🏙️Eigenpie Enterprise
Last updated
Last updated
As we forge ahead in the world of Restaking, we are proud to introduce Eigenpie Enterprise, our latest innovation designed to meet the specific needs of institutional clients around the globe. This new service underscores our dedication to the long-term development of the Ethereum ecosystem, highlighting our commitment to both innovation and our clients’ success in this evolving sector.
As institutional interest in decentralized finance grows, Eigenpie has crafted a specialized security-oriented framework that enables global companies and fund managers to access EigenLayer’s native restaking and LRT landscape without added risks. This innovative solution is designed to integrate institutional investors as enduring and engaged contributors within DeFi.
Restaking allows participants within decentralized finance to stake ETH on both the Ethereum blockchain and other systems simultaneously using EigenLayer technology. This can enhance their returns and support multiple services at the same time. There are two ways to benefit from restaking:
Native Restaking — Refers to the process of restaking ETH that is already staked directly on the Ethereum Beacon Chain to tap into new sources of yields through EigenLayer’s infrastructure.
Liquid Restaking — Refers to the process of restaking ETH LSTs. LRTs (Liquid Restaking Tokens) represent a liquid restaked version of ETH LSTs, which enable holders to expand their opportunities to earn rewards for their active participation from their native staked ETH, their liquid staked ETH, and further exploring benefits with their LRTs within the EigenLayer ecosystem. LRTs aim to enhance the utility of ETH while maintaining flexibility for investors.
Institutions need strategies that maximize their potential returns, manage risks effectively, and boost operational efficiency. Eigenpie Enterprise facilitates engagement on multiple services via restaking, thereby optimizing asset allocation and bolstering secure-centric, scalable investment strategies. As organizations integrate DeFi, they help blend blockchain technology with traditional systems. This development leads to more mature markets and wider adoption, allowing them to offer more innovative services.
Eigenpie has developed two solutions tailored for institutions to tap into Restaking Opportunities, depending on their specific requirements:
Eigenpie Enterprise version 1 allows institutions to mint Eigenpie LRT according to their position in EigenLayer.
No additional risk
The first solution presented by Eigenpie Enterprise allows institutional companies to safely engage with native restaking and Liquid Restaking (LRTs) in the EigenLayer ecosystem. Institutions can independently deposit into EigenLayer and then mint Eigenpie LRT tokens based on their position within EigenLayer. This process ensures that institutions can manage their investments directly, enhancing security and control over their financial activities in the ecosystem.
Capital Efficiency Enhancement
When institutions engage with LRTfi platforms like Zircuit and Swell L2, they can utilize strategies to benefit from extra yield by participating in LRTfi. These features are designed to enhance capital efficiency by providing additional avenues for generating returns.
Restake: An institution restakes ETH or a platform-specific LST into the EigenLayer smart contract. This deposit is a critical first step in minting Eigenpie LRT.
Whitelist: The institution must be whitelisted by Eigenpie, which involves undergoing a verification process, such as KYC checks, to be approved for minting operations, ensuring regulatory compliance.
Mint: After the deposit and whitelisting, the institution can invoke the mint function on the Eigenpie Contract, allowing for the creation of an Institution LRT Holding Contract and the minting of LRT according to the institution’s ETH/LST balance in EigenLayer to the Institution LRT Holding Contract.
Participate: These LRTs, received by institutions, are enabled to be utilized across whitelisted LRTfi platforms while their ETH or LSTs remain within the EigenLayer smart contract.
Withdrawal: Institutions can withdraw ETH or LSTs from EigenLayer, reducing the collateral that was backing some of its minted LRTs. The institution must notify Eigenpie15 days in advance before withdrawing.
Discrepancy Check: The system performs a check to detect any discrepancies between the amount of LRT held by the institution in their LRT Holding Contract and the actual balance of ETH/LST on EigenLayer.
Burning: If a discrepancy is found due to the withdrawal (e.g., excess LRT), a burning mechanism is triggered to destroy the excess LRT, ensuring the remaining LRT is properly backed by the actual collateral available. This maintains the integrity and value of the circulating LRTs.
In the version 1 setup of institutional services within Eigenpie, we’ve identified several risk factors that necessitate strategic measures to ensure stability and security. Given the ability of institutions to withdraw ETH/LST from EigenLayer at their discretion, it is imperative to restrict their participation in certain activities. Specifically, they should be prohibited from engaging in lending protocols that use LRT as collateral to prevent financial losses during liquidations, where they might withdraw their assets preemptively. Additionally, since EigenLayer points are directly credited to institutional wallets, we find it impractical for these entities to participate in the Pendle market, where transferring points to YT holders is necessary. For version 1, we will only whitelist Zircuit & Swell L2 pre-deposits at the beginning due to their lower-risk LRTfi opportunity, ensuring the highest safety and integrity for the Eigenpie ecosystem.
There is also a potential risk of institutions exploiting their positions to engage in “double spending” by using the same ETH/LST in multiple LRT projects. To address this, we are implementing legal agreements that ensure institutions only tokenize their EigenLayer position for one project at a time. This approach is solidified by the mint transaction from their wallets, serving as a verification mechanism, thus safeguarding the integrity of our platform.
The solution enables institutions to engage with native restaking and Liquid Restaking (LRTs) in the EigenLayer ecosystem safely by imposing specific restrictions on their participation in DeFi protocols and establishing binding legal agreements. These measures prevent institutions from tokenizing the same assets multiple times across different projects and limit their exposure to risky financial activities, effectively mitigating additional risks and safeguarding both the institution’s and the ecosystem’s financial health.
The first version designed to bring institutions into LRTFi limits their involvement with specific DeFi protocols, like lending services and Pendle Finance, to avoid possible bad debt. The first version makes it easy for institutions to get started with LRTFi without adding new risks. After they’ve joined and experimented with LRTFi, they can choose to migrate to version 2 by migrating their existing EigenLayer holdings from their EOA/Custodian wallet to the Eigenpie Institution Node Delegator, which comes with enhanced access controls. Institutions will be limited to withdrawing funds equal to their LRT balance, opening up additional DeFi opportunities, such as lending. In case of a liquidation that decreases their LRT balance, the institution will have to absorb the loss since they won’t be able to withdraw the full amount if their LRT isn’t sufficient. The Eigenpie Institution Node Delegator will be jointly controlled through a multisig between the institution and Eigenpie, ensuring complete control over their funds within EigenLayer. In exchange, the institution is allowed to deposit LRT into any DeFi protocols of their choosing.
Institutions benefit from increased DeFi opportunities through Eigenpie’s framework, which allows for engagement in native restaking and Liquid Restaking Tokens (LRTs) through a safety-focused environment, enhancing potential returns while maintaining rigorous security standards. This approach grants institutions greater control over their funds by enabling strategic asset allocation and optimizing capital efficiency. Additionally, the system fosters deeper integration into the DeFi ecosystem, allowing institutions to leverage their positions for increased rewards and broader market influence.
