Research Summary
The report discusses the first round of deposits into EigenLayer, a highly anticipated development in the Ethereum and wider crypto ecosystem. EigenLayer introduces restaking, a mechanism that allows users to rehypothecate their staked ETH for additional yield, extending the underlying security of their staked ETH to integrated applications. The report also covers Yearn’s yETH, a basket of LSTs governed by st-yETH, not veYFI. yETH deposits are opening soon, with depositors receiving incentives from LST protocols and other users as they vote on which LST will be included in the protocol’s first instance.
Actionable Insights
- Monitor EigenLayer: The top address accounts for ~10% of total deposits. They are expected to raise deposit caps soon.
- Consider Yearn’s yETH: Deposits are opening on the 14th of July. Users can deposit ETH (locked for 16 weeks) and receive incentives from LST protocols and other users.
- Understand the benefits of EigenLayer: It introduces restaking, allowing applications to access shared security from Ethereum. This can benefit data availability layers, oracle networks, bridges, new consensus protocols, and blockchains.
