EigenLayer’s Restaking Smart Contracts Reach Max Limit on Same Day as Mainnet Launch, Pulling in $16M
Notable depositors to EigenLayer pools include an address using the US-sanctioned Tornado Cash money-mixing tool and another address linked with Hassan Bassiri, former vice president of portfolio management at crypto hedge fund Arca (Nansen).
EigenLayer’s three restaking smart contracts reached their maximum limit of 3,200 liquid staking tokens within 24 hours of launch on Ethereum mainnet, garnering approximately $16 Million in value on day 1.
EigenLayer’s initial success indicates strong demand in the restaking market.
EigenLayer, the much-touted DeFi platform, saw its first restaking smart contracts reach full capacity on Wednesday – the day of its initial deployment on Ethereum mainnet. These smart contracts enable people to restake ether (ETH) to secure other platforms, and generated 9,600 tokens worth over $16 Million as transactions.
EigenLayer’s three restaking pools – comprised of stETH, rETH and cbETH liquid staking tokens – have seen the highest capital inflows in 24 hours from “smart money” wallets tracked by Nansen Blockchain Analytics Firm.
Nansen’s smart money wallets represent crypto traders and institutions with an established record of profitable trades. Notable contributors to EigenLayer’s stETH, rETH, and cbETH pools included an address using Tornado Cash as well as one associated with Hassan Bassiri, former vice president of portfolio management at crypto hedge fund Arca.
EigenLayer’s restaking system enables Ethereum stakers – those who voluntarily store tokens to help run Ethereum – to reuse their interest-earning staked ETH to “extend cryptoeconomic security to additional applications on the network and reap additional rewards,” as stated in its documents. Eigenlayer plans on increasing restaking contract limits in coming weeks and months according to their Twitter account.
EigenLayer’s smart contracts attracted large early inflows that signalled “confidence in their team and demand for restaking market,” as explained by P2P staking service provider P2P’s Head of Research Steven Quinn to CoinDesk.
“Restaking could potentially increase ETH staking real yield by significantly expanding ETH’s utility as collateral to secure additional protocols,” Quinn noted. This would also make ETH staking an attractive alternative to DeFi yields which rely heavily on unsustainable token inflation; creating competition for capital between real revenue sources and token inflation can only help applications and Ethereum itself!
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Diana Biggs: Building Early-Stage Ventures in Web3 EigenLayer announced in March 2023 its successful Series A funding round, featuring participation by Blockchain Capital, Electric Capital, Polychain Capital, Hack VC, Finality Capital Partners and Coinbase Ventures.
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Sage D. Young is a tech protocol reporter at CoinDesk and holds several non-fiat currencies (NFTs), gold and silver coins as well as BTC, ETH, LNKN, AAVE ARB PEOPLE DOGE OS HTRs as his investments.
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