The total value locked in liquid re-staking tokens reached nearly $8 billion.
Protocols such as Etherfi, Renzo, Kelp, Puffer, etc. have seen a rapid increase in deposits over the past few months. This increase occurs because users can leverage EigenLayer through these platforms to maintain access to their funds.
Etherfi has the highest TVL among these light rails, exceeding $3.2 billion, followed by Renzo with $2 billion and Puffer with $1.3 billion. Kelp has over $740 million in user deposits, EigenPie has $328 million in TVL, and Swell has $265 million.
Other smaller LRT protocols include Bedrock with a TVL of $145 million, Prime with $42 million, and ClayStack with $10 million.
Liquid re-staking allows liquid staking token holders to stake their tokens on EigenLayer, thereby contributing to economic security. This differs from traditional liquid staking, where you stake assets through a staking service provider and receive receipt tokens in return.
EigenLayer’s contribution to the TVL growth of these protocols is noteworthy. This allows users to deposit and “re-stake” ether in a variety of liquid staking tokens.
EigenLayer allows you to deposit and “re-stake” Ether in a variety of liquid staking tokens and aims to allocate these funds to secure third-party protocols.
The total value locked in EigenLayer currently exceeds $13 billion, according to The Block’s data dashboard. The goal of the project is to use these funds to strengthen the security of other networks, such as Rollup, Oracle, Data Availability Platform, or similar services.
Last February, a window to restock EigenLayer deposits with liquid staking tokens briefly opened, but has since closed. In this context, LRT acts as an alternative, allowing users to deposit funds into Eigen when the limit is almost reached, given that there are no restrictions on re-staking directly to EigenLayer using Ether validator stakes.
Therefore, LRT protocols such as EtherFi, Renzo, and Kelp are still accepting Ether deposits, securing them back for users, and issuing derivative tokens, while promising to distribute the points earned on Eigen.
EigenLayer rewards users with points for ether deposits, which may increase your chances of earning tokens from EigenLayer. A significant number of users are currently utilizing LRT to deposit into Eigen, with the goal of securing rewards from both LRT and a potential double airdrop.
These protocols also provide additional incentive by awarding two types of points, one set from Eigen and the other set from the protocol. For example, when users re-stake LST, such as stETH, through Kelp, they will earn points on both EigenLayer and KelpDAO, improving their chances of receiving rewards from each entity.
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