Weekly Alpha #32 - Restake on EigenLayer With Ether.fi
Weekly Alpha #32 - Restake on EigenLayer With Ether.fi
Latest DeFi Alphas Delivered in a Concise Newsletter.
Welcome to the latest edition of Weekly Alpha.
Every Friday (Sorry I’m late), I deliver insights on the cryptocurrency market, emerging projects, macroeconomic trends, and DeFi directly to your inbox.
In this edition of The Weekly Alpha:
🗞️ Weekly DeFi News Digest
🧑🌾 Stake ETH On Ether.FI
📈 Market overview
Your Weekly DeFi News Digest 🗞️
In this section, I highlight the week's most impactful DeFi news. This way, you can bypass the chatter on Twitter and concentrate on the essential updates.
SEC Approves Spot Bitcoin ETFs in Landmark Decision
Spot bitcoin ETF volumes eclipse $4.5B on first day of trading
Wise Lending drained of $440K worth of crypto in apparent flash loan exploit
Restaking with Ether.fi
The narrative around restaking is currently very popular, particularly with the substantial growth in market capitalization of EigenLayer, evidenced by both LST tokens and EigenPod. This presents numerous opportunities for builders to develop on the EigenLayer platform.
In this section of the newsletter, we will discuss Ether.fi and explore why it represents an excellent opportunity for DeFi enthusiasts and airdrop hunters.
What is eETH?
Ether.fi introduces eETH, a Liquid Restaking Token. This token enables users to stake their ETH, earn staking rewards, and automatically restake their ETH in EigenLayer. Additionally, weETH, which is a non-rebasing version of eETH, is available as a wrapped token. This variant of eETH can be utilized across various platforms within the DeFi ecosystem.
Why use eETH?
using eETH comes with risks but if you have missed staking your LSTs on EigenLayer Ether.fi is kind of an extension of it, it is a liquid restaking token, so basically you can stake your ETH and they will stake it automatically for you on EigenLayer with a pod and you will start earning EigenLayer points on top of the Ethereum beacon chain yield and Ether.fi loyalty points, so if you are an airdrop farmer, this is a great play to expose you to two different solid airdrop at once.
There are numerous DeFi opportunities available on protocols like Curve and Balancer. However, to take advantage of these, you need to wrap your eETH.
How to Stake ETH to Ether.Fi?
If you're interested in staking your ETH on Ether.Fi to earn rewards, the process is quite straightforward. Just visit Ether.Fi, where you can deposit your ETH. In return, you'll receive eETH and begin earning rewards. After completing the transaction, there's nothing more for you to do. Your eETH balance will remain in your wallet.
You can also wrap your eETH to receive weETH, which can then be used in various DeFi applications.
Currently, there are multiple DeFi protocols, including Pendle, Curve, and Balancer, that can enhance your loyalty points rewards.
Conclusion 🧠
I believe that we will witness the integration of multiple restaking protocols with EigenLayer and the Ethereum beacon chain. The concept is quite ingenious. If you, like me, are anticipating an EigenLayer airdrop, it could be a strategic move, especially since it eliminates the need to wait for an increase in the restaking cap.
Weekly DeFi Market Update 📈
In this section, we'll take some time to examine useful metrics within the Ethereum ecosystem.
Daily Active Addresses
zkSync continues to dominate the Layer 2 ecosystem in terms of daily active addresses, showing an increase of over 116% in the last 30 days. This surge is primarily attributed to airdrop farming.
Ethereum Mainnet Stats
The Total Value Locked on Ethereum mainnet has been growing steadily for the past few months. According to data from Artemis, it stands at $30 billion at the time of writing this article.
The market capitalization of stablecoins on Ethereum is also increasing rapidly, which is generally a positive indicator. It most likely means that liquidity will be deployed into the market.
How are you positioning yourself for the upcoming bull market?
Wrapping up for this week. For daily DeFi updates, follow me on Twitter
None of the information in this newsletter constitutes financial advice. While I personally use most of the protocols that I discuss, it's important to understand that they involve substantial risk. Don’t invest what you can’t afford to lose