EigenLayer has launched its slashing testnet on December 20, 2024, with future plans for a mainnet launch contingent upon the approval of EigenLayer Improvement Protocol-002 (ELIP-002).

The upcoming slashing upgrade will introduce Unique Stake Allocation for node operators and Operator Sets for Actively Validated Services (AVS) on EigenLayer.

Unique Stake Allocation will allow restaking operators to minimize slashing risks by designating portions of their staked funds for specific AVS tasks, thus protecting their capital from unrelated slashing events.

Operator Sets will enable AVS to organize operators into groups, assign specific tasks, and define slashing parameters.

EigenLayer is actively focused on onboarding more AVS and consumer crypto applications to enhance its restaking protocol.

RedStone has emerged as the first major oracle provider to establish an AVS on EigenLayer, currently operating in testnet mode.

Infura has announced its plans to launch as an AVS on EigenLayer, which will bolster its Decentralized Infrastructure Network (DIN) for Web3 developers.

Actively Validated Services leverage the security of the Ethereum layer-1 network to validate offchain services, enhancing overall network integrity.

The slashing mechanism serves to penalize validators or restaking operators for errors or dishonest behavior by deducting a portion of their staked funds, thereby ensuring onchain integrity.

Currently, EigenLayer boasts approximately $15.4 billion in total value locked, according to data from DefiLlama.

Looking ahead, EigenLayer plans to upgrade restaking rewards in January 2025, enabling AVS to distribute rewards to operators based on their performance.

Staked Ether (stETH) functions as staking collateral across various blockchain ecosystems without necessitating the unstaking of the asset on Ethereum layer-1.