Adding LSTs to EigenLayer & Raising the Caps
We are excited to share that the six LSTs, garnering over 15k ETH in support during the LST election contest, will imminently join the EigenLayer protocol as restaking assets, accompanied by an increase in restaking caps for current LSTs.
We are excited to share that the six LSTs, garnering over 15k ETH in support during the LST election contest, will imminently join the EigenLayer protocol as restaking assets, accompanied by an increase in restaking caps for current LSTs.
New LSTs in the EigenLayer ecosystem
During the period spanning from October 27th to November 1st, EigenLayer's active restakers and LST contestant holders participated in an on-chain voting process. This voting mechanism allocated one vote for every 1 ETH in restaking or contestant LST capital, resulting in substantial engagement, with over 12.8k wallets and an impressive total of >500k ETH in holdings taking part. The outcomes of this significant participation are detailed in the table below.
These LSTs are now ready to be incorporated as restaking assets within the EigenLayer ecosystem. The operations multisig has initiated the transaction to resume protocol activities. Following the standard 10-day waiting period, the assets will be smoothly incorporated into the system, along with an appropriate adjustment in the cap limits.
Mark your calendars, as this exciting development is scheduled for December 18th at 10 am Pacific time. It's worth noting that this approach deviates from the initial plan of sequentially adding each LST. Instead, all six LSTs will be introduced simultaneously, a decision driven by engineering efficiency and the aim to expedite onboarding. This streamlined approach stands to benefit not only the LST protocols, but also the holders and the EigenLayer community. Below are the LSTs set to be added:
After the public contest, several LST teams have shown interest in being added to the ecosystem. Liquid Collective with LsETH, Frax with sfrxETH and mETH by the Mantle team are conducting audits and executing plans to onboard to EigenLayer in early 2024.
Raising the restaking caps
As we introduce the new LST additions to the mainnet, the caps for all current LSTs (rETH, stETH, cbETH) will simultaneously increase. These updated caps, crafted with security as our top priority and in alignment with our gradual rollout strategy, will establish a uniform 200k cap for each LST, increasing from the 100k cap set on cbETH, rETH and stETH. A global pause mechanism will come into effect as the total LST TVL approaches roughly 500k ETH.
This means that:
- When the cumulative restaked capital for LSTs hits the 500k ETH milestone, the multisig governance will enact a global pause, temporarily halting deposits.
- If an individual LST reaches the 200k ETH threshold, its respective pool will be temporarily closed to new deposits.
- As long as the global 500k ETH limit remains unmet, other LSTs will continue to accept deposits.
As always, native restaking will remain uncapped.
The upcoming cap increase on December 18th marks the fourth opportunity this year for our community to restake on EigenLayer with LSTs. We initiated this journey six months ago and have since been profoundly grateful for the community's unwavering support, resulting in the current achievement of 184k ETH in restaked capital across native and LST restaking.
We eagerly anticipate the future, where we will open the doors for trust capital to flow freely into the ecosystem without caps, bringing us closer to the Stage 2 mainnet launch of Operators and EigenDA in the first half of 2024.