Gearbox is the first decentralized finance protocol to add leverage into the Ethereum liquid re-staking trade and degens are flocking in.<\/p>\n
Gearbox pulled in over 2,600 of liquid restaking token (LRT) weETH, or $7.9M, in 24 hours. The leverage-focused app integrated with EtherFi, the issuer of weETH, to start enabling leverage on LRTs.<\/p>\n
A cap on the weETH pool has already been met, but Gearbox hinted on X that an integration with liquid restaking protocol Renzo may be next.<\/p>\n
Gearbox<\/a> is allowing users to use weETH tokens as collateral to take out loans worth nine and a half times what was deposited, at an annual borrow cost of roughly 14%, according to a spreadsheet<\/a> provided by the team.<\/p>\n <\/p>\n Traders are levering up on LRTs with the expectation they will receive more tokens in one of crypto\u2019s most anticipated airdrops<\/a>.<\/p>\n The airdrop in question is tied to Eigenlayer<\/a>, the hyped solution which allows users to deposit staked ETH in order to offer the network\u2019s security to still other projects<\/a>. EtherFi is also expected to distribute tokens to users.<\/p>\n Eigenlayer and EtherFi are running point systems, a trend in crypto which projects use to reward users. As projects have used points to allocate airdrops at a later date, crypto users now expect any points system will translate into tradable tokens down the line.<\/p>\n Gearbox says its strategies allow for a multiple of 9.5 on Eigenlayer points and 19 on EtherFi points.<\/p>\n The quick deposits of what is over $7.5M worth of ETH shows that users are hungry to lever up on accruing those points.<\/p>\n <\/p>\n Start for free<\/a><\/div>\n <\/p>\n Gearbox<\/a> offers leverage through its Credit Account model which pools one party\u2019s funds with other users\u2019 who are providing liquidity for a yield.<\/p>\n Gearbox warned in a Feb. 19 post<\/a> that users will forfeit their accrued points if they close their Credit Account.<\/p>\n They also warn that users risk liquidation if weETH de-pegs from ETH. WeETH has $57 million of liquidity, versus over one billion for ETH, which means the token can be volatile.<\/p>\n EtherFi issues weETH to represent ETH deposits in its protocol. Those funds then get deposited in EigenLayer, which stakes those funds to Ethereum, and uses staked ETH to secure other applications.<\/p>\n The restaking sector is booming, with Eigenlayer\u2019s total value locked soaring to $7.6 billion from $250 million at the start of the year as the protocol continues<\/a> to lift<\/a> deposit caps.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" The cap on EtherFi liquid re-staking tokens has been filled but Gearbox is hinting Renzo’s LRTs will be added next. Gearbox is the first decentralized finance protocol to add leverage into the Ethereum liquid re-staking trade and degens are flocking in. Gearbox pulled in over 2,600 of liquid restaking token (LRT) weETH, or $7.9M, in […]<\/p>\n","protected":false},"author":2,"featured_media":251119,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[274,273,272,244,266,271,268,270,269,267],"class_list":["post-251118","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-de-fi","tag-crypto-finance","tag-decentralized-finance","tag-liquidity","tag-metamask","tag-pancake","tag-slippage","tag-sushiswap","tag-tronlink","tag-trust-wallet","tag-uniswap"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/251118","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=251118"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/251118\/revisions"}],"predecessor-version":[{"id":251121,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/251118\/revisions\/251121"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/251119"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=251118"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=251118"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=251118"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Airdrop Anticipation<\/h2>\n
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