in Crypto

EigenLayer’s TVL hits $6 billion after new restaking window opens

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EigenLayer’s whole worth locked (TVL) has topped $6 billion following the protocol’s resolution to open a brand new restaking window earlier this week, based on knowledge from DeFiLlama. This represents an 181% surge within the final seven days.

EigenLayer TVL

With TVL’s present worth at $6 billion, EigenLayer has surpassed Uniswap and have become the fifth-largest DeFi protocol behind Lido, Maker, AAVE, and JustLend.

On Monday, EigenLayer introduced that it will resume restaking and take away TVL caps for all tokens from February 5 to 9, with plans to completely raise caps within the coming months. The protocol additionally launched new liquidity staking tokens (LSTs), together with Frax Ether (sfrxETH), Mantle Staked Ether (mETH), and Liquid Staked Ether (LsETH). Lower than 48 hours after the restaking interval reopened, EigenLayer’s TVL soared 120%.

Restaking is the method of staking liquidity pool tokens a second time. This mechanism permits for the reinvestment of the staking rewards, thereby rising returns by liquid staking strategies. EigenLayer is the pioneer of Ethereum restaking which facilitates the reuse of liquid staking derivatives’ tokens.

Whereas restaking has quite a few benefits, equivalent to the potential for double good points and enhanced community safety, it doesn’t come with out its dangers. Vitalik Buterin, the co-founder of Ethereum, beforehand raised considerations about this mannequin, highlighting in final Might’s submit that it might overload or clog the Ethereum mainnet, notably when the Dencun improve is underway.

In line with EigenLayer’s newest replace, restaking LSTs was paused in preparation for the mainnet launch of EigenDA and Operator. The protocol added that the quantity of Ethereum restaked reached 2.45 million.

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