CDS Crypto News DeFi Sector Sees Emergence of Liquid Restaking Valued at 600 Million Dollars
Crypto News

DeFi Sector Sees Emergence of Liquid Restaking Valued at 600 Million Dollars

The surge in total value locked in liquid restaking tokens is accompanied by concerns over potential risks to the peg of these tokens due to mass Ether staking withdrawals, while the Hector Network community grapples with another setback.

221
Defi Sector Sees Emergence Of Liquid Restaking Valued At 600 Million Dollars

Crypto News- Liquid restaking tokens are making waves in the DeFi space, with EigenLayer-based protocols like Ether.Fi and Kelp DAO leading the charge. This emerging sector recently reached a milestone, locking in over $600 million in total value. Users stake their Ether, automatically restaking in EigenLayer, earning liquid restaking tokens. Speculation about potential airdrops adds excitement, but the Ethereum community debates the risks. EigenLayer’s team, led by founder Sreeram Kannan, is addressing concerns ahead of the mainnet launch in H1 2024.

DeFi Sector Sees Emergence of Liquid Restaking Valued at 600 Million Dollars

Celsius’s $1.6 billion Ether withdrawal caused a bottleneck, raising concerns for Lido and its stETH token, with over $23 billion in circulation. Analysts, like Riyad Carey, fear liquidity issues, especially in leveraged positions on Aave. Lido claims stETH’s liquidity is sufficient, but post-Shapella upgrade, liquidity declined. Lido explores measures to secure stETH liquidity, including a proposal for a liquidity assessment report.

Hector Network’s Devastating Loss: $2.7M Unauthorised Withdrawal

Hector Network faces turmoil as $2.7 million is illicitly withdrawn from an $11 million pool, impacting investors with a 22% loss. This adds to Hector’s troubles, with a $100 million treasury plunge to $16 million and a 99% drop in the governance token’s value. The breach involves transferring $11 million in USDC, highlighting security issues totaling around $40 million in losses. Hector Network’s core team remains unreachable for comments.

Data of the Week: LayerZero Messages Surpass 100 Million

LayerZero’s messaging platform hits 100 million messages, fueling speculation about an airdrop snapshot for the LayerZero token. Co-founder Bryan Pellegrino clarifies that the snapshot has not occurred yet, emphasizing transparency in communication about the anticipated token release.

Defi Sector Sees Emergence Of Liquid Restaking Valued At 600 Million Dollars
Sources:dlnews

Leave a comment

Leave a Reply

Related Articles

Sui Blockchain Faces First Major Outage: What Happened and What’s Next

Sui blockchain faces its first major outage—learn what happened, the impact on...

MicroStrategy Stock Reaches New High as Bitcoin Surges Above $98,000

MicroStrategy’s stock surged to a new all-time high as Bitcoin reached $98,000,...

Mysten Labs Resolves Sui Blockchain Outage, dApps Resume Functioning

Mysten Labs Resolves Sui Blockchain Outage, dApps Resume Functioning

Top 3 Cryptos on November 21: Qubetics Soars as Ethereum and Solana Face Resistance

Top 3 Cryptos on November 21: Qubetics Soars as Ethereum and Solana...