Liquid re-staking protocol EigenLayer has temporarily lifted its per-protocol staking cap, which was set at 200,000 ETH. As a result, within a few hours, assets under custody (Total Value Locked: TVL) increased by $750 million (approximately 112.5 billion yen, equivalent to 150 yen to the dollar).
DefiLlama data shows that more than 1 million ETH inflows occurred within two hours of the cap being lifted, and cumulative assets under custody exceeded $3 billion. As of this writing, official assets under custody are $3.2 billion, an increase of $1 billion from the previous day’s tally.
Inflow to Lido tops
With re-staking, you can earn additional rewards by staking Ethereum that you have already staked on the main Ethereum blockchain on other layers. Eigenlayer currently supports popular Liquid Staking Tokens (LST) such as Lido Staked ETH (stETH) and Rocketpool ETH (RETH). Lido and Rocketpool are among the platforms that stake Ethereum on behalf of users. LST is issued to indicate staking, but this LST earns interest and can be traded like any other token.
In terms of inflows on the 5th, Lido’s stETH was at the top with $560 million, accounting for approximately 80% of new deposits to Eigenlayer.
We plan to permanently remove the upper limit in the future.
According to a recent blog post from Eigenlayer, the removal of the LST cap is aimed at “inviting organic demand.” The new cap will take effect on February 9th, but Eigenlayer says it plans to permanently remove the deposit limit in the future.
Eigenlayer also announced the launch of a mainnet for operators that will allow investors to run nodes, and the first “actively validated service” built on top of Eigenlayer. It also announced that it will soon introduce EigenDA, a distributed data availability service.
Interest in Eigenlayer has increased in recent months as a number of emerging projects like Puffer Finance and Ether.fi have started offering very large rewards called “points” to users who re-stake. But while restaking is booming, some developers have warned that Eigenlayer’s “shared security” model could overburden or overwork the Ethereum blockchain. ing.
｜Translation and editing: Rinan Hayashi
｜Image: Eigenlayer CEO (Bradley Keoun)
｜Original text: EigenLayer Lifts Staking Cap, TVL Soars Past $3B