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CryptoIntelligence 2024-04-23 18:02:03

Ethereum Restaking Protocol Faces Yield Crisis as Growth Outstrips Security Needs, Warns Industry Expert

EigenLayer, recognized as the largest restaking protocol on Ethereum based on total value locked (TVL), is reportedly facing a significant yield crisis, industry experts suggest. The protocol’s TVL has seen a swift rise, but this growth may be outstripping the capabilities of its Actively Validated Services (AVS), potentially leading to a drastic decrease in yields. This concern was highlighted by Chudnov, a pseudonymous builder at 3Jane derivatives exchange, who noted on an April 22 X post: “EigenLayer has >$15B in TVL but AVSs will actually need less than 10% of that for security, which means yields may fall off a

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