Share this article
Staking Protocol EigenLayer Raises $50M Amid Crypto Winter
Blockchain Capital led the round for the system that allows Ethereum stakers to reuse the tokens.
By Brandy Betz
Updated May 9, 2023, 4:11 a.m. Published Mar 28, 2023, 4:00 p.m.
Make us preferred on Google
Staking protocol developer EigenLabs has raised $50 million in a Series A round led by Blockchain Capital. The funding comes as EigenLabs prepares to launch the initial version of its EigenLayer protocol in phases throughout the year. The size of the round is notable during a protracted crypto winter that has seen investors focusing more on smaller, early-stage rounds.
Seattle-based EigenLabs was founded in 2021 to address the issue that it’s difficult to improve blockchain infrastructure without launching a new blockchain and the so-called trust network that offers security for the chain.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
In September Ethereum shifted from a proof-of-work to a proof-of-stake consensus method, which replaced crypto miners with validators, or “stakers,” who lock up tokens within the network to help keep it secure in exchange for financial reward. EigenLayer allows users to “restake” tokens that are locked up to validate Ethereum so those tokens can be reused to help secure other protocols.
“One of the central bottlenecks to innovation in today’s crypto ecosystem is the requirement for projects to bootstrap trust, or cryptoeconomic security,” said EigenLabs founder and CEO Sreeram Kannan in the press release. “We started working on EigenLayer in the hopes of creating a new model in which developers can easily consume trust, instead of needing to build trust, and design powerful systems of assurances that make the crypto ecosystem safer and more useful.” .
Kannan is an associate professor at the University of Washington and runs the UW Blockchain Lab. The EigenLayer team has deep experience with tech companies, including Amazon Web Services, Meta Platforms (the former Facebook) and Microsoft.
Other backers in the round included Electric Capital, Polychain Capital, Hack VC, Finality Capital Partners, andCoinbase Ventures, among others. EigenLabs last raised funds in August with a $14.5 million seed round led by Polychain Capital and Ethereal Ventures.
Read more: What Ethereum Tech Trends Are Weathering the Bear Market?
More For You
Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.
What to know:
Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token.
The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.
More For You
World token jumps 27% as Sam Altman reportedly eyes a biometric social network to kill off bots
The WLD token surged after Forbes reported that Sam Altman's OpenAI is planning to use Worldcoin to fight bots online.
What to know:
- World’s WLD token jumped sharply on Wednesday after a Forbes report said Sam Altman’s OpenAI is exploring a biometric social network to combat online bots.
- The report said OpenAI has considered using Apple’s Face ID or World’s iris-scanning Orb device to verify human users, though no formal partnership between OpenAI and World has been confirmed.
- World Network, which has raised $135 million and says it has verified millions of people, is pitching its World ID system as a privacy-focused way to prove personhood online even as it faces regulatory scrutiny in countries such as Kenya and the U.K.
Top Stories
