EigenLayer has created a stir in the crypto community with the announcement that it has raised the cap for Liquid Staking Tokens. Join us to find out the details. Don’t forget to read to the end to get free NFT from EigenLayer
What is EigenLayer?
EigenLayer is a protocol built on Ethereum that introduces restaking, a new primitive in crypto-economic security. This primitive enables the reuse of ETH on the consensus layer.
With EigenLayer, individuals who have staked ETH conventionally or through Liquid Staking Derivatives (LSDs) projects can leverage these liquid tokens and restake them via the EigenLayer smart contract, thereby earning additional rewards.
Currently, EigenLayer is supporting 4 forms of ETH including:
- stETH: Lido Staked ETH
- rETH: Rocket Pool ETH
- cbETH: Coinbase Wrapped Staked ETH
- ETH: Beacon Chain ETH
New Cap Increase for Liquid Staking Tokens
On August 22, EigenLayer officially raised the cap for Liquid Staking Tokens (LSTs), including stETH, rETH, and cbETH. This means that users can deposit more of these tokens into EigenLayer. The increase in the cap supports EigenLayer’s mission to broaden access to restaking opportunities.
However, EigenLayer will implement a global pause when any LST reaches a milestone of 100,000 tokens restaked. This is to ensure the safety and security of assets.
In less than 1 day, the TVL caps were hit and EigenLayer paused. This was due to the huge number of users who tried to deposit their LSTs. At one point, gas fees on Ethereum reached $32, according to one participant’s comment.
Most of the Liquid Staking Tokens (LSTs) deposited into EigenLayer are stETH, the token that represents staked ether in Lido Finance. According to statistics from TK Research, nearly 165 million USD worth of stETH has been locked in EigenLayer’s smart contract. This brings the total value locked to nearly 237 million USD, which is more than 2 times the previous day.
EigenWorld: EigenLayer’s Second NFT Collection
To celebrate the success of raising the cap for Liquid Staking Tokens, EigenLayer launched EigenWorlds, its second NFT collection on August 22.
Anyone can mint EigenWorlds NFTs, but there are three tiers based on the criteria of your wallet:
- Restaker: You have restaked in EigenLayer.
- Collector: You hold the Zora NFT.
- Base Layer: You have had no interaction with the EigenLayer ecosystem.
The minting period is from August 23, 1 PM EST to August 30, 1 PM EST. You can mint your EigenWorlds NFTs from now until August 30 at https://mint.eigenlayer.xyz/
