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How Eigen Layer Works:

  1. Staking:

    • Users stake their assets on a primary blockchain (such as Ethereum) in a typical staking mechanism.

  2. Restaking Process:

    • The same staked assets are then utilized to secure additional protocols through the Eigen Layer.

    • This involves a restaking contract that manages and allocates the staked assets to various protocols in need of security.

  3. Protocol Integration:

    • dApps and protocols integrate with Eigen Layer to tap into the security provided by the restaked assets.

    • This integration can be seamless, leveraging the modular nature of Eigen Layer.

  4. Rewards Distribution:

    • Stakers earn rewards from multiple protocols, proportionate to the security they provide to each.

    • The rewards are distributed based on the contribution of each staked asset to the security of the integrated protocols.

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