EigenLayer Removes Deposit Caps On Liquid Staking Tokens – Crypto News – Crypto News
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EigenLayer Removes Deposit Caps On Liquid Staking Tokens EigenLayer Removes Deposit Caps On Liquid Staking Tokens

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EigenLayer Removes Deposit Caps On Liquid Staking Tokens – Crypto News

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1 year ago

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The move marks the culmination of the Ethereum restaking protocol’s rollout phase.

Ethereum restaking protocol EigenLayer has ended its rollout phase today by removing caps on all ETH liquid staking tokens (LST) and unpausing restaking deposits.

“The removal of LST caps marks a new phase for the EigenLayer ecosystem, unlocking growth opportunities,” said the protocol’s X account, christening it a move towards an “open market for innovation.”

Today’s move allows uncapped access to EigenLayer’s eleven existing liquid staking token (LST) pools.

EigenLayer’s decision to remove caps and unpause restaking follows a proposal to limit LSTs at 33%, deemed a number that would foster neutrality and decentralization. Both are considered guiding principles for the protocol.

Notwithstanding a small dip in total value locked (TVL) in dollar terms due to market volatility, the restaking protocol has seen resounding success since launching in late 2023. Its TVL stands at 4.05 million ETH, or $12.4 billion, commanding 99% of the restaking sector.

EigenLayer TVL

Last week saw a successful mainnet debut from EigenLayer, which went live on April 10.

The first 24 hours saw $500 million in delegated stake, amid an all-time high in TVL. On launch day, several big-name companies – including Coinbase and Google Cloud – signed up to be operators, providing security for applications built atop EigenLayer.

The next day, the protocol launched six new Actively Validated Services (AVS) aimed to accelerate rollups, real-world data integration, and co-processors.

Controversial Competitor

EigenLayer faces some competition from an old but newly branded protocol, this time named Karak.

Karak Network is looking to jump on board the restaking wagon, but it has come under fire after it was revealed to be the second reincarnation of Risk Harbor – a project accused of running off with millions earmarked as insurance for Terra’s failed UST stablecoin.

Despite the drama, investors have been pouring funds into Karak, according to DefiLlama. The protocol has increased its TVL by 130% in the past week, reaching $194 million.

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