Ethereum restaking protocol EigenLayer is raising $50 million

Quick Take

  • EigenLayer, an Ethereum restaking protocol, is raising $50 million in Series A funding, sources tell The Block.
  • The round looks set to give the startup a $250 million post-money equity valuation and a $500 million token valuation.

EigenLayer, an Ethereum restaking protocol that is yet to launch, is raising $50 million in a Series A funding round, two sources with knowledge of the matter told The Block.

The round looks set to give EigenLayer a $250 million post-money equity valuation and a $500 million token valuation or fully diluted valuation (FDV), the sources said. FDV refers to the total value of a project assuming all of its tokens are in circulation.

The fundraising process began prior to November's collapse of crypto exchange FTX and is expected to be finalized soon, according to three separate sources. EigenLayer didn't respond to a request for comment.

EigenLayer was founded in 2021 by Sreeram Kannan, an assistant professor at the University of Washington, Seattle, where he runs the information theory lab focusing on information theory and its applications in communication networks, machine learning and blockchain systems. 

Ethereum restaking


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EigenLayer is built on Ethereum and enables users to restake their ether (ETH) and extend crypto security to additional applications on the network, such as rollups, bridges and oracles. A pitch deck prepared by EigenLayer and obtained by The Block states that the startup's technology "enables stakers to opt-in to subject their ETH to additional slashing risk for securing Ethereum ecosystem services."

Restaking has some similarities with so-called liquid staking. But while liquid staking gives an investor a token representing their staked ether, restaking allows them to use their staked ether for securing other protocols.

Restaking also opens up additional reward opportunities for ether stakers. "By opting in to a restaking contract, users effectively earn passive rewards on their extended capital," ConsenSys explained in a recent blog post on EigenLayer. "Moreover, the same capital investment that is otherwise locked on ETH with a single revenue stream can now be rehypothecated to additional protocols, each with their own system of rewards."

The Series A round, once completed, will bring EigenLayer's total funding to around $65 million. The project has previously raised $14.4 million in funding from investors including Figment Capital, according to data from PitchBook.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Authors

Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.
Ryan Weeks is deals editor at the The Block, focused on fundraising, M&A and institutional trends in the crypto space, among other things. He is particularly interested in investigative work — so please send tips! Ryan previously worked at Financial News, Dow Jones as a fintech correspondent in London. Prior to that, he wrote for several different publications, including Sifted, AltFi and Wired. Beyond journalism, Ryan is a keen reader and writer. He enjoys all things active, especially running, rugby, climbing and tennis.


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