Omni Network Secures $600M Ether Restaking Deal with Ether.Fi to Bolster Security
Summary:
Omni Network has inked a $600 million Ether restaking deal with Ether.Fi to bolster its security. The funds will fortify both the Omni Network's testnet and mainnet. Omni Network, launched in 2021, aims to reduce latency and address ecosystem fragmentation through secure connections between Ethereum rollups via restaking. The $600 million represents about 33% of Ether.Fi’s total value locked (TVL). Ether.Fi is currently the world's largest liquid restaking protocol. The funds will be restaked on EigenLayer, the largest Ethereum restaking protocol with more than $10.3 billion in TVL. The new partnership follows after venture firm Andreessen Horowitz announced a $100-million funding round for EigenLayer. Additionally, investor interest in restaking protocols like EigenLayer increased after the removal of its staking cap.
Omni Network has landed a $600 million Ether (ETH) restaking agreement with Ether.Fi, with the funds to be directed towards boosting the security of both the Omni Network and EigenLayer. The rather substantial sum will be instrumental in fortifying both the testnet and mainnet of Omni, as revealed in a March 4 social media post by the Omni Network. It added, "We're excited to declare a commitment of $600M of staked ETH from @ether_fi to safeguard the Omni Network. This unprecedented maneuver places us at the cutting edge of the burgeoning restaking arena."
Omni Network is an interoperability blockchain on layer-1 dedicated to creating secure connections between Ethereum rollups through restaking, with the intent to cut down on latency and mend ecosystem fragmentation. The Ether worth $600 million signifies approximately 33% of Ether.Fi’s aggregate value locked (TVL) pegged at $1.88 billion. At present, Ether.Fi is the largest liquid restaking protocol in the world, with its TVL escalating over 163% in the previous month according to DefiLlama data.
Moreover, the Ether amounting to $600 million will be restaked onto EigenLayer, the biggest Ethereum restaking protocol at this moment, boasting a TVL exceeding $10.3 billion. This new strategic alliance was announced scarcely two weeks following the disclosure by venture capital firm Andreessen Horowitz (a16z) of a $100-million fundraising round in favor of EigenLayer. The protocol also rounded off a $50-million funding round in March, spearheaded by Blockchain Capital.
Established in 2021, EigenLayer is designed to facilitate validators and stakers to restake liquid-staking derivative tokens like Lido Staked Ether and RocketPool’s rETH to solidify and validate other networks. Additionally, these assets can be utilized across other decentralized finance (DeFi) protocols to rake in added yield. Liquid staking is currently the largest protocol category on DefiLlama, holding a total TVL of $54.7 billion, while restaking protocols hold the sixth position, with a total worth of $10.305 billion. Almost the entirety of total TVL of $10.305 billion linked with restaking protocols is accounted for by EigenLayer’s TVL.
The inclination of investors towards restaking protocols like EigenLayer saw a boost on February 5 with the protocol temporarily doing away with its staking cap to encourage organic growth. During this restaking period, EigenLayer’s TVL witnessed a surge of over 181%, scaling up to $6.05 billion on February 10 from a modest $2.15 billion on February 5. While a new staking cap has been introduced, the project aims to erase this limitation permanently in the future.
Published At
3/4/2024 5:50:10 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.