Liquid restaking protocols surpass $900M or 45% of EigenLayer’s TVL.
The burgeoning liquid restaking sector continues to develop, with Swell turning into the most recent mission to launch a token providing yields by way of EigenLayer.
On Jan. 29, Swell introduced the launch of rswETH, a liquid staking token (LRT). The token permits customers to earn Ethereum staking rewards and native restaking yield from EigenLayer with out locking up their liquidity, which means customers may use their tokens in third-party DeFi protocols.
Tokenholders additionally earn EigenLayer’s Restaked Factors alongside Pearls — which characterize a future declare to Swell’s forthcoming SWELL token. Swell will accumulate 10% of customers’ staking rewards after taking zero charges for the primary 30 days after rswETH’s launch.
Swell at present boasts $455.6M in complete worth locked, in keeping with DeFi Llama, with its liquid staking token (LST) accounting for 97% of the TVL.
Liquid restaking
Swell’s entrance into the LRT section follows liquid restaking lately rising as a sizzling new narrative inside DeFi.
EigenLayer pioneered restaking, permitting customers to earn Ethereum staking rewards along with restaking yields for securing third-party providers by way of the protocol. EigenLayer customers generate yields both by natively restaking ETH by way of the protocol with out restrict or by depositing LSTs to the protocol’s capped swimming pools. Greater than $2B value of ETH is now deposited in EigenLayer.
LRT suppliers provide the advantages of uncapped entry to EigenLayer restaking rewards with out customers having to spin up a node to validate Ethereum, along with permitting tokenholders to stay liquid quite than lock their property.
The surging rise of LRTs
EtherFi is at present the main liquid staking protocol, with its eETH token surging to a $507M TVL after rising 400% because the begin of January.
EtherFi’s TVL is up 47% since launching a vampire assault supposed to siphon liquidity from EigenLayer on Jan. 24. The marketing campaign permits EigenLayer restakers to swap their ETH or LST deposits for eETH whereas sidestepping the seven-day delay on withdrawals. Individuals additionally earn loyalty factors forward of EtherFi’s token era occasion in April.
KelpDAO has emerged because the second-largest LRT with a $256M TVL after launching in December. KelpDAO boasts integrations with LSTs from Frax and Stader.
Renzo can also be a outstanding LRT protocol with a $155M TVL. The mission introduced the completion of a $3.2M seed spherical.
