LRT Protocols and Eigen Layer Strategies — review, part 2

EigenLayer lifted the limits for LSD protocols. TVL approached $4 billion. This indicates that earning points has become even more challenging. We’ve decided to explore additional point farming opportunities through restaking protocols, as well as to consider various restaking strategies.

Overview of Blockchain Projects Funding and TVL

Eigenpie

Feature: the highest APR in ETH, guaranteed income, and the highest cap.

Puffer

Feature: Second highest TVL, well-known within the community, likely to be listed on Binance.

EtherFi

Feature: Largest TVL, best liquidity, with the option for ETH unstaking.

KelpDAO

Feature: Third highest TVL, launched by the LST Stader team.

Renzo

Feature: Supported by the VC`c & investors from China, namely OKX/SevenX, Native & LST.

Swell

Feature: LST+LRT, can be combined with Eigenpie for triple points. Swell may launch faster than the others in Q1 2024.

Strategies

swETH/mETH + Eigenpie

Eigenpie will have a 10% airdrop for points, as well as an IDO (with an estimated FDV of $3 million), 60% of which is allocated for point holders.

For every deposited LST ETH, you will receive 1 EigenLayer point per hour. The pre-deposit window will be open until February 9th, 19.00 London time.

Staking swETH on Eigenpie will yield more Pearls if staked now.

An additional benefit of mETH is its higher yield from Mantle, currently standing at ~7.1%, compared to Lido’s 3.3%.

Puffer + stETH

The current advantage of Puffer is its anti-slashing technology and investment from Tier 1 funds, including Binance.

Investor Network and Support Ecosystem for Puffer

The project’s TVL currently stands at approximately $416 million, having grown fourfold in four days. Currently, the project only accepts stETH and wstETH.

EtherFi

EtherFi offers direct withdrawal of ETH on their website (withdrawals take approximately 7 days)

You can also earn EtherFi points with a boost of up to 2x by providing your LRT to the pools.

During the “Mega Week” (from January 31st to February 10th), for every 1 ETH among the first 20,000 staked ETH, 100 EigenLayer points were distributed. Additionally, among those staking eETH during that period, 1 million EigenLayer points were distributed.

Pendle

Pendle offers three restaking strategies:

1. Purchasing the PT token, which provides an increased APY in exchange for burning accrued points.
2. Purchasing the YT token to boost your points by burning your ETH.
3. Providing liquidity and staking tokens from other projects.

These strategies can be used to restake three protocols: Ether.fi, Kelp DAO, and Renzo, each with its own conditions.

Purchasing Pendle tokens (PT) with a high APY in exchange for accruing points

By purchasing PT tokens, it can forfeit LRT tokens from protocols like Ether.fi in exchange for an increased APY. This means that with the purchase of PT, can achieve an APY of 33.51% annually until maturity (June 27).

Purchasing Pendle tokens (YT) to boost points at the expense of burning your ETH

Please note, that your ETH will be burned in the process.

You’re depositing your ETH with an expiration date. Your deposit will be sold in exchange for points and will expire to zero by the set expiry date.

For instance, if you deposit 1 ETH into YT ezETH from Renzo for 80 days, you’ll receive a 28x boost on Renzo points and a 14x boost on EigenLayer points. Ultimately, the number of points will be as if you farmed 14 ETH on EigenLayer and 28 ETH on Renzo, but you’ll lose all your deposited ETH.

Closing thoughts

Depending on the deposit size and if it’s a substantial one, you can participate directly in EigenLayer; otherwise, you can choose an LRT project for a potential drop.

It’s worth noting that EigenLayer is considering a proposal that would limit the acquisition of EigenLayer points if any project dominates more than 33% of the total TVL.

This limitation is primarily aimed at Lido (stETH), which already holds more than 33%. Currently, this is only a project consideration; voting has not yet begun, and points are being farmed as usual.

Puffer looks interesting too, especially for distributing across multiple accounts while they’re still awarding double points in the project. They deposited around $450 million in stETH.

Please note that this article is for informational purposes only and does not constitute financial advice. We strongly encourage you to conduct your own research and consult with a financial advisor if necessary before making any investment decisions.