Research Summary
The report discusses the growing trend of restaking in the Ethereum network, the rise of point systems in DeFi protocols, and the influx of stablecoins into the Solana ecosystem. It also highlights the risks associated with restaking and provides an overview of upcoming token unlocks and launches.
Key Takeaways
Explosive Growth of Restaking
- Surge in Restaking: The report highlights the significant growth in restaking protocols, with the total value locked (TVL) increasing from approximately $300 million in December 2023 to over $4 billion in February 2024. Restaking allows the utilization of already-staked Ethereum across multiple protocols, sharing Ethereum’s platform security with other platforms.
- Popularity of Restaking: The report attributes the popularity of restaking to the points system run by EigenLayer, which has a TVL of over $2 billion. Users can earn both native protocol points and EigenLayer points through liquid restaking protocols like Puffer and Ether.fi.
Adoption of Point Systems
- Emergence of Point Systems: The report notes the increasing adoption of point systems by new protocols seeking user attention and capital. These systems allow users to pre-farm accumulating points, potentially leading to more user engagement.
- Effective Point Farming: The report suggests that users who act like real users, showing genuine interest in the protocols they use, tend to earn more points and subsequently tokens than passive farmers.
Stablecoin Inflows to Solana
- Stablecoin Influx: The report observes that over $250 million of stablecoins entered the Solana ecosystem in the past week, pushing the total stablecoin on Solana above $2 billion for the first time since November 2022. This influx is expected to continue.
Upcoming Token Unlocks and Launches
- Token Unlocks: The report lists several upcoming token unlocks, including IMX, GMT, ENS, HFT, KWENTA, and APT.
- Launches: The report also mentions several unvetted launches, including the $STRD airdrop to $sTIA holders, the Bitcoin Name Service Marketplace Launch, the BRISE Staking Launch, the Polygon Etrog Upgrade, and the Astar dApp V3 Staking.
Actionable Insights
- Consider the Risks of Restaking: While restaking offers potential rewards, it also carries risks, including increased protocol and smart contract risk. Users should carefully evaluate these risks before engaging in restaking.
- Engage Actively with Protocols: Users who actively engage with protocols and act like real users tend to earn more points and tokens. Therefore, users should consider being more active and curious about the protocols they use.
- Monitor Stablecoin Inflows: The influx of stablecoins into the Solana ecosystem could indicate growing interest in the platform. Users should monitor these inflows for potential opportunities.
- Stay Informed about Token Unlocks and Launches: Upcoming token unlocks and launches can impact the market. Users should stay informed about these events to make timely decisions.
