the EigenLayer system that allows “reinsurers” to keep their collateral honest by revoking collateral in the event of malicious activity—will finally bring to fruition the original protocol concept proposed a year ago.

“We are pleased to report that all promises have been fulfilled,” said EigenLayer founder Sriram Kannan.

EigenLayer became one of the most talked about protocols in Ethereum history when it introduced investors to the idea of re-staking, an evolution of proof-of-stake on Ethereum.

Ethereum’s proof-of-stake system allows users to “stake” ether (ETH) collateral on the blockchain to run and secure it in exchange for interest. EigenLayer allows users to stake ETH on Ethereum and then re-stake it with other protocols to earn even more interest.

Despite launching its mainnet last year, slashing, a key element of EigenLayer's overall security system, remained missing until Thursday, prompting criticism that EigenLayer's ambitious plan was out of sync with its technical reality.

To date, EigenLayer boasts over $7 billion in redistributed assets, making it one of the largest decentralized finance (DeFi) applications. The protocol also supports an ecosystem of 39 actively audited services (AVS) that use its security model.

The new slashing system will go live on Thursday, but AVS teams will need to register, meaning it may be some time before slashing is live in any apps. Eigen Labs previously announced April 17 as the launch date for slashing.

Redesign for improved security

EigenLayer users re-stake Ether (ETH) and other tokens through third-party “operators” – infrastructure providers who delegate their pooled deposits to EigenLayer through various AVSs.

Operators who delegate their stake to AVS help manage it in exchange for a reward: the more they stake, the higher the reward.

In theory, slashing ensures that these operators are using AVS correctly. If the operators “prove themselves malicious according to the Ethereum contract on the chain, they could lose their stake or part of their stake,” Kannan said.

When on Thursday

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