According to CoinDesk: Decentralized finance (DeFi) platform EigenLayer experienced a 207% increase in total value locked (TVL) after raising its liquid restaking cap to 100,000 ether (ETH). The restaking protocol, launched in June, reached the 100,000 cap within hours, with TVL rising from $78 million to $238 million, as reported by DefiLlama. TVL refers to the number of tokens locked on a crypto platform.
EigenLayer periodically raises its liquid staking token cap before initiating a global pause, aiming to allow more users to actively participate in restaking activities, according to technical documents. The protocol enables those staking ETH to restake their assets by depositing liquid staking tokens (LSTs) such as lido stETH (stETH), rocket pool ETH (rETH), and coinbase-wrapped staked ETH (cbETH).
Restaking is a way to earn additional rewards on ETH staked on the main Ethereum blockchain. Users must stake 32 ETH to become network validators, which are entities that provide computing resources to a blockchain for transaction processing.
Future LST cap increases will be determined through a governance process that must be approved by EigenLayer's multisignatory governance system. EigenLabs, the developer of EigenLayer, raised a total of $64.5 million earlier this year, including $50 million in a Series A round led by Blockchain Capital.
