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EigenLayer questions

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Hello everyone,

Long story short - been reading a lot of stuff regarding EigenLayer. I've been in crypto for a few years but often abstain from any project participation to avoid any risks - especially when it comes to "new" projects.

So I have some general questions:

1) How secure would you rate this process to be if I happen to stake with EigenLayer? Of course - never throw your entire net worth in, but how secure am I in case anything dodgy happens with their website? I assume tokens are just in my wallet and as long as I don't sign any dodgy contract, nothing can really happen?

2) Staked ETH - never really engaged with any of that. What are the risks that the staked ETH simply crashes in price or experiences other issues? I guess if I have 1 Staked ETH I won't get 1 ETH back, if the value goes down to 0?

3) Now I know I better talk to a professional - but I assume swapping between ETH and sETH would be a taxable event in most places as it's not a swap within the same project? E.g. where I live, the swap from ETH to ETH2 would not be considered a taxable event as it's not considered a different/new coin. But maybe there's a more technical explanation that I don't understand.

Sorry for these beginner questions and thanks for any help/advice you may have.

submitted by /u/SirOxford
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