Posted 2/20/2024, 12:00:00 PM
DeFi Sees Renewed Hype and Risk With Rise of Liquid Staking Tokens
- Decentralized finance (DeFi) on Ethereum sees resurgence with rise of liquid restaking tokens (LRTs) built on EigenLayer protocol
- Over $2 billion poured into liquid restaking protocols like Ether.Fi and Puffer, allowing active trading of EigenLayer deposits
- Experts warn restaking carries risks; "points" incentives offered by platforms are speculative
- Convoluted points systems, high yields, and risky trading strategies reminiscent of 2021's yield farming boom and bust
- Supporters insist real substance beyond hype, with potential to support development of Ethereum apps and infrastructure