EigenLayer deposits surpass $900 million amid increased LST caps

Quick Take

  • EigenLayer’s total deposits now exceed $900 million after increased LST caps.
  • Revised caps led to a surge in inflows, currently at more than 410,000 ether.

EigenLayer has recorded a significant jump in user deposits, now exceeding $900 million.

The protocol adjusted deposit caps for liquid staking assets, leading to a surge in total deposits. Today, these reached 410,000 ether ($900 million), nearly a fourfold jump from just a few days ago.

Until a few days ago, EigenLayer had set a re-staking limit under 120,000 ETH and kept deposits on pause. On Monday, the protocol raised its limit, setting a new threshold of 500,000 ETH (equivalent to about $1.1 billion) for all re-staked LSTs. Consequently, the protocol’s total value locked has risen from $250 million to over $900 million. The protocol appears to be on track to cross $1 billion in deposits and reach its maximum threshold.

EigenLayer offers a protocol for users to deposit and “re-stake” ether from various liquid staking tokens, aiming to then allocate those funds to secure third-party networks. The protocol’s stage 1 launched on the Ethereum mainnet in June.

New LSTs are supported

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At launch, EigenLayer allowed users to deposit LSTs from three staking projects: Lido, Rocket Pool, and Coinbase. The protocol has now expanded its range to include six additional LSTs: Swell’s swETH, Stakewise’s sETH, Stader’s xETH, Origin’s oETH, Ankr’s ankrETH and Wrapped Beacon Ether (wBETH).

This increase in caps and offering various LSTs led to a surge in activity, with many depositing funds to participate in the network and earn points. These points may potentially give stakers the opportunity to receive Eigen token rewards in the future, although this remains speculative.

EigenLayer will pause all user deposits once the 500,000 ether limit is reached.

EigenLabs closed a $50 million Series A funding round in March led by Blockchain Capital.


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About Author

Vishal Chawla is The Block’s crypto ecosystems editor and has spent over six years covering tech protocols, cybersecurity, artificial intelligence and cloud computing. Vishal likes to delve deep into blockchain intricacies to ensure readers are well-informed about the continuously evolving crypto landscape. He is also a staunch advocate for rigorous security practices in the space. Before joining The Block, Vishal held positions at IDG ComputerWorld, CIO, and Crypto Briefing. He can be reached on Twitter at @vishal4c and via email at [email protected]

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