What Is an AVS?
An Actively Validated Service (AVS) is any protocol that uses EigenLayer's restaked capital for security. Instead of bootstrapping their own validator set, AVSs rent security from Ethereum's restakers.
Why AVSs Matter
New protocols face security bootstrapping problems:
- Need tokens for staking
- Token may be worthless initially
- Chicken-and-egg problem
AVSs solve this by borrowing Ethereum's security through EigenLayer.
Types of AVSs
- Oracles: Price feed networks
- Bridges: Cross-chain messaging
- Rollups: Sequencer/validator networks
- Data Availability: DA layers
- Coprocessors: Off-chain computation
Example AVSs
- EigenDA (data availability)
- Hyperlane (messaging)
- Lagrange (ZK coprocessor)
- Various oracle networks
Economics
AVSs pay restakers for security through:
- Token emissions
- Fee revenue
- A combination
Restakers earn these as additional yield on top of ETH staking.
Risks
AVS misbehavior can lead to slashing of restaked capital. Operator selection and AVS quality matter.