EtherFi continues its growth. Along with growthCustom layernumerous protocols Liquid Restocking they saw the day. Their goal is to make deposits liquid by return deposit. How Liquid Staking protocols can do this with staking. EtherFi is among the leaders of this ecosystem.
EtherFi is approaching 4 billion TVL
EtherFi is the pioneer of Liquid Restocking protocols. This allows you to deposit LST (Liquid Staking Tokens) for re-staking on EigenLayer, without blocking your tokens. So when you deposit, the protocol issues a token eETH, which can then be exchanged or used in DeFi. This token is called LRT for Liquid Restaking Token.
Launched less than a year ago, in May 2023, the EtherFi protocol has seen significant growth. It actually counts now $3.74 billion in TVL. With this TVL log captures more than 30% market share on LRT.
This enthusiasm was fueled in particular by the point system created by EtherFi in anticipation of the launch of its ETHFI governance token. It was launched on March 18 and was marked by massive airdrops to protocol users.
The point program is now in its second season, during which 5% of the total supply of ETHFI tokens will be distributed through a new airdrop.
Renzo: a competitor who is gaining momentum
Obviously, EtherFi is not the only protocol that offers this type of service. Other protocols such as Renzo, Puffer or KelpDAO, to name just a few, are also experiencing significant growth.
However, Renzo stands out from the crowd and is now just behind EtherFi. Although launched in January this year, Renzo already has $2.96 billion in TVL. This ranks it second among Liquid Retaking protocols.
In practice, Renzo’s meteoric rise can be partly explained by his ubiquity. The protocol is deployed on two blockchains (Ethereum, BNB Chain) and 4 layers 2 (Arbitrum, Base, Mode and Linea).
Conversely, EtherFi is only available on Ethereum. This can prove to be a problem as the Ethereum blockchain is not accessible to everyone due to high transaction fees.
Especially since deploying Renzo on an L2 like Base can only be beneficial for its development. Indeed, Base has been experiencing unprecedented enthusiasm for several weeksnotably led by the rise of several memecoins.