Coinbase Analyst: Ethereum EigenLayer Refactoring Protocol Hidden Security and Financial Risks
Coinbase analysts David Han and David Duong revealed the hidden security and financial risks in the Ethereum EigenLayer reconstruction protocol. EigenLayer allows validators to earn extra rewards or LRT by participating in active verification services (AVS). While the protocol can park assets and increase revenue, it also increases risks. Analysts also emphasized the potential of the protocol in promoting Ethereum innovation and infrastructure development.
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