The Home Of EigenLayerWhat are the parties in a Re-staking process?
A Quick OverviewSo, EigenLayer is a protocol that facilitates the staking or restaking of ETH across multiple networks and protocols for better rewards for the stakers, while ensuring security for the protocols by providing more liquidity to ensure smooth operations. 😎 Just a subtle reminder that the LSTs received from the staking of native ETH can be restaked to ensure the security of subsidiary networks and earn higher rewards. This process/concept is known as restaking.How does Restaking ...
The Home Of EigenLayerWhat is Eigen Layer?
Imagine locking your funds in a Fixed Deposit and still being able to use them to earn extra rewards. Sounds amazing, right? 😎 This is exactly what EigenLayer stands for. By restaking—or in simpler terms, by reinvesting the same money—you can earn more rewards, secure the network, and boost new Dapps simultaneously.General Introduction to Staking 🔐Essentially, staking refers to the process of locking in your funds for the smoother operation of the blockchain network. These operations includ...
The Home Of EigenLayerWhat "Problem" does EigenLayer solve ?
The ProblemThink of a middleman or a broker you’ve just met. He says he will take your money as an investment and pay you some interest. The methodology will be his own, but your money will grow. Will you trust him? 🤔Handling finances with multiple parties involved is all about trust. The involvement of middlemen and third parties reduces trust because the opportunities for default increase. In addition to trust issues, the involvement of third parties or institutions also leads to a lack of...
Everything you need to know about EigenLayer and the Restaking ecosystem. Learn about restaking and analyze restaking data all in one place.
The Home Of EigenLayerWhat are the parties in a Re-staking process?
A Quick OverviewSo, EigenLayer is a protocol that facilitates the staking or restaking of ETH across multiple networks and protocols for better rewards for the stakers, while ensuring security for the protocols by providing more liquidity to ensure smooth operations. 😎 Just a subtle reminder that the LSTs received from the staking of native ETH can be restaked to ensure the security of subsidiary networks and earn higher rewards. This process/concept is known as restaking.How does Restaking ...
The Home Of EigenLayerWhat is Eigen Layer?
Imagine locking your funds in a Fixed Deposit and still being able to use them to earn extra rewards. Sounds amazing, right? 😎 This is exactly what EigenLayer stands for. By restaking—or in simpler terms, by reinvesting the same money—you can earn more rewards, secure the network, and boost new Dapps simultaneously.General Introduction to Staking 🔐Essentially, staking refers to the process of locking in your funds for the smoother operation of the blockchain network. These operations includ...
The Home Of EigenLayerWhat "Problem" does EigenLayer solve ?
The ProblemThink of a middleman or a broker you’ve just met. He says he will take your money as an investment and pay you some interest. The methodology will be his own, but your money will grow. Will you trust him? 🤔Handling finances with multiple parties involved is all about trust. The involvement of middlemen and third parties reduces trust because the opportunities for default increase. In addition to trust issues, the involvement of third parties or institutions also leads to a lack of...
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Everything you need to know about EigenLayer and the Restaking ecosystem. Learn about restaking and analyze restaking data all in one place.
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Imagine depositing your coin in the bank for interest, but in return, the bank gives you a magic coin. 🪙
This magic coin can be used again for reinvesting in another bank, which can guarantee interest again. So, you see how your interest is getting doubled. Well, it can get increased even more multiple times.
Here, this process of investing or staking your coin multiple times is known as Restaking and these magic coins are known as Liquid Restaking Tokens or LRTs.
By formal definition, LRTs are tokens received when users deposit ETH in a liquid staking protocol. More on these protocols later. 😉
As a token that represents staked ETH, LRTs allow users to gain the base yield from the ‘Primary Protocol’ and additional yield from ‘Actively Validated Services(AVS)’.
LRTs possess multiple benefits. They not only provide higher yields to users but also ensure security through increased TVL (total value locked) in the protocols.
Increased Yield Opportunities
Higher yields as they are coming from two places i.e. the primary protocol and enhanced return from the AVSs.
Simplified UX
Instead of running the validator node for Native Restaking, the use of LRTs makes the process much more convenient and smooth, given the availability of multiple restaking methods.
Lower Capital Requirements
As LRTs can be used for restaking across multiple protocols, the capital required for this also decreases manifold.
Protocols that accept native ETH or LSTs (Liquid Staking Tokens) for restaking purposes can issue LRTs. Below are some of the major protocols that issue LRTs:
Renzo Protocol
It is a liquid restaking protocol built on EigenLayer, designed to secure AVS on Ethereum and return higher yields.
Renzo stands with a current TVL of $3.32 billion and at a valuation of $25 million at the time of its seed funding.
Users can deposit LSTs like stETH and wBETH, and receive ezETH as LRT. ezETH is a reward-bearing token i.e. its value can increase relative to the underlying token.
Ether.fi is a liquid staking platform in 2022 to address the lack of traditional staking methods.
Users can stake their native ETH and receive eTH as LST.
An enhanced security feature that Ether.fi offers is the use of T-NFTs and B-NFTs for the exchange of validator keys.
The governance token of Ether.fi, also known as ETHFI currently stands at around $4.25 at the time of writing with market cap of around $480 million.
T-NFTs, B-NFTs, Validator Keys.
