Ethereum-based staking protocol EigenLayer has seen its complete quantity locked (TVL) attain nearly $6 billion after it quickly lifted its deposit cap between Feb. 5 and as we speak.
DeFiLlama information reveals that the protocol at the moment has a TVL of $5.95 billion, nearly thrice greater than its TVL simply 5 days in the past.
This makes it one of many high 5 protocols in TVL rankings, forward of in style decentralized trade Uniswap and lending platforms Spark and Compound.
An estimated $961,000 of the deposits have come from customers depositing Lido’s stETH, $206,000 are deposits of Swell’s swETH and $189,000 are deposits of Mantle’s mETH, BlockIntel information reveals.
EigenLayer itself doesn’t have its personal native token however depends on an open market to safe its community.
On this open market, validators can select to choose into any Actively Validated Service (AVS) of their selection, locking their native staked ETH or liquid staked ETH into these sensible contracts and subjecting them to its slashing circumstances.
TVL caps have been initially launched to forestall one single token from dominating the blockchain and fascinating in doubtlessly dangerous occasions.
The most recent determination to take away TVL caps on liquid staked tokens (LTS) signifies that it’s a constructive time for the staking ecosystem, Amitej Gajjala, founding contributor at liquid restaking answer Kelp DAO, advised Blockworks.
“It’s a step nearer to leveling the enjoying discipline for all depositors and sustaining credible neutrality,” Gajjala mentioned.
For liquid staking protocols, a better TVL means extra room for innovation and development, whereas for LST restakers, this implies accessing related rewards as native restakers, even whether it is only for a restricted time, he mentioned.
Gajjala added, “It’s a glimpse into what the EigenLayer mainnet launch can appear like and the longer term interplay between restakers and AVSs.”