Liquidity providers can earn boosted points for all three projects and EigenLayer.<\/p>\n
The competition for liquid restaking market share continues to heat up as the sector\u2019s top projects offer boosted points to incentivize users.<\/p>\n
On Feb. 10, EtherFi, Renzo, and Swell announced<\/a> they had partnered to launch a tri-liquid restaking token (LRT) pool on the Balancer decentralized exchange. Liquidity providers can earn points for all three LRT providers, in addition to points for EigenLayer<\/a>, the pioneering Ethereum restaking protocol.<\/p>\n \u201cWe\u2019ve teamed up with Renzo Protocol and EtherFi to introduce the first ever tri-LRT pool,\u201d Swell tweeted. \u201cThis revolutionary pool enables you to earn four points at once.\u201d<\/p>\n \u201cWe strongly believe that collaboration is important in the LRT space for the benefit of users,\u201d said<\/a> EtherFi.<\/p>\n <\/p>\n Each project\u2019s points are allocated to liquidity providers based on the entire value of liquidity providers\u2019 positions. Points distributions are doubled for its first month of operation, excluding EigenLayer.<\/p>\n The new pool serves as a mechanism for Swell, EtherFi, and Renzo to collaborate in a bid to expand each project\u2019s respective dominance over the rapidly expanding LRT sector. <\/p>\n The total value locked (TVL) in LRT protocols is up roughly 1,000% since the start of the year at just shy of $3B, according to DeFi Llama.<\/p>\n EtherFi is the sector\u2019s leading protocol with a TVL of $1.04B, accounting for 35% of liquid restaking TVL. EtherFi\u2019s TVL crossed past $1B for the first time on Feb. 11 following the success of its \u201cmega week\u201d campaign offering boosted points to users from Jan. 31 through Feb. 10.<\/p>\n Puffer Finance has emerged as the second-largest LRT protocol, amassing an $857M TVL since\u00a0enabling deposits<\/a>\u00a0on Feb. 1, followed by Kelp DAO with $396M, and Renzo with $270M.<\/p>\n Swell ranks seventh with $41M after\u00a0launching<\/a>\u00a0a liquid restaking token on Jan. 29, meaning the protocol stands to gain the most from the newly launched tri-LRT pool on Balancer.<\/p>\n <\/p>\nLiquid restaking protocols boom<\/h2>\n
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