It’s not too much, let me break it down:
T-NFT stands for Transferable Non-Fungible Tokens. It represents 30 ETH and is transferrable. Using T-NFT, one can ask for their staked ETH back.
B-NFT stands for Bound Non-Fungible Tokens. It represents 2 ETH and is like a safety badge that protects you from penalties. Also, it offers higher rewards, but also has more responsibilities.
Validator keys are the public-private key pairs used by Ethereum validators to participate in the proof-of-stake consensus mechanism.
Wasn’t complicated at all. 😎
KelpDAO
It is a DAO that focuses on liquidity restaking solutions for public networks.
The motto is to ensure great rewards and liquidity while empowering the community in decision-making and governance.
The LRT for KelpDAO is rsETH which can be swapped on AMMs for instant liquidity.
Current price of rsETH stands at around $3,799 at the time of writing with a market cap of around $952 million.
Swell
Just like Ether.fi, Swell is also a non-custodial liquid staking platform.
Users stake their native ETH in order to receive swETH which is also an interest-bearing token.
swETH can be used to earn additional interest through in-app "vaults”.
Current price of swETH stands at around $3,959 at the time of writing with a market cap of around $690 million.
Puffer
Similar to Renzo, Puffer is also a liquid restaking platform built on EigenLayer.
Users can stake their ETH and receive pufETH which is also a yield-generating token. pufETH mirrors the yield of wstETH, while also providing with Puffer & EigenLayer points.
Current price of pufETH stands at around $3,740 at the time of writing with a market cap of around $556 million.
Imagine depositing your coin in the bank for interest, but in return, the bank gives you a magic coin. 🪙
This magic coin can be used again for reinvesting in another bank, which can guarantee interest again. So, you see how your interest is getting doubled. Well, it can get increased even more multiple times.
Here, this process of investing or staking your coin multiple times is known as Restaking and these magic coins are known as Liquid Restaking Tokens or LRTs.
By formal definition, LRTs are tokens received when users deposit ETH in a liquid staking protocol. More on these protocols later. 😉
As a token that represents staked ETH, LRTs allow users to gain the base yield from the ‘Primary Protocol’ and additional yield from ‘Actively Validated Services(AVS)’.
LRTs possess multiple benefits. They not only provide higher yields to users but also ensure security through increased TVL (total value locked) in the protocols.
Increased Yield Opportunities
Higher yields as they are coming from two places i.e. the primary protocol and enhanced return from the AVSs.
Simplified UX
Instead of running the validator node for Native Restaking, the use of LRTs makes the process much more convenient and smooth, given the availability of multiple restaking methods.
Lower Capital Requirements
As LRTs can be used for restaking across multiple protocols, the capital required for this also decreases manifold.
Protocols that accept native ETH or LSTs (Liquid Staking Tokens) for restaking purposes can issue LRTs. Below are some of the major protocols that issue LRTs:
Renzo Protocol
It is a liquid restaking protocol built on EigenLayer, designed to secure AVS on Ethereum and return higher yields.
Renzo stands with a current TVL of $3.32 billion and at a valuation of $25 million at the time of its seed funding.
Users can deposit LSTs like stETH and wBETH, and receive ezETH as LRT. ezETH is a reward-bearing token i.e. its value can increase relative to the underlying token.
Ether.fi is a liquid staking platform in 2022 to address the lack of traditional staking methods.
Users can stake their native ETH and receive eTH as LST.
An enhanced security feature that Ether.fi offers is the use of T-NFTs and B-NFTs for the exchange of validator keys.
The governance token of Ether.fi, also known as ETHFI currently stands at around $4.25 at the time of writing with market cap of around $480 million.
T-NFTs, B-NFTs, Validator Keys.
It’s not too much, let me break it down:
T-NFT stands for Transferable Non-Fungible Tokens. It represents 30 ETH and is transferrable. Using T-NFT, one can ask for their staked ETH back.
B-NFT stands for Bound Non-Fungible Tokens. It represents 2 ETH and is like a safety badge that protects you from penalties. Also, it offers higher rewards, but also has more responsibilities.
Validator keys are the public-private key pairs used by Ethereum validators to participate in the proof-of-stake consensus mechanism.
Wasn’t complicated at all. 😎
KelpDAO
It is a DAO that focuses on liquidity restaking solutions for public networks.
The motto is to ensure great rewards and liquidity while empowering the community in decision-making and governance.
The LRT for KelpDAO is rsETH which can be swapped on AMMs for instant liquidity.
Current price of rsETH stands at around $3,799 at the time of writing with a market cap of around $952 million.
Swell
Just like Ether.fi, Swell is also a non-custodial liquid staking platform.
Users stake their native ETH in order to receive swETH which is also an interest-bearing token.
swETH can be used to earn additional interest through in-app "vaults”.
Current price of swETH stands at around $3,959 at the time of writing with a market cap of around $690 million.
Puffer
Similar to Renzo, Puffer is also a liquid restaking platform built on EigenLayer.
Users can stake their ETH and receive pufETH which is also a yield-generating token. pufETH mirrors the yield of wstETH, while also providing with Puffer & EigenLayer points.
Current price of pufETH stands at around $3,740 at the time of writing with a market cap of around $556 million.
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