Research Summary
The report discusses the recent developments in the Ethereum ecosystem, particularly the rise of restaking through EigenLayer. It highlights the increase in deposit caps, the introduction of new Liquid Staking Tokens (LSTs), and the emergence of Liquid Restaking Tokens (LRTs). The report also mentions the significant demand for restaking, as evidenced by EigenLayer’s Total Value Locked (TVL) hitting $1 billion in less than 48 hours.
Key Takeaways
EigenLayer and the Rise of Restaking
- Revival of Ethereum Mainnet: The report notes that the Ethereum mainnet has been relatively quiet recently. However, with EigenLayer increasing deposit caps, there are signs of renewed activity. EigenLayer allows ETH stakers to restake their ETH to provide economic security for additional protocols or services.
- Increased Restaking Caps: On December 18th, EigenLayer increased the restaking caps for current LSTs and allowed six new LSTs to participate in restaking. This move led to EigenLayer’s TVL hitting $1 billion in less than 48 hours, indicating significant demand for restaking.
Introduction of New Liquid Staking Tokens
- New LSTs Participation: The report mentions that EigenLayer allowed six new LSTs to participate in restaking. These include wBETH (Binance), osETH (Stakewise), swETH (Swell), AnkrETH (Ankr), EthX (Stader), and oETH (Origin ETH).
- Leading LSTs: Among the new LSTs, swETH by Swell and ETHx issued by Stader were the clear leaders.
Emergence of Liquid Restaking Tokens
- Introduction of LRTs: The report highlights the emergence of Liquid Restaking Tokens (LRTs) following the increase in restaking caps. These protocols offer a liquid receipt token for EigenLayer deposits.
- Leading LRTs: Ether.fi and Kelp are leading the charge in the LRT space, with over 70kΞ in LRTs issued so far.
Expectations for the Ethereum Ecosystem
- Upcoming Developments: The report suggests that the recent excitement surrounding EigenLayer, along with expectations for the Dencun upgrade and EIP4844 being pulled forward to February, could make the holiday season fruitful for the Ethereum ecosystem.
Actionable Insights
- Monitor Developments in EigenLayer: Given the significant demand for restaking and the introduction of new LSTs and LRTs, it would be beneficial to keep a close eye on developments in EigenLayer and the Ethereum ecosystem.
- Research the Potential of LSTs and LRTs: With the emergence of new LSTs and LRTs, there may be potential opportunities in these areas. It would be worthwhile to research these tokens and understand their implications for the Ethereum ecosystem.
- Stay Informed About Upcoming Ethereum Upgrades: With the Dencun upgrade and EIP4844 expected to be pulled forward to February, staying informed about these developments could provide valuable insights into the future direction of the Ethereum ecosystem.
