Native EL strategy vaults

Native Eigenlayer (NEL) strategy vaults are the most complex, but also most profitable strategy vaults.

They allow fee-free staking and restaking in one place (without having to get LSTs from another protocols and paying transfer fees + protocol fees).

Moreover, they benefit from the extreme capital efficiency of our auction system - which yields top-of-the-market staking APRs.

An NEL strategy vault consists of:

• The strategy vault contract, which controls and administers the flow of ETH

• An EigenPod

• A DVT cluster of node operators who validate ETH transactions

• An AVS operator who performs the duties required for the AVSs to be validated

It's called a strategy vault because its purpose is to validate a portfolio of AVSs called a strategy.

The modularity of strategy vaults

As mentioned above, a strategy vault is designed to - once set up - run independently, indefinitely. This modularity and composability is a core purpose of the protocol.