EigenLayer’s LST swimming pools will stay uncapped till Feb. 9.
The full worth locked in EigenLayer, the pioneering Ethereum restaking protocol, rocketed by 70% in at some point after the challenge quickly eliminated its pool limits.
EigenLayer eliminated the caps on its liquid staking token (LST) swimming pools for the primary time on Feb. 5, prompting customers to inject $1.5B price of into the protocol over roughly 13 hours, in keeping with DeFi Llama. EigenLayer now boasts a complete worth locked (TVL) of practically $3.7B, positioning it because the DeFi sector’s sixth-largest protocol.
The protocol’s LST swimming pools will stay uncapped till 3 PM EST on Feb. 9. Nonetheless, customers can even natively restake utilizing ETH with out restrict at any time.
EigenLayer inches towards permissionless LST entry
EigenLayer was the primary protocol to introduce restaking, which permits customers to concurrently earn Ethereum staking rewards whereas additionally securing third-party Actively Validated Providers (AVSs) to generate further yield.
EigenLayer mentioned its determination to quickly take away its LST limits helps to pave the best way for the protocol’s future decentralization. Whereas native restaking has remained uncapped since launch, EigenLayer has progressively elevated its LST pool limits whereas onboarding new liquid staking tokens in latest months.
In a Feb. 5 weblog publish, the crew mentioned it plans to start completely eradicating the caps of particular person LST tokens shifting ahead, paving the best way for LST holders to get pleasure from unrestrained entry to the protocol.
EigenLayer additionally launched assist for 3 new LSTs on Feb. 5, bringing the full variety of liquid staking tokens supported to 12.
Regardless of the broad choice of LSTs supported by the protocol, Lido’s stETH token accounts for 50.5% of EigenLayer’s LST deposits, in keeping with Dune Analytics. Swell’s swETH ranks second with 16.3%, adopted by Stader’s ETHx with 8.1%, and Mantle’s mETH with 6.2%.
Liquid restaking grows
EigenLayer’s development has additionally given rise to the brand new sector of liquid restaking protocols (LRT) — tasks leveraging native restaking to supply tokenholders yield from each Ethereum staking and EigenLayer staking.
LRTs have rocketed to a $2B TVL, up from simply $101M on Dec. 20. The sector is led by pioneering LRT protocol EtherFI with $763M, the freshly-launched Puffer Finance, and Kelp DAO with $315.5M.
