EigenLayer Crypto’s Biggest Project This Year Unpausing Restaking Deposits

EigenLayer by Eigen Labs announces the removal of all Liquid Staking Token (LST) caps and unpausing restaking deposits from next week. EigenLayer, the first restaking protocol on Ethereum blockchain, continues to announce groundbreaking updates becoming the biggest crypto project of the year.

EigenLayer Announces Unpausing Restaking Deposits

In an official announcement, EigenLayer said it is removing caps on all liquid staking tokens (LST) and restarting restaking deposits from April 16. This marks the completion of the phased rollout of EigenLayer, fostering a wide-open and dynamic staking ecosystem.

“EigenLayer’s development has been guided by a commitment to stability and growth. The successful launches of Stages 1, 2 and 3 laid the groundwork for a thriving ecosystem of restakers, operators, AVSs, and rollups,” stated Eigen Labs.

Will the full potential of the EigenLayer network be unleashed by removing the LST caps, the protocol looks to implement protocol awards. A proposal recommends capping them at 33% for a user to balance neutrality and decentralization.

Potential of Restaking

EigenLayer has unveiled restaking on Ethereum, enabling the use of currently staked ETH to secure additional dapps and infrastructure. EigenLayer proposes to leverage the robust security of the Ethereum network to secure a broader range of dapps, foster permissionless innovation, and make it easier for developers to build onchain.

As per DeFiLlama, 3.88 million ETH worth $12.67 billion have been deposited by restakers into the protocol. This indicates the growing demand for restaking with the benefits of added rewards.

EigenLayer was launched on the Ethereum mainnet on April 9. Since then, it has announced AVS mainnet launch and six new Actively Validated Services (AVS). Coinbase Staking has also joined EigenLayer as an operator, tapping the potential in the restaking market.

Additionally, Coinbase has also warned about the risks in Ethereum’s growing restaking sector. It implies that high returns could encourage Liquid Restaking Token (LRT) providers to participate in several restaking practices, which would worsen financial and security risks.

Also Read: Crypto Market Crash — Here’s Why Bitcoin, ETH, SOL, XRP, SHIB Fell Sharply

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Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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