How to view the subsequent development of the Restaking track: Is AVS implementation and empowerment the right path?

Source: Chain View

Recently, a series of factors including: @eigenlayer's expected airdrop, @RenzoProtocol's performance after launch was below expectations, and the decline in Fomo sentiment of other Restaking have undoubtedly cooled down the Restaking re-staking track. How do you see the current situation of the Restaking industry and the possible changes in the future? Next, I will briefly share a few points:

1) The Restaking track has indeed experienced a long period of irrational prosperity and development. From the points war to ETHFI, Renzo, Puffer, Swell and other high market expectations, the re-staking track has fallen into a "locking liquidity" data show mode of grabbing native ETH and LST certificates, as if whoever can attract more assets to lock in can create greater expected value in the future, and therefore get a higher valuation when entering the market?

In my opinion, this value estimation standard is far from the truth, and it ignores an essence. Locking assets such as LST certificates cannot create incremental value for points. The AVS network market behind it can be opened up, and the real creation of income is the beginning of value. Obviously, under irrational emotions, everyone's expectations and focus are not on the implementation of AVS. Instead, they use the method of attracting traffic and assets to exchange for high expectations, which cannot be effectively supported;

2) Eigenlayer hastily issued tokens and proposed an innovative paradigm of intersubjective. To be honest, this token issuance seems to me to be specifically for "extinguishing fire and cooling down". Because if the Lego war of restaking points is further demonized, the pressure on Eigenlayer will be exponentially magnified. Once Eigenlayer has any disturbance in the future development process, it will trigger a chain resonance crisis in the re-staking industry.

The expected landing of Eigenlayer's token issuance will obviously cool down the Fomo trend such as the points war, and let the market focus on the growth of the AVS network effect, the support point of re-staking.

3) AVS (Active Verification Service), in simple terms, is to select some nodes from the tens of thousands of node operators of Ethereum, and do some corresponding software, hardware and technical service capabilities enhancement, so that these Validators can maintain their original Ethereum consensus, add some new and expanded service capabilities to maintain the security of other networks such as Rollup, and then obtain the possibility of additional income. (It is equivalent to abstracting some "mining pools" from a large number of "miners" and then doing some business expansion)

The AVS network can be understood as some "middleware" service enhancements in the basic Infra layer of Ethereum, allowing some nodes to unite and "encapsulate" and commercialize service capabilities such as decentralized sequencers and decentralized Oracles. In theory, as long as the capacity boundary of the nodes under the jurisdiction of AVS is large enough, as long as it is within the large consensus framework of Ethereum, the application landing scenarios that can be expanded will be very impressive.

In a more popular understanding, these middleware networks originally required external consensus construction to access, and now directly allow the underlying infrastructure of Ethereum to have such service capabilities, and it can represent a certain Ethereum security consensus. The AVS node enhancement application paradigm can be regarded as a potential direction for Ethereum to increase its business expansion capabilities, but its focus is on the enhancement of node service capabilities, as well as the actual implementation of AVS network service capabilities and the conversion of benefits. It is not the expected attributes of subsidiary pledge re-staking and points War brought by AVS.

4) In fact, the AVS node enhancement application paradigm is also reflected outside the Ethereum network: for example: @MarlinProtocol can provide rental computing power support for some AI model training demand parties through distributed node enhancement; another example: @FlareNetworks can directly integrate the EVM network and the on-chain ecology by enhancing its off-chain distributed Oracle node capabilities, opening up the narrative direction of Oracle As A Service. (Take time to follow up the analysis and interpretation in detail)

After the node operation and maintenance parties that were originally behind the scenes and at the bottom have enhanced their capabilities, they can bring more extensive business growth capabilities to the original chain.

Looking back, Eigenlayer originally did restaking just to provide basic security capabilities for its EigenDA (the first AVS), but it never thought that it would open the "Pandora's Box" of restaking: on the negative side, if not guided and controlled, the false prosperity of restaking will further amplify the potential liquidity crisis of the Ethereum network; on the positive side, from the perspective of AVS node capacity enhancement, Restaking will indeed inject a new narrative direction and imagination space into the blockchain ecosystem.

This is the future of the restaking track, nothing else.