Key Terms

Virtual Machine (VM) In the context of smart contract blockchains, a virtual machine is a simulated computing environment that executes smart contracts, ensuring stable and secure decentralized application functionality. The first and most notable VM is the Ethereum Virtual Machine (EVM), Alternate Virtual Machine (AltVM) An AltVM describes a virtual machine which is not a traditional EVM. AltVMs have been developed to address flaws that are inherent in EVM. Parallelized EVM Unlike in the traditional EVM where transactions are processed linearly, Parallelized EVM enhance blockchain scalability by allowing multiple transactions to be executed simultaneously, reducing latency and boosting throughput. They achieve this through parallel processing, either via sharding or rollups. OmniVM OmniVM describes a protocol that can simultaneously support multiple virtual machines, contrasting to the current paradigm of L1 blockchains limited to supporting one, such as the Ethereum Virtual Machine or Solana Virtual Machine. Liquid Staking Token (LST) A token representing a staked asset that remains liquid, allowing holders to participate in DeFi activities without unstaking. Liquid Restaking Token (LRT) A token representing a restaked asset that maintains liquidity, enabling holders to engage in decentralized finance while the asset is restaked. Restaking The process of staking an already staked asset on a different network or protocol to enhance security and earn additional rewards. Actively Validated Services (AVS) Any system that requires its own distributed validation semantics for verification, such as sidechains, data availability layers, new virtual machines, keeper networks, oracle networks, bridges, threshold cryptography schemes, and trusted execution environments. Liquid Staking A service that enables users to deposit their ETH into a staking pool and receive a liquid staking token. This token represents a claim on their ETH and its staking yield. Liquid staking tokens can be traded in the DeFi ecosystem and redeemed for their underlying ETH value after a waiting period. LST Restaking A method where LST holders restake their Liquid Staking Tokens (LSTs) by transferring them into the EigenLayer smart contracts. Liquidity-as-a-Service (LaaS) Describes a service whereby liquidity is treated as a commodity and can be rented out as a service. EigenFI Any asset that has been derived from the interactions with the EigenLayer protocol, most notably LRTs such as ezETH and eETH.