Near Foundation Collaborates with Eigen Labs to Address Liquidity Challenges on Layer-2

Near Foundation has announced a collaboration with Eigen Labs, the developer behind the Restaking EigenLayer protocol, to tackle liquidity challenges on Layer-2.

Near Foundation Collaborates with Eigen Labs to Address Liquidity Challenges on Layer-2

This partnership aims to reduce transaction costs on Ethereum. Transactions are expected to complete within 3-4 seconds using rapid communication mechanisms between Rollups. Additionally, the liquidity fragmentation problem between Layer-2 solutions will also be addressed.

Near Foundation stated:

"With EigenLayer, this collaboration will accelerate cross-network transaction processing and bring the Restaking solution to a wider ecosystem. For Near, this step will transform the Near - Ethereum Rainbow Bridge into an Autonomous Virtual State (AVS). This will enhance the Near-Ethereum bridge experience, providing higher Finality speeds, improved security, and increased decentralization."

Founder of Near, Illia Polosukhin, commented:

"Near Foundation is excited to collaborate with Eigen Labs to deliver high-speed Finality solutions for ETH Rollups. This technology advantage of Near also helps make the Open Web more accessible. It minimizes liquidity fragmentation across Ethereum Rollups and enhances Web3 to deliver a seamless user experience."

EigenLayer provides a solution allowing users to Restake ETH and supports consensus layers for new networks. Previously, Eigen Labs successfully completed a $50 million USD Series A funding round to advance the necessary infrastructure for this solution.

Recently, Near also announced the deployment of its Data Availability solution and partnered with Polygon to develop zkWASM solutions.

The price of NEAR has shown minimal volatility following the collaboration news with Eigen Labs.

Chart: 1-hour NEAR/USDT pair on Binance as of 11:20 PM on November 10, 2023.