EtherFi accounts for 36% of the $4.65B locked in liquid staking protocols.
EtherFi, the main liquid restaking protocol, has closed a $23M Sequence A funding spherical.
Introduced on Feb. 28, the spherical was led by Bullish Capital and CoinFund, and in addition attracted participation from Consensys, OKX Ventures, and Draper Dragon. Distinguished web3 founders behind Aave, Polygon, Kraken, and Curve additionally partook within the spherical.
“EtherFi has seen outstanding progress and we’re thrilled to welcome the backing of main crypto traders to assist our continued growth,” stated Mike Silagadze, EtherFi’s CEO and co-founder. “World market members are shifting their focus to the Ethereum ecosystem, the place… its transition to proof of stake delivers staking and restaking rewards to those that take part.
The information follows explosive progress within the liquid restaking token (LRT) sector, which has ballooned from a mixed whole worth locked (TVL) of $281.4M at first of the 12 months to $4.65B immediately, in line with DeFi Llama.
LRT tasks enable customers to entry restaking yields through EigenLayer, the pioneering Ethereum restaking protocol, with no need to lock up their property.
EigenLayer permits customers to earn further yields on high Ethereum staking rewards by additionally securing third-party providers on the identical time. EigenLayer customers can both deposit liquid staking tokens to its capped swimming pools or deposit natively staked Ether with out restrict. EigenLayer’s TVL at the moment sits at $9B, accounting for 8.7% of staked Ether and rating it because the fourth-largest DeFi protocol.
Most LRT protocols provide customers publicity to native restaking, with depositors receiving tokens representing their restaked place — which might then be utilized in DeFi protocols or traded to bypass restaking withdrawal delays.
EtherFi innovated the liquid restaking sector and at the moment boasts the most important TVL at $1.67B. Puffer Finance is available in second with $1.17B, adopted by Renzo with $625M, and Kelp DAO with $604M.
EtherFi stated its TVL has grown by 15 instances for the reason that starting of 2024, attracting deposits from roughly 71,000 distinctive wallets.
“Restaking has the potential to unravel the chilly begin problem new tasks face by leveraging the prevailing energy of the Ethereum validator set and turn into a central a part of digital asset infrastructure for the long run,” stated Alasdair Foster, president of Bullish Capital. EtherFi has pioneered how to do that in a capital-efficient method by means of liquid restaking, and we’re excited to associate with them on additional growing this progressive expertise.”
