EigenLayer, the Ethereum restaking protocol, has witnessed a surge in Total Value Locked (TVL) following the removal of limits on its liquid staking token (LST) pools. The protocol recently announced the temporary unpause of token restaking until February 9 and the elimination of TVL caps for every token. This resulted in a remarkable increase in TVL within just a few hours of the launch.
On February 5th, the protocol allowed unrestricted access to EigenLayer’s nine existing LST pools, coinciding with the introduction of support for three new LSTs from Frax, Mantle, and Liquid Collective. As a result, the protocol experienced a surge in TVL, reaching an impressive $4 billion within two days after the unpause. By providing uncapped access to LST pools, the platform attracts a wider range of participants to its staking protocol.
Source: https://defillama.com/protocol/eigenlayer
The surge in TVL underscores the community’s enthusiasm and confidence in the protocol. In the coming months, the pause and caps will be lifted permanently, EigenLayer said. EigenLayer announced in a blog that it seeks a balance between neutrality and decentralization in the long term, proposing several measures, including:
- No caps on staked TVL on a per-LST or per-LRT basis
- No caps on payments from AVSs to stakers on a per-LST or per-LRT basis
- EigenLayer protocol incentives and governance participation are capped at 33% for any particular LST, LRT, or single participant (like an exchange)
About EigenLayer
EigenLayer introduces the innovative concept of retaking, enabling users to deposit their staked assets, such as $ETH, to secure protocols built on their infrastructure, referred to as Actively Validated Services (AVS). The protocol aggregates security from the Ethereum layer and leverages this economic security to fortify other protocols. EigenLayer not only enables Ethereum stakers to actively participate in validating the Ethereum network but also earns extra yields by securing third-party modules. The surging popularity of EigenLayer catalyzed the emergence of a new sector called liquid restaking. Despite restaked ETH remains illiquid, a wave of protocols like Ether.fi, Puffer, Renzo, and KelpDAO have swiftly introduced LRTs. The total TVL of the LRT protocols has exceeded 800.000 Ether (approximately $1,9 billion).
