Key Points:
- EigenLayer, an Ethereum restaking protocol that has yet to deploy, is raising $50 million in a Series A fundraising round.
- When the Series A round is finished, EigenLayer’s total funding will be roughly $65 million.
EigenLayer, an Ethereum restaking protocol that has yet to deploy, is raising $50 million in a Series A fundraising round, according to The Block and two persons familiar with the situation.
According to the sources, the round will provide EigenLayer with a $250 million post-money equity valuation and a $500 million token valuation or fully diluted valuation (FDV). The total value of a project assuming all of its tokens are in circulation is referred to as FDV.
According to three distinct sources, the fundraising process began prior to the November collapse of the crypto exchange FTX and is likely to be completed soon.
EigenLayer was developed in 2021 by Sreeram Kannan, an assistant professor at the University of Washington in Seattle who directs the information theory lab, which focuses on information theory and its applications in communication networks, machine learning, and blockchain systems.
EigenLayer is based on Ethereum and allows users to withdraw their ether (ETH) and expand crypto security to new network applications including as rollups, bridges, and oracles.
According to a pitch deck from EigenLayer, the startup’s technology allows stakers to opt-in to subject their ETH to greater slicing risk for safeguarding Ethereum ecosystem services.
Restaking is comparable to liquid staking in certain ways. However, unlike liquid staking, which provides an investor with a token reflecting their staked ether, restaking enables them to use their staked ether to secure other protocols.
Restaking also provides Ether stakers with new reward options. Users essentially earn passive rewards on their extended capital by subscribing to a restaking contract.
When the Series A round is finished, EigenLayer’s total funding will be roughly $65 million. According to PitchBook data, the project has already raised $14.4 million in funding from investors such as Figment Capital.
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