Category Archives: Smart Contracts
Ethereum Competitors: Rivals in the Smart Contract Space – Analytics Insight
While Ethereum stands as a pioneer in the world of smart contracts, a myriad of competitors has entered the arena, vying for a place in the decentralized future. This article explores Ethereum competitors in the smart contract space, dissecting their unique features, advantages, and potential impact on the evolving landscape of blockchain technology.
Begin by revisiting the role of smart contracts in Ethereums legacy and how they revolutionized the blockchain industry. Understand the significance of Ethereums contributions to decentralized applications (DApps) and the broader smart contract ecosystem.
Delve into Binance Smart Chain as one of Ethereums prominent competitors. Explore its architecture, consensus mechanism, and how it seeks to offer a faster and more cost-effective alternative for developers deploying smart contracts.
Unpack the innovative approach of Polkadot in the smart contract space. Highlight its interoperability features, enabling different blockchains to seamlessly communicate with each other. Assess how Polkadot addresses scalability and customization challenges.
Explore Cardanos unique approach to smart contracts, emphasizing a research-driven and peer-reviewed development process. Examine the Cardano Settlement Layer (CSL) and the importance of formal verification in enhancing security and reliability.
Investigate Solanas high-performance blockchain architecture and its impact on smart contracts. Understand how Solanas unique consensus mechanism, Proof of History (PoH), and Proof of Stake (PoS) enhance scalability, making it an attractive option for developers.
Examine Tezos as a self-amending blockchain, allowing for on-chain governance and protocol upgrades. Understand how Tezos aims to provide a robust platform for smart contracts with a focus on long-term sustainability and adaptability.
Explore Avalanches consensus protocol and subnets, providing a platform for creating custom blockchain networks with unique rule sets. Assess how Avalanche enhances scalability and offers flexibility for deploying smart contracts.
Conduct a comparative analysis of the features, advantages, and specific use cases of Ethereum and its competitors. Understand how each platform addresses scalability, security, and developer-friendly features.
Explore the ongoing developments, upgrades, and emerging technologies in Ethereum and its competitors. Assess how these advancements impact the scalability, security, and overall potential of smart contracts on each platform.
The landscape of smart contracts is continually evolving, with Ethereums competitors bringing diverse approaches to the table. As blockchain technology matures, developers and users alike have a plethora of options to consider, each contributing to the decentralized future in its unique way.
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Ethereum Competitors: Rivals in the Smart Contract Space - Analytics Insight
Cardano Smashes Smart Contract Growth, Silencing Critics – West Island Blog
The Cardano network has once again smashed through prior limitations and silenced skeptics, marking yet another triumph in its journey. Users are flocking to leverage its robust smart contract capabilities, evidence of which is encapsulated in a newly-achieved benchmark of activity.
An upsurge in Cardanos Plutus V1 and V2 script use has been documented, showcasing a remarkable growth in the platforms smart contract utilization. As of January 22, a total of 24,050 smart contracts have been consummated using these Plutus scriptsa significant leap from the 14,379 recorded at the outset of the year.
This accelerated engagement with smart contracts can be pinpointed to January 9, a date that now signals a pivotal uptick in network usage. Particularly, the execution of smart contracts on Cardano employing Plutus V2 scripts surged from 8,270 to a substantial 12,890, with that number further escalating to 17,718 shortly thereafter.
The ascent of Plutus V2 as the scripting language of choice over its predecessor is expected. With its advent, Cardano aimed at optimizing user costs and boosting script throughputa move that bolstered the efficacy and attractiveness of the network.
This validation of Cardanos utility starkly contradicts critics like the crypto research firm K33, which had previously dismissed the networks significance. K33 went as far as to suggest that transactions on Cardano were largely concocted by a cohort of bagholders without any substantive evidence of genuine use.
However, the robust activity recorded and the series of enhancements emphasizing the networks evolving architecture tell a different story. In fact, Dan Gambardello of Crypto Capital Venture has been vocal about the networks transformation since the last cycle of market enthusiasm, particularly noting the advanced state of Cardanos smart contract functionality. Gambardello speculates that these innovations are precisely why ADAs value could soar to new heights during the next bull market phase.
The ecosystems vitality is reflected not just in speculation but in real indicators of growth. The preceding year witnessed a burgeoning of DeFi engagements within the network. Despite a recent downturn, projections indicate an imminent revitalization. Further cementing these optimistic outlooks is the burgeoning development activity on the platform, which now includes the emergence of Social Finance (SocialFI) initiatives.
Enthusiasts and Cardano community members alike are eagerly anticipating the introduction of a fiat-pegged stablecoin, a development many believe will augment Cardanos appeal and functional diversity. Such a milestone could potentially entice substantial capital inflows, bolstering not only the networks utility but potentially enhancing ADAs market valuation as well.
In a technological landscape as dynamic and rapidly evolving as the cryptosphere, Cardanos commitment to innovation and practical utility remains a beacon, promising an ecosystem rich with possibility and growth.
