igenLayer is a protocol built on Ethereum that facilitates "restaking collectives". This novel concept allows stakers to direct their staked ETH toward supporting specific applications and functionalities within the blockchain ecosystem. Rather than solely securing the Ethereum network through traditional staking methods, EigenLayer creates a dynamic marketplace where stakers and developers can mutually benefit.

A banner where Eigen Layer is written
A Guide to EigenLayer Airdrop

How Does it Work?

The protocol introduces "modules" as the building blocks. Modules represent services that could use additional validation, like decentralized storage or identity solutions. Stakers can choose to allocate a portion of their staked funds toward these modules through specialized smart contracts.

Once staked to a module via an EigenLayer contract, the ETH is still securing the Ethereum network through proof-of-stake. However, it also sets conditions to validate transactions and operations related to that particular module.

This modularity is advantageous for both parties. Developers can access a pool of trusted validators without needing to build custom infrastructure. Meanwhile, stakers can diversify their participation across modules that align with their goals and risk tolerance.

When contributing to modules, stakers have two primary options - they can run a node directly through "solo staking", or delegate stakes to other participants. Solo staking requires more technical skills to validate transactions, whereas delegation is ideal for those simply wishing to support their favorite modules.

With a successful $50 million Series A funding round led by top investors, EigenLayer is garnering significant attention as a promising innovative solution in the Ethereum staking space. Additionally, Andreessen Horowitz has invested $100 million into EigenLayer in a massive Series B funding round. 

Getting Involved in the Testnet

While the protocol remains in testnet phase and token distribution details have yet to be confirmed, now is a prudent time for the curious to explore its restaking marketplace firsthand.

To start participating, the first step is ensuring MetaMask is set up to connect your wallet to the EigenLayer testnet. From there, you can begin restaking test ETH to experimental modules and gaining familiarity with its core concepts and workings.

Step 1: Acquire Goerli ETH (gETH)

We'll need some gETH, the Goerli version of Ether (ETH), to participate in this airdrop. 

There are a few options:

Visit the Alchemy faucet at http://goerlifaucet.com. This requires making an Alchemy account first.

Website showing Ethereum Goerli Faucet
Ethereum Goerli Faucet

Or, visit https://faucet.quicknode.com/drip  to get tokens from their multi-chain faucet - no account needed.

Image showing multichain faucet
Quicknode - Multichain Faucet

Step 2: Swap for rETH on Uniswap

Now, swap your gETH for Rocket Pool's rETH tokens. 

Head to http://app.uniswap.org  and connect your wallet set to the Goerli testnet. 

Website interface of Uniswap

From there, you can find rETH by searching the name (rETH) or entering its contract address - 0x178E141a0E3b34152f73Ff610437A7bf9B83267A 

Swapping GETH to RETH on Uniswap
Swapping gETH to rETH

swap your gETH. 

Step 3: Stake rETH on Rocket Pool

With rETH in your wallet, go to https://testnet.rocketpool.net/  to interface with their decentralized liquid staking protocol. 

Website of RocketPool

Connect your wallet and you'll see your rETH balance. 

Simply stake it here to participate.

Step 4: Get some stETH

Open your MetaMask wallet and click on the "Send" option.

In the "Send Asset" field, paste or manually enter this address: 0x1643E812aE58766192Cf7D2Cf9567dF2C37e9B7F.
This is the smart contract address that will deploy your ETH to the Beacon Chain and issue the corresponding stETH tokens

Metamask Extension Interface

Enter the amount of ETH you'd like to deposit. Keep in mind this is a testnet, so feel free to send a smaller amount like 0.01 ETH.

Review the transaction details on the next screen. 

Make sure the asset being sent is ETH. Then click "Confirm".

The transaction will be sent to the network. In a few minutes, you should see stETH tokens appear in your wallet in place of the ETH you just deposited. These stETH represent your share of staked ETH on the Beacon Chain.

Step 5: Earn Rewards on EigenLayer

Finally, send your received stETH to EigenLayer's testnet at 0x1643E812aE58766192Cf7D2Cf9567dF2C37e9B7F. 

Then head to http://goerli.eigenlayer.xyz to stake stETH and earn rewards for interacting with their protocols.

Step 6: Restake Weekly for Rewards

Airdrops often reward frequency, so consider restaking weekly on EigenLayer using the liquid staking tokens you've accumulated.

EigenLayer offers a compelling new take on Ethereum staking that could unlock innovative applications if successfully implemented. Through its modular architecture and active developer community, the protocol continues pushing boundaries in decentralized finance.

While the testnet remains a work in progress, taking part now allows supporters to influence EigenLayer's roadmap directly. Providing feedback on the usability, staking options, and modular offerings can help streamline future launches. It also positions participants well for any mainnet token distributions or governance rights down the line.

That's all, if you want see the video version of this guide, it's uploaded on Alt Crypto Gems YouTube channel, check it out:

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