EigenLayer, an Ethereum-based protocol, has announced The EigenLayer Points Program which incentivizes early adoption by rewarding activities like restaking liquid staking tokens (LSTs). Within the program, traders earn EigenLayer Points which qualify them for the upcoming EigenLayer Airdrop. In this guide, we’ll go over some of the more general info about EigenLayer Points and explain how you can trade them on a secondary market.
What are EigenLayer Points?
The EigenLayer Points Program was initiated to incentivize early adoption activities on the EigenLayer platform, including restaking liquid staking tokens (LSTs) within the system, with rewards based on the quantity and duration of tokens restaked. These points determine eligibility for the upcoming EigenLayer Airdrop, providing holders with opportunities for valuable rewards.
BIT Exchange (BIT) is the first centralized exchange to offer EigenLayer Points trading ahead of the Token Generation Event. Upon the release of EigenLayer’s Airdrop, BIT’s EigenLayer Points holders will receive the new token based on the official conversion rate.
How to trade EigenLayer Points using BIT Exchange’s platform: Step-by-step
To trade EigenLayer Points, you will need to register at BIT.
BIT is a specialized cryptocurrency exchange tailored for professional users, boasting 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 provider of crypto financial services.
To trade EigenLayer Points on BIT, follow these simple steps:
- Create a BIT account;
- Verify your account;
- Fund your account;
- Trade EigenLayer Points.
Step1: Create a BIT account
First, you will have to create a BIT account. To start, head over to the BIT website and click on the Sign Up button in the upper right corner (as shown below):
Next, you will be given an option to create an account via your mobile number or email (as seen below):
To proceed, simply choose your preferred method and fill out the necessary fields. Then, check out the User Agreement and Privacy Policy box and click on the Sign Up button.
Next, you will receive a code either on your mobile or in your email. Simply paste the code into the field and click confirm (as shown below):
Step 2: Verify your account
To verify the account, you will have to download the BIT app. To start, you can click on the Verify Now button at the top of the main BIT interface (as seen below):
Once you’ve got the app, you can go through the verification process by providing some basic info (seen below) and waiting for the account to be verified (the length of the process will vary on a case-to-case basis).
Step 3: Fund your account
Once your account has been verified, return to the BIT interface and head over to your unified account page. There, click on the Deposit button (as seen below):
Next, you can select the token you wish to deposit. In this case, you want the EigenLayer Point (ELP):
Then, a deposit address will appear below, which you can use to transfer EigenLayer Points from your wallet. Alternatively, you can scan the QR code that will likewise appear below the selected token.
Step 4: Trade EigenLayer Points
Finally, you are ready to trade EigenLayer Points. Simply return to the main BIT interface and look up “ELP” in the search bar which can be found by clicking on the BTC/USDT pair (as seen below):
Once you’ve chosen ELP, you can click on the Buy and Sell buttons on the right (shown below), depending on how you wish to proceed with your strategy.
How does liquid restaking work on EigenLayer?
EigenLayer introduces a concept called restaking to maximize the utility and efficiency of staked assets in the blockchain ecosystem. Traditionally, staked assets are locked in one layer or limited to one project, but with EigenLayer, they can maintain multiple layers simultaneously. That is, EigenLayer extends the protection of staked assets to additional projects, helping foster a collaborative ecosystem.
Validators and stakers can participate in the restaking process, earning rewards not only from the base layer but also from other layers or applications. This creates a multi-layer rewards system that incentivizes participation. As such, EigenLayer’s model is a considerable advancement in blockchain security.
The introduction of EigenLayer and restaking brings numerous benefits to the blockchain domain, including:
- Increased efficiency;
- Enhanced security;
- New revenue streams for stakers;
- Innovative Layer 2 solutions and decentralized applications.
Pros and cons of trading EigenLayer Points
Pros
- It’s a good way to make use of surplus points you earn by staking on EigenLanyer;
- You can directly contribute to the growth of the EigenLayler protocol;
- By restaking, you can earn rewards not only from the base layer but also from other layers as well.
Cons
- Crypto is always volatile;
- There is always a chance the project will not be as accepted as one might hope.
How to invest in crypto safely
Cryptocurrencies are known for their volatility and susceptibility to fraudulent activities due to their less regulated trading environment. However, investors can mitigate risks by following certain precautions, such as:
- Doing sufficient research: Understand the cryptocurrency you are trading and its risks;
- Avoiding insecure devices: Always use a secure device and install a virtual private network (VPN) for secure transactions. Never use public networks and devices;
- Saying no to unreliable exchanges: Choose only licensed exchanges with a good track record;
- Making sure their accounts are safe: Utilize two-factor authentication (2FA) and strong passwords;
- Using only secure wallets: Store cryptocurrencies in secure wallets;
- Knowing how much to invest: Be conservative with investments, considering crypto’s volatility. Never invest what you cannot afford to lose;
- Monitoring the market: Monitor investments closely due to market volatility.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about EigenLayer Points
What is EigenLayer?
EigenLayer is an Ethereum-based (ETH) restaking protocol that allows for the recycling of ETH within the consensus layer. Users who stake ETH directly or through a liquid staking token (LST) have the option to participate in EigenLayer smart contracts to restake their ETH or LST.
How to get EigenLayer Points?
You can get EigenLayer Points by staking within the EigenLayer ecosystem.
How much are EigenLayer Points worth?
The crypto market is rather volatile, so the worth of EigenLayer Points in relation to other assets always changes. To keep track of its movement, you can use tools provided on the BIT Exchange.
Where can I trade EigenLayer Points?
You can trade your EigenLayer Points on an external market by registering at BIT Exchange.
When is the EigenLayer Airdrop?
Although it is expected to be a significant, if not the largest, event in the crypto sphere this year, the official date forEigenLayer Airdrop hasn’t been announced yet.
