Ebisu Intern

intern @ebisu_finance

[ApeinDaily @apeindaily]

I am just playing with liquids..

I like all of them. @ebisu_finance

#eigenlayer #lrt #lst $eth

[Ebisu 🎣 @ebisu_finance]

Join our #TwitterSpace with leading AVSs, LRTs, & researchers to discuss the economic dynamics emerging on @eigencloud

⏰Tues Apr 9, 9AM PST/4PM UTC

RSVP: https://t.co/lfusphEWm7

[Ebisu 🎣 @ebisu_finance]

Emergence of Offchain Restaking Agreements Between AVSs & LRTs

Major AVSs and LRTs are circumventing EL as a pricing venue for ETH economic security; it makes sense, in certain scenarios AVSs will want a fixed rate for a certain amount of economic security for a given duration.

As for LRTs, TVL of ETH in EigenLayer > predicted demand for restaked ETH in the short-run, so LRTs are wanting to secure exposure to high-quality AVS rewards for their users via offchain agreements.

See examples below👇

[Ebisu 🎣 @ebisu_finance]

With @eigencloud mainnet around the corner, everyone should be mindful of the under-explored challenges surrounding AVS economics.

• Mobility of EL Stakeholders
• AVS Reward Volatility
• AVS Resource Planning

1/10 🧵👇

[Ebisu 🎣 @ebisu_finance]

Compilation of resources on restaking, LRTs, LRTFi🐟👇

Creds: @Shoalresearch @tarunchitra @mikeneuder @SevenXVentures @0xroylu @warcin101 @bankless @LongHashVC @redstone_defi @defidegen2630

[Ebisu 🎣 @ebisu_finance]

🧵LRTs & EigenFi will Drive the Next Wave of DeFi Adoption

Ethereum's PoS shift surged ETH staking to $89.8B creating a $40B LST market.

Now, @eigencloud introduces new yield opportunities for ETH hodlers.

Evolution of EigenFi & yield projections👇

[Ebisu Intern @eigendollar]

wen eigenlayer flip lido?

ebisu intern think by May!

https://t.co/ACw8zHM1hA

[DefiLlama.com @DefiLlama]

.@eigencloud is now the second-largest project in DeFi with over $11.2 billion in TVL

[Ebisu Intern @eigendollar]

Eigenlayer is eating the world

@ebisu_finance @eigencloud @pmarca

[Gajesh @gajesh]

eigen will eat the world

[Ebisu Intern @eigendollar]

@ebisu_finance @Kairos_Res @Ianunsworth @TedDeFi 🎣🎣🎣

[Ebisu Intern @eigendollar]

@tenderize_me 🎣🎣🎣

[Ebisu Intern @eigendollar]

@ebisu_finance @EthereumDenver @tenderize_me @ether_fi @KelpDAO @arbitrum @staderlabs @Connext @therollupco @P2Pvalidator @ssv_network @ThenaFi_ @asymmetryfin 🎣🎣🎣

[Ebisu 🎣 @ebisu_finance]

See you at the LSDFI Summit @EthereumDenver🎣

Panels on everything LSTs & LRTs in DeFi by
@tenderize_me @ether_fi @KelpDAO @arbitrum @staderlabs @Connext @therollupco @P2Pvalidator @ssv_network @ThenaFi_ @asymmetryfin @ebisu_finance

[Ebisu Intern @eigendollar]

@LippmanEthan @eigencloud 🫡🎣

[Ebisu Intern @eigendollar]

@0xDuckworth @eigencloud tremendous research sir

[ethan @ethan_r13n]

Despite not being fully live, there's:
$6.8B (2.48M ETH) restaked in @eigencloud
$3.1B (1.14M ETH) restaked via LRTs

LRTs mean liquidity, higher yield, airdrops, and new DeFi use cases... but what are the risks?

[Duck @0xDuckworth]

Luckily theres teams like @ionprotocol and @EbisuFinance building asset-specific products that internalize and underwrite the endogenous infrastructure risks to LRTs.

https://t.co/czYfA71hR7

[Ebisu 🎣 @ebisu_finance]

Guide to Underwriting LRT Risks

LRT Wars are in full swing fueled by the promise of liquidity, higher yield, airdrops, and new DeFi use cases.

What risk-reward tradeoffs do @eigencloud & LRTs present?

How can DeFi protocols underwrite LRT risk to adopt them properly? 🧵

[Ebisu Intern @eigendollar]

anon, maybe u fumbled the bag this valentine's, but tmr's article w/ @ebisu_finance @ionprotocol & @Shoalresearch will tell u how to save ur LRT bags🫡

LRT > LUV

[Ebisu 🎣 @ebisu_finance]

We’re dropping some heat with @ionprotocol & @Shoalresearch to answer what we think is the most important topic around LRTs 👀🎣

What are your burning questions about LRTs/LRTFi?

[ethan @ethan_r13n]

@DefiIgnas Don't think we'll have an end-state in sight for the LRT wars for 1 yr+
https://t.co/XbNF1jaOba

[ethan @ethan_r13n]

Re: LRT Wars

I think LRT is a winner-take-most market structure that will take 1yr+ to solidify.

There will be multiple winners because:

The risk profile between LRTs will vary depending on the LRT's Operator set & which AVSs are being secured.

To start, the incremental slashing risk from restaking will be low given @eigencloud's slashing veto committee & screening of AVSs.

But, in a future world with infinite AVSs, there are 2^n -1 permutations of AVSs that can be secured by an Operator, with n being # of AVSs secured.

So, there can be lower-yielding, conservative LRTs and higher-yielding, risky ones - analogous to why there are bond credit ratings.

And, given low switching cost between LRTs, off-chain LP agreements, and low risk of AVS slashings in the short run, first mover advantages may not be too strong.

Furthermore, the design space for LRTs is bigger than LSTs given AVS rewards dynamics.