Fun

Restaking protocol EigenLayer flips Aave with $10.4B total value locked

News Feed - 2024-03-06 03:03:34

Jesse Coghlan3 hours agoRestaking protocol EigenLayer flips Aave with $10.4B total value lockedEigenLayer is now the second-largest DeFi protocol behind Lido after taking Aave’s spot.640 Total views2 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksEthereum staking protocol EigenLayer has shot past lending protocol Aave in its total value locked (TVL), with $10.4 billion worth of crypto committed to the protocol after temporarily removing a cap on how much users could stake.


On March 5, EigenLayer hit an all-time high TVL of $11 billion, surpassing Aave’s 21-month high $10.7 billion TVL and becoming the second-largest decentralized finance (DeFi) protocol by TVL behind staking giant Lido, according to DefiLlama data.


Both TVLs have now dropped slightly, with EigenLayer at $10.4 billion and Aave at $10.35 billion.EigenLayer started 2024 with $1.1 billion TVL and has seen an 844.6% year-to-date growth Source: DefiLlama


Restaking protocols such as EigenLayer and its smaller rival, the Octopus Network, allow users to restake their already staking-derived tokens such as Lido Staked ETH (stETH) — which is provided to those staking Ether (ETH) on Lido.


The practice has caused controversy, with some Ethereum developers warning it creates too much leverage while proponents say it can hand out extra rewards to those who have already staked their ETH.


EigenLayer’s TVL started to climb on Feb. 5 after it temporarily removed its staking cap to help spur further growth and has since seen a 382.5% increase in TVL.


The protocol’s flip of Aave saw Solana Foundation strategy head Austin Federa challenge how restaking TVL is counted in a March 5 X post, saying he doesn’t think staking-derived assets like stETH should be counted as their value is technically locked on another protocol.


“I don’t think restaking (or liquid staking) should be counted as TVL if we’re not going to count staked native assets as TVL,” Federa wrote.


Dune Analytics data shows EigenLayer has over 115,000 unique depositors with DefiLlama stats showing 74% of staked tokens are Wrapped Ether (wETH) and stETH.WETH makes up just over 41% of tokens locked on EigenLayer, while stETH is just over 30%. Source: DefiLlama


Aave, meanwhile, has over 5,700 daily active users while Lido has under 430, according to Token Terminal data.


Aave has also faced headwinds over the past two weeks as its long-time risk manager Gauntlet left it on Feb. 21 over claimed difficulties navigating “inconsistent guidelines and unwritten objectives of the largest stakeholders.”


Related:Omni Network seals $600M deal with Ether.Fi


Gauntlet’s split came two months after it signed a one-year, $1.6 million contract with Aave. Days later, on Feb. 28, it partnered with rival DeFi lending protocol Morpho.


Liquid staking protocols, where users receive a token 1:1 for their staked funds, are the largest DeFi protocol category with nearly $55 billion in locked value across about 160 protocols — buoyed mainly by Lido, the largest protocol by locked value at $35 billion.


Restaking, with just two protocols, is the sixth-largest category behind the 125 projects that use collateralized lending to mint stablecoins.


Magazine:‘Crypto is inevitable’ so we went ‘all in’ — Meet Vance Spencer, permabull# Data# DeFi# Aave# StakingAdd reactionAdd reaction

News Feed

Indian Crypto Banks and Exchanges See Massive Growth Amid Rising Covid-19 Crisis: Survey
Indian Crypto Banks and Exchanges See Massive Growth Amid Rising Covid-19 Crisis: SurveyThe crypto industry in India is experiencing massive growth, according to a new survey of cry
Unofficial GameStop memecoin surpasses $100M in market cap
Zhiyuan Sun8 hours agoUnofficial GameStop memecoin surpasses $100M in market capThe Solana memecoin has soared more than 2,000% in the past week following the surge in GameStop’s stock.3471 Total views5 Total sharesLis
Tom Mitchelhill8 hours agoCFTC investigators conclude ex-Celsius CEO Mashinsky broke US rules: ReportIf a majority of CFTC commissioners agree with the conclusion, the regulator could file a case in federal court.2637 To
Heroes of Arcan Announces Community-Driven Heroic Fantasy Play-to-Earn Game
Heroes of Arcan Announces Community-Driven Heroic Fantasy Play-to-Earn Game press release PRESS RELEASE.Heroes of Arcan aims to create a play-to-earn game that offers players engagi
William Suberg16 hours agoBitcoin ‘full breakout’ not here yet as BTC price spends month at $30KBTC price targets extend down to $27,000 with Bitcoin in a state of “flux.”2847 Total views33 Total sharesListen to
Bitcoin ETFs Coming To Japan? Government Prepares To End Ban
Este artículo también está disponible en español. The sun could be set to shine brighter in Japan’s financial horizon, as regulators take another look at how Bitcoi
Trezor’s first hardware wallet turns 10: But is it still any good?
Helen Partz10 hours agoTrezor’s first hardware wallet turns 10: But is it still any good?A decade ago, Trezor’s first-ever hardware wallet was retailed for up to $1,800. It is still intact and supported in Trezor’s
Germany’s Information Security Office champions hardware wallets
Vince Quill6 hours agoGermany’s Information Security Office champions hardware walletsAccording to a recent Chainalysis report, thefts resulting from crypto hacks and exploits have totaled $1.58 billion in 2024.1477 To
Bank of Spain Criticizes El Salvador’s Foray Into Bitcoin
Bank of Spain Criticizes El Salvador"s Foray Into Bitcoin The Bank of Spain, the central bank of the country, criticized the adoption process El Salvador chose when declaring Bitco
Russians to Pay Fees on Digital Ruble Transactions, Central Bank Says
Russians to Pay Fees on Digital Ruble Transactions, Central Bank Says Users of Russia’s central bank digital currency are going to pay a fee for each transaction, a high-ran
3 ways futures traders can use leverage and avoid liquidation losses
Marcel Pechman4 hours ago3 ways futures traders can use leverage and avoid liquidation lossesPro traders use a combination of futures trading strategies to generate profits while limiting their liquidation risk.437 Total
Cumberland Sees Massive OTC Moves During Crypto Market Rout — ‘Most Volume We’ve Seen This Year’
Cumberland Sees Massive OTC Moves During Crypto Market Rout — "Most Volume We"ve Seen This Year" During the last week, while crypto markets got hammered, digital currency-centric