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Cardano Smashes Smart Contract Growth, Silencing Critics - West Island Blog
Blockchain Infrastructure Protocol Axiom Secures $20M in Series A Funding – Coinspeaker
With Axioms smart contract infrastructure, developers, burdened by the challenges of accessing authenticated data, can seamlessly integrate transaction history data into on-chain applications.
Smart contract infrastructure startup Axiom has successfully secured $20 million in its recent Series A funding round, led by Paradigm and Standard Crypto.
According to a blog post published on January 25, 2024, the new investment round saw participation from other notable venture capital companies, such as Robot Ventures and Ethereal Ventures, reflecting the growing confidence in Axioms innovative approach.
The crypto infrastructure company intends to use the substantial investment to expand its business offerings and fuel platform growth.The funds will support the recruitment of skilled developers and accelerate the development of the Zero-Knowledge (ZK) network.
Today, were excited to announce our latest milestone at Axiom: weve raised $20 million in funding led by Paradigm and Standard Crypto. This funding will help us grow our team and accelerate the development of our core ZK platform empowering smart contract developers to build data-rich, on-chain applications, the company said.
With the momentum gained from the Series A funding, Axiom is poised to further advance its mission of enabling developers to build data-rich, on-chain applications.
The protocol, launched in 2023, belongs to an emerging category of crypto projects leveraging zero-knowledge proofs (ZK proofs), a cryptographic method for verifying specific data without disclosing any transaction details. Currently, Ethereums smart contracts face limitations in accessing historical data, prompting the development of solutions like oracles.
Axiom said the recent introduction of its V2 mainnet opens the door for developers to compute over the entire history of Ethereum, fostering a more efficient and cost-effective ecosystem.
The companys core focus is empowering smart contract developers with enhanced access to authenticated on-chain data. Unlike traditional methods that often lead to significant time and cost investments in reading and writing data, Axiom introduces a pioneering approach using ZK cryptography.
The startup said in a social media post on X that their utilization of ZK cryptography, rather than conventional consensus mechanisms, enables on-chain applications to process a broader range of data at a lower cost.
With Axioms smart contract infrastructure, developers, burdened by the challenges of accessing authenticated data, can seamlessly integrate transaction history data into on-chain applications.
The companys methodology allows for the trustless incorporation of past transaction activity and permissionless composition with other smart contracts, providing modular flexibility without modifying existing deployed business logic.
Axioms vision aligns with the growing demand for storing, accessing, and operating over authenticated data. The adoption of cryptography and blockchain technology serves as the backbone to meet this escalating demand.
The protocols commitment to offering a solution that optimizes data usage without compromising trust-minimized guarantees resonates with the broader blockchain community.
The companys introduction of a novel approach to authenticated data access positions it as a key player in shaping the future landscape of smart contract development.
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Blockchain Infrastructure Protocol Axiom Secures $20M in Series A Funding - Coinspeaker
How to Create and Deploy Smart Contracts on Ethereum – Analytics Insight
Smart contracts, self-executing agreements with the terms of the contract written directly into code, have revolutionized the way transactions are conducted on blockchain platforms. Ethereum, a leading blockchain network, is at the forefront of this innovation, enabling developers to create and deploy smart contracts for a variety of applications.
Smart contracts are decentralized programs that automatically execute predefined actions when certain conditions are met. They run on blockchain networks, providing transparency, security, and trust in transactions. Ethereum, with its robust and versatile blockchain, has become a primary choice for deploying smart contracts.
Install Ethereum Wallet: Begin by installing an Ethereum wallet to store and manage your ether (ETH), the native cryptocurrency of the Ethereum network.
Set Up Development Tools: Choose a development environment for creating smart contracts. Popular choices include Remix (an online IDE), Truffle (a development framework), and VS Code with appropriate extensions.
Choose a Programming Language: Ethereum supports multiple programming languages for smart contract development. Solidity is the most commonly used language, and it resembles JavaScript.
Write Smart Contract Code: Use your chosen development tool to write the code for your smart contract. Define the contracts functions, variables, and logic. Solidity provides a wide range of features for creating complex and secure smart contracts.
Use Remix for Testing: Remix allows you to test your smart contract in a simulated environment before deploying it to the Ethereum mainnet. It helps identify and fix any potential issues.
Use Testnets: Ethereum has test networks like Ropsten and Rinkeby that simulate the Ethereum mainnet. Deploy your smart contract on these testnets to ensure it functions as expected without using real ether.
Compile with Development Tools: Once your smart contract code is written and tested, use your development environment to compile it into bytecode. This bytecode is the machine-readable version of your smart contract.
Choose Deployment Network: Decide whether you want to deploy your smart contract on the Ethereum mainnet or a testnet. Deploying on a testnet is advisable for initial testing and debugging.
Deploy Using Remix or Truffle: Most development tools provide a