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EigenLayer's Restaking Smart Contracts Max Out on Launch Day, Drawing $16M

On its launch day, EigenLayer's three restaking smart contracts reached their maximum limits, pulling in roughly $16 million. This success underscores the strong demand for the restaking market.

EigenLayer, a Decentralized Finance (DeFi) platform, witnessed the three restaking smart contracts hit their maximum limit on the day of its protocol deployment on the Ethereum mainnet. This landmark event drew in more than $16 million, signifying a strong demand for the restaking market.

The three restaking pools of EigenLayer, encompassing stETH, rETH, and cbETH liquid staking tokens, recorded the highest capital inflows within 24 hours. These inflows emerged from "smart money" wallets that are typically associated with crypto traders and institutions known for profitable trading history.

Significant smart money depositors into EigenLayer's pools included an address that had deployed the U.S.-sanctioned Tornado Cash money mixing tool.

EigenLayer's restaking system permits Ethereum stakers, who lock up tokens for Ethereum operations, to reutilize their staked ETH, which earns interest. The aim is to extend cryptoeconomic security to additional applications on the network, thereby enabling the earning of extra rewards.

The limits of EigenLayer's restaking contract are set to be raised in the forthcoming weeks and months, as stated on the protocol's Twitter account.

Steven Quinn, head of Research at staking service provider P2P, told CoinDesk that the substantial early inflows into EigenLayer's smart contracts demonstrate robust confidence in the EigenLayer team and demand for the restaking market.

"Restaking could potentially further boost ETH staking real yield by massively expanding ETH’s utility as collateral to secure additional protocols," Quinn added. This development could present ETH staking as a compelling alternative to DeFi yields, paving the way for healthier competition for ETH capital between sources of real revenue and inflation.