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Rapid Growth of Liquid Restaking Protocols
What are Liquid Restaking Protocols?
Which Protocols are Worth Participating in?
As the restaking track continues to gain market attention, the liquid restaking protocol developed around EigenLayer has also seen rapid growth over the past few months. According to data from DeFiLlama, the Total Value Locked (TVL) of the liquid restaking protocol has increased more than 8 times since the end of last year, reaching a value of over $3.5 billion.
To further explore the potential opportunities in the restaking track, DWF Ventures released a track introduction today, outlining the potential behind the concept of liquid restaking.
The rise of liquid restaking protocols is not only because these protocols offer higher staking yields and greater ease of operation compared to EigenLayer, as well as the ability to earn “Liquid Restaking Tokens (LRT)” for participating in other DeFi protocols. Currently, the biggest attraction is the ability to earn rewards from both “EigenLayer+Liquid Restaking Protocol”.
However, it should be noted that liquid restaking protocols are products that have been packaged through various smart contracts and therefore carry a higher protocol risk than simply “staking Ether”. This is similar to the concept of “nested dolls” during the past DeFi Summer period.
There are currently many liquid restaking protocols in the market, and most of them have not yet been launched, so investors must seize the opportunity to participate. In addition to Ether.fi, the earliest launched and highest TVL protocol, other representative projects such as Puffer Finance, invested by Binance, and KelpDAO and Renzo, which have online reward systems, are also worth participating in.
Many DeFi projects have also started integrating LRT, including decentralized stablecoins, collateralized lending, liquidity mining, currency markets, and more. In the future, we will see more and more DeFi protocols integrating LRT into their systems.
