EigenLayer, a protocol based on Ethereum, has unveiled The EigenLayer Points Program, designed to encourage early adoption by rewarding activities such as restaking liquid staking tokens (LSTs). Through this program, traders earn EigenLayer Points, which make them eligible for the upcoming EigenLayer Airdrop. In this guide, we’ll explore essential details about EigenLayer Points and how you can trade them on a secondary market.
What are EigenLayer Points?
EigenLayer Points symbolize a trader’s contribution to the collective security of the EigenLayer ecosystem, representing their involvement in staking measured by the duration and quantity of staked assets in Ethereum (ETH) units over time.
The EigenLayer Points Program was launched to stimulate early adoption activities on the EigenLayer platform, which includes restaking liquid staking tokens (LSTs) within the system. Rewards are based on the quantity and duration of tokens restaked, determining eligibility for the upcoming EigenLayer Airdrop, offering holders opportunities for significant rewards.
BIT Exchange, the first centralized exchange to offer EigenLayer Points trading before the Token Generation Event, will reward its EigenLayer Points holders with the new token based on the official conversion rate during the EigenLayer Airdrop release.
While cryptocurrencies introduce new investment avenues, they also come with inherent risks. Hence, it’s crucial to conduct thorough research and assess your risk tolerance before engaging.
How to Trade EigenLayer Points using BIT Exchange’s Platform: Step-by-Step
To trade EigenLayer Points, you must register on BIT Exchange, a specialized cryptocurrency exchange tailored for professional users with advanced risk management and fund efficiency through Portfolio Margin and Unified Margin. Launched in August 2020, BIT operates as an affiliate of Matrixport, a leading crypto financial services provider.
To trade EigenLayer Points on BIT Exchange, follow these steps:
1. Create a BIT account.
2. Verify your account.
3. Fund your account.
4. Trade EigenLayer Points.
Step 1: Create a BIT Account
Begin by visiting the BIT website and clicking on the “Sign Up” button. Choose your preferred method of registration via mobile number or email, fill in the required fields, accept the User Agreement and Privacy Policy, and click “Sign Up.” Enter the verification code received via mobile or email to confirm.
Step 2: Verify Your Account
Download the BIT app to verify your account. Click on “Verify Now” on the BIT interface, provide necessary information, and wait for verification, which varies in duration.
Step 3: Fund Your Account
Once verified, go to your unified account page on BIT, click “Deposit,” select EigenLayer Point (ELP), and note the deposit address or scan the QR code for transfer.
Step 4: Trade EigenLayer Points
Return to BIT’s main interface, search for “ELP” in the search bar, select your trading strategy (Buy or Sell), and proceed.
How Does Liquid Restaking Work on EigenLayer?
EigenLayer introduces restaking to optimize staked assets’ utility and efficiency in the blockchain ecosystem. Unlike traditional staking, where assets are locked in one layer or project, EigenLayer allows maintaining multiple layers simultaneously, extending asset protection and fostering a collaborative ecosystem.
Validators and stakers can engage in the restaking process, earning rewards not only from the base layer but also from other layers or applications. This multi-layer rewards system incentivizes participation, marking a significant advancement in blockchain security.
EigenLayer and restaking offer numerous benefits to the blockchain domain:
– Increased efficiency.
– Enhanced security.
– New revenue streams for stakers.
– Innovative Layer 2 solutions and decentralized applications.
Pros and Cons of Trading EigenLayer Points
Pros:
– Utilize surplus points from staking.
– Contribute directly to EigenLayer’s growth.
– Earn rewards from multiple layers through restaking.
Cons:
– Cryptocurrency volatility.
– Project acceptance uncertainty.
How to Invest in Crypto Safely
Investors can mitigate crypto risks by:
– Conducting thorough research.
– Using secure devices and networks.
– Choosing reliable exchanges.
– Employing strong security measures like 2FA.
– Storing cryptocurrencies in secure wallets.
– Investing conservatively.
– Monitoring the market closely.
Disclaimer: This content does not constitute investment advice; investing involves risks.
FAQs about EigenLayer Points
1. What is EigenLayer?
EigenLayer is an Ethereum-based restaking protocol allowing the recycling of ETH within the consensus layer, offering stakers options to participate in smart contracts for restaking.
2. How to get EigenLayer Points?
Earn EigenLayer Points by staking within the EigenLayer ecosystem.
3. How much are EigenLayer Points worth?
The value of EigenLayer Points fluctuates; track their movement using tools on BIT Exchange.
4. Where can I trade EigenLayer Points?
Register on BIT Exchange to trade EigenLayer Points on an external market.
5. When is the EigenLayer Airdrop?
The official date for the EigenLayer Airdrop hasn’t been announced yet, though anticipated as a significant event in the crypto sphere.
