In a recent research report, Coinbase analysts highlighted the potential hidden risks associated with Ethereum's new resttaking protocol, Eigenlayer, aimed at increasing yields through Liquid Restaking Tokens (LRTs). It highlights the risks involved.
Despite promising to serve as the foundation for numerous decentralized applications, concerns about amplified risk and concentration of validators remain.
Assessing the Balance Act: Reclaiming Ethereum’s Promise and New Risks
According to Coinbase (via Cointelegraph), Ethereum re-staking could serve as the “foundation” for a variety of new decentralized blockchain applications, but it could also introduce some new hidden risks. there is.
In an April 2 research note, Coinbase analysts David Han and David Duong highlighted several risks associated with restaking and issuance of Liquid Restaking Tokens (LRT). was identified.
Ethereum's re-staking protocol, Eigenlayer, allows users to earn additional rewards (LRT) for securing actively verified services (AVS) by staking derivative tokens. Derivative tokens will be distributed to users who have already staked Ether via liquid staking protocols such as Lido (LDO).
Upon introducing the Eigenlayer protocol, analysts said that re-staking will be “fairly easy.” Still, one of the features of EigenLayer is that staked tokens committed to one AVS can be staked to another AVS.
Analysts said “returns may increase, but risks may also worsen” as the same funds are allocated to similar validators to increase yields.
Second, the addition of LRT may cause re-stakers to further focus on riskier providers offering the highest yields.
“LRTs may therefore be incentivized to maximize yield to gain market share, but this may come at the cost of a higher (albeit hidden) risk profile. ” write the authors.
Future Frontiers: EigenLayer’s Vision Amid Concerns to Transform Ethereum’s Landscape
Despite the risks, analysts believe that EigenLayer's restaking protocol is poised to become the basis for a wide range of new services and middleware on Ethereum, and could potentially provide a meaningful ETH reward source for validators in the future. I think it has the potential to be produced.”
Mr. Han and Mr. Duong also noted that although the amount of re-staked ETH will continue to increase in the long run, if point farming is discontinued or the initial AVS rewards are lower than expected, Eigenlayer's TVL will decrease. We predicted that the stock could experience a corresponding decline in the short term.
On March 6th, Eigenlayer surpassed financial giant Aave to become the second largest DeFi protocol with $11.5 billion in total value locked (TVL) per DefiLlama, surpassing only Lido, Ethereum's liquid staking protocol. chased.
The market’s enthusiasm for restaking has already been criticized, with Ethereum developers warning that it could lead to excessive leverage.
Meanwhile, proponents of re-staking claim that additional rewards will be provided to those who already stake Ethereum.
Photo: Microsoft Bing
token post | [email protected]
<著作権 © TokenPost. 無断転載を禁じます。 >
