Overview
AltLayer is a rollup infrastructure provider that simplifies the deployment and operation of custom rollups. Founded by Yaoqi Jia, the platform offers a no-code rollup deployment service supporting major frameworks including OP Stack, Arbitrum Orbit, and Polygon zkEVM (ZK Stack). AltLayer's key innovation is "restaked rollups" — rollups that leverage EigenLayer restaking for additional economic security.
The platform operates at the infrastructure layer, providing rollup deployment, management, and security services rather than running a single chain. This positions AltLayer as a pick-and-shovel play on the modular blockchain thesis.
Technology
AltLayer's technology stack includes three core AVS (Actively Validated Services) built on EigenLayer: VITAL (decentralized verification of rollup state), MACH (fast finality layer providing near-instant confirmation), and SQUAD (decentralized sequencing network). These services can be mixed and matched for different rollup deployments.
The platform supports multiple rollup frameworks, allowing deployers to choose between optimistic rollups (OP Stack, Arbitrum Orbit) and ZK rollups (Polygon CDK) based on their requirements. The no-code deployment wizard simplifies rollup creation, while the AltLayer SDK enables more customized configurations.
Restaked rollups use EigenLayer's restaked ETH to provide economic security for rollup services (sequencing, verification, finality), creating a security budget derived from Ethereum's validator set rather than a new token.
Security
AltLayer's security model is layered. The underlying rollups inherit security from their respective frameworks (OP Stack fraud proofs, ZK validity proofs). The restaking layer adds economic security through EigenLayer — restaked ETH backs the AVS operators who provide sequencing, verification, and finality services.
The MACH fast finality layer provides confirmation before base layer settlement, creating a spectrum of security levels (MACH confirmation → rollup proof → L1 settlement). VITAL enables decentralized state verification, reducing trust in centralized sequencers.
However, the restaking model introduces slashing complexity and interdependency with EigenLayer's protocol. The AVS security depends on the amount of restaked ETH and the operator set, which is still growing.
Decentralization
AltLayer itself is an infrastructure platform operated by the AltLayer team. Individual rollups deployed through AltLayer have varying decentralization depending on their configuration. The AVS-based services (VITAL, MACH, SQUAD) are operated by a set of EigenLayer operators, providing moderate decentralization.
The SQUAD decentralized sequencer addresses one of the key centralization concerns in rollups. However, adoption of SQUAD is optional, and many rollups may still use centralized sequencers. The ALT token governance is developing, but the team maintains significant control over protocol development.
Ecosystem
AltLayer has built a meaningful ecosystem of rollup deployments. Notable chains launched through AltLayer include Xterio (gaming), Cyber (social), and multiple other application-specific rollups. The platform's flexibility in supporting multiple frameworks has attracted diverse deployers.
Partnerships with major ecosystem players — EigenLayer, Optimism, Arbitrum, Celestia — position AltLayer as a central infrastructure provider. The RaaS market is competitive but AltLayer's early mover advantage with restaked rollups and multi-framework support provides differentiation.
Tokenomics
ALT token is used for governance, staking within the AVS system, and paying for rollup services. The token is staked alongside restaked ETH to align AltLayer-specific incentives. Restaked rollup operators bond ALT as additional collateral.
The dual-staking model (ALT + restaked ETH) creates demand from rollup deployers and operators. However, the token's value is tied to rollup deployment activity and the broader demand for RaaS infrastructure. The tokenomics create reasonable utility but depend on sustained rollup demand growth.
Risk Factors
- EigenLayer dependency: Core security model depends on EigenLayer's protocol stability and adoption
- RaaS competition: Faces competition from Conduit, Caldera, Gelato, and other RaaS providers
- Restaking risks: EigenLayer slashing and restaking mechanisms introduce systemic risk
- Rollup market saturation: The proliferation of rollups may lead to fragmentation and low per-rollup usage
- Infrastructure complexity: Multi-AVS, multi-framework model is complex to operate and secure
- Market cyclicality: RaaS demand may decline in bear markets as fewer projects launch rollups
Conclusion
AltLayer is well-positioned in the growing rollup-as-a-service market with genuine technical innovation in restaked rollups. The integration with EigenLayer provides a compelling security model, and multi-framework support offers flexibility. The ecosystem of deployed rollups is growing meaningfully. However, the RaaS market is increasingly competitive, EigenLayer dependency introduces systemic risk, and the long-term sustainability of the "thousands of rollups" thesis remains unproven. AltLayer is a strong infrastructure play contingent on the modular blockchain narrative sustaining.
Sources
- AltLayer documentation (docs.altlayer.io)
- EigenLayer AVS specifications
- AltLayer rollup deployment data
- CoinGecko ALT token data
- Rollup-as-a-service market analysis
- L2Beat rollup ecosystem data