Starting next week, EigenLayer by Eigen Labs will do away with all limitations on Liquid Staking Tokens (LSTs) and allow for the resumption of deposits for restaking. This latest development from EigenLayer, the pioneering restaking protocol on the Ethereum blockchain, adds to their impressive string of innovations, solidifying their position as a leading crypto project in 2023.
EigenLayer Announces Unpausing Restaking Deposits
In a recent update, EigenLayer announced that it will no longer impose limits on liquid staking tokens (LST) beginning April 16. This signifies the conclusion of EigenLayer’s phased release, allowing for a more expansive and adaptable staking environment.
“EigenLayer’s progress has been driven by a dedication to both stability and expansion. The accomplished launches of Stages 1, 2, and 3 have paved the way for a prosperous community of validators, operators, Automated Verifiable Systems (AVSs), and rollups,” according to Eigen Labs.
The EigenLayer network may reach its maximum capability if we eliminate the LST limits, as the protocol intends to introduce rewards. However, a suggestion has been made to limit these rewards to 33% for each user in order to maintain neutrality and decentralization.
Potential of Restaking
EigenLayer introduces the feature of “re-staking” ETH on Ethereum, allowing users to utilize their already staked ETH to enhance security for various dapps and network infrastructure. By building upon Ethereum’s strong security foundation, EigenLayer aims to expand protection for a wider selection of dapps, encourage decentralized innovation, and simplify on-chain development for creators.
According to DeFiLlama’s latest data, approximately 3.88 million Ethereum, equivalent to around $12.67 billion, has been invested by depositors in staking contracts. This significant figure underscores the increasing interest in staking and the allure of extra rewards.
On April 9, EigenLayer made its debut on the Ethereum mainnet. Since then, they’ve shared news of the AVS mainnet launch and the introduction of six new Active Validated Services (AVS). Notably, Coinbase Staking has signed up as an operator with EigenLayer, capitalizing on the opportunities in the staking market.
Furthermore, Coinbase has issued a cautionary note regarding the escalating staking industry in Ethereum. This means that attractive rewards might entice Liquid Restaking Token (LRT) suppliers to engage in various staking activities, potentially aggravating existing financial and security hazards.
Read More
- LUNC PREDICTION. LUNC cryptocurrency
- SOL PREDICTION. SOL cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- USD COP PREDICTION
- BICO PREDICTION. BICO cryptocurrency
- USD ZAR PREDICTION
- USD PHP PREDICTION
- VANRY PREDICTION. VANRY cryptocurrency
- USD CLP PREDICTION
- NAKA PREDICTION. NAKA cryptocurrency
2024-04-13 13:55