EigenLayer’s LST pool will stay uncapped till February ninth.
The full worth locked within the Ethereum recollateralization protocol EigenLayer surged 70% in at some point after the undertaking briefly lifted restrictions on mining swimming pools.
Based on DeFi Llama, EigenLayer first eliminated the cap on its Liquid Staked Token (LST) pool on February 5, prompting customers to inject $1.5B price of funds into the protocol in roughly 13 hours. EigenLayer now has practically $3.7B in whole worth locked (TVL), positioning it because the sixth largest protocol within the DeFi house.
The protocol’s LST pool will stay uncapped till February 9 at 3pm ET. Nevertheless, customers also can use ETH to re-pledge regionally at any time with out restrictions.
EigenLayer is transferring in direction of permissionless LST entry
EigenLayer is the primary protocol to introduce re-staking, which permits customers to concurrently earn Ethereum staking rewards whereas additionally receiving third-party Lively Verification Companies (AVS) to generate further income.
EigenLayer stated its determination to briefly carry LST restrictions helps pave the way in which for the protocol’s future decentralization. Whereas native restaking has been uncapped since launch, EigenLayer has regularly elevated its LST pool restrict whereas launching new liquid staking tokens in latest months.
In a February 5 weblog publish, the crew stated it deliberate to start completely eradicating the cap on a single LST token, paving the way in which for LST holders to have unrestricted entry to the protocol.
EigenLayer additionally launched assist for 3 new LSTs on February 5, bringing the overall variety of supported liquid staking tokens to 12.
Regardless of the wide range of LSTs supported by the protocol, Lido’s stETH token accounts for 50.5% of EigenLayer’s LST deposits, in response to Dune Analytics. Swell’s swETH ranks second with 16.3%, adopted by Stader’s ETHx (8.1%) and Mantle’s mETH (6.2%).
Liquidity recollateralization development
The expansion of EigenLayer has additionally spawned the brand new discipline of Liquidity Re-hypothecation Protocols (LRT) – initiatives that use native re-hypothecation to supply token holders with Ethereum staking and EigenLayer staking advantages.
TVL for gentle rail has soared to $2 billion from simply $101 million on December 20. The trade is led by main gentle rail protocol EtherFI ($763 million), newly launched Puffer Finance, and Kelp DAO ($315.5 million).
