{"id":75092,"date":"2024-04-03T04:23:47","date_gmt":"2024-04-03T08:23:47","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=75092"},"modified":"2024-04-03T04:24:29","modified_gmt":"2024-04-03T08:24:29","slug":"ethereums-defi-sector-sees-restaking-surge-to-second-place","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/ethereums-defi-sector-sees-restaking-surge-to-second-place\/","title":{"rendered":"Ethereum’s DeFi Sector Sees Restaking Surge to Second Place"},"content":{"rendered":"\n

Coinbase examines the potential long-term significance of restaking for Ethereum yields<\/a>, particularly if native stake issuance decreases.<\/p>\n\n\n\n

\"Ethereum's<\/figure>\n\n\n\n

Since The Merge in September 2022, when the Ethereum blockchain transitioned into a Proof-of-Stake (PoS) network, the platform's liquid staking protocols have increased dramatically.<\/p>\n\n\n\n

In recent times, however, restaking has received even more attention with the rise of liquid restaking tokens (LRTs).<\/p>\n\n\n\n

Eigen Layer Emerges as the Ethereum's Second-Largest DeFi Protocol<\/h2>\n\n\n\n

Due to Ethereum's robust staking infrastructure and ample security budget, EigenLayer has ascended to the position of the second-largest DeFi protocol on the platform in terms of total value locked (TVL), which is presently $12.4 billion.<\/p>\n\n\n\n

EigenLayer enables validators to acquire additional compensation by restaking their staked ETH to secure actively validated services (AVS).<\/p>\n\n\n\n

The impressive expansion of EigenLayer's TVL<\/a> places it in second place, trailing only Lido, the preeminent liquid staking protocol on Ethereum.<\/p>\n\n\n\n

In June 2023, EigenLayer introduced its restaking protocol to the Ethereum mainnet. <\/p>\n\n\n\n

In the second quarter of 2024, AVSs are scheduled to be implemented as part of the subsequent phase of EigenLayer's multi-phase deployment.<\/p>\n\n\n\n

By securing novel Ethereum functionalities including data availability layers, rollups, bridges, oracles, and cross-chain messages, validators may be eligible to receive additional rewards through EigenLayer's innovative “restaking” concept.<\/p>\n\n\n\n

This provides validators with a new source of revenue in the form of “security-as-a-service.”<\/p>\n\n\n\n

Coinbase's report\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> also emphasized the development of a flourishing ecosystem surrounding Liquid Restaking Tokens (LRTs), which mirrored the achievements of Liquid Staking Tokens (LSTs).<\/p>\n\n\n\n

This ecosystem now has over a half-dozen protocols, each giving its iteration of liquid restaking tokens with a variety of incentives and airdrop methods.<\/p>\n\n\n\n

Furthermore, around 2.1 million ETH, or 62%, of the 3 million ETH that are sealed in EigenLayer, are wrapped in secondary protocols.<\/p>\n\n\n\n

Prospects for Restaking Tokens<\/h2>\n\n\n\n

Coinbase further highlighted the potential importance of restaking as a means to obtain ETH returns, especially if increased participation in staking activities leads to a decrease in the issuance of native staking coins.<\/p>\n\n\n\n

Coinbase also noted the anticipated near-term challenges for Liquid Restaking Tokens (LRTs), given the relatively low yields on Actively Validated Services (AVS) following their introduction.<\/p>\n\n\n\n

Notably, no AVS has yet been deployed on the mainnet; EigenDA, the initial AVS, is scheduled to be deployed in early Q2 2024.<\/p>\n\n\n\n

EigenDA may operate as a data availability layer in a manner comparable to that of Celestia or the blob storage on Ethereum.<\/p>\n\n\n\n

Based on the substantial reduction in layer-2 (L2) transaction fees achieved with the Dencun upgrade<\/a>, Coinbase predicts that EigenDA will provide another pathway\u00a0for economical L2 transactions, thereby enhancing the multifaceted arsenal of Ethereum.<\/p>\n","protected":false},"excerpt":{"rendered":"

Coinbase examines the potential long-term significance of restaking for Ethereum yields, particularly if native stake issuance decreases. Since The Merge in September 2022, when the Ethereum blockchain transitioned into a Proof-of-Stake (PoS) network, the platform’s liquid staking protocols have increased dramatically. In recent times, however, restaking has received even more attention with the rise of liquid […]<\/p>\n","protected":false},"author":56,"featured_media":75108,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21,23],"tags":[18341,14202,128,19028,19029],"class_list":["post-75092","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-ethereum-news","tag-eigenlayer","tag-eth-staking","tag-ethereum","tag-liquid-staking","tag-restaking"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/04\/Ethereums-DeFi-Sector-Sees-Restaking-Surge-to-Second-Place.webp","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/75092","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/56"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=75092"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/75092\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/75108"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=75092"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=75092"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=75092"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}