Dissatisfied Depositors Flee EigenLayer Following Controversial EIGEN Airdrop, Karak Rises
Summary:
EigenLayer, a leading Ethereum restaking protocol, has seen a surge in withdrawal requests, approximately 12,412 in the last three days, following dissatisfaction over its proposed EIGEN airdrop. Significant jurisdictions including the US, Canada, and some African and Asian countries were excluded from the airdrop, triggering unrest among depositors. The multiplication of withdrawals could decrease the total value locked in EigenLayer from $14.8 billion to nearly $13 billion. In contrast, the TVL of Karak, another restaking protocol, increased by 20.5% to $439 million, stirring speculation regarding its potential rise in the market.
EigenLayer, the prominent Ethereum restaking protocol, has encountered over 12,412 withdrawal applications due to dissatisfaction concerning its proposed EIGEN airdrop. The surge of withdrawal applications commenced on April 29; EigenLayer experienced over 4,336 daily withdrawals which climbed to 6,496 on April 30, as per Dune data. Following the release of the white paper for the imminent EIGEN token on April 29, the restaking protocol accumulated over 12,412 withdrawals in three days. However, several regions were barred from the airdrop, notably the United States, Canada, and several African and Asian nations. There are over 107,000 distinct depositors in EigenLayer, according to Dune. The recent figure of 12,412 withdrawals in three days indicates that about 11.6% of unique depositors are leaving the protocol. Although the measure of individual withdrawals remains unknown, the 11.6% of recorded withdrawals would reduce the current total value locked (TVL) of $14.8 billion in EigenLayer to approximately $13 billion. Given that EigenLayer imposes a seven-day withdrawal processing timeframe, the impact of the mass withdrawals will become evident only in the upcoming weeks. Author of 'NFT: From Zero to Hero' and intergovernmental blockchain expert, Anndy Lian suggests that the airdrop exclusion of key economic regions from EigenLayer has spawned widespread dissatisfaction which will detrimentally impact the protocol's TVL. He shared with Cointelegraph that "Participants from these regions might have contributed significantly to EigenLayer’s TVL. Their exclusion could lead to a decrease in the overall TVL, especially if they were actively restaking their assets." EigenLayer’s TVL declined over 4% within the last week while Karak's TVL augmented 20.5% to $439 million, becoming the second-largest restaking protocol on Ethereum, according to DefiLlama. Speculation has risen that Karak may potentially succeed EigenLayer following the disillusionment caused by the EIGEN airdrop. Besides the failed airdrop, Lian notes that Karak introduces technical enhancements to users and provides more adaptable restaking tokens: “Karak introduces unique technical features such as multi-asset restaking and a plug-and-play development environment. These could provide Karak with an edge in attracting developers and users seeking a more versatile restaking platform.”
Published At
5/1/2024 11:14:50 AM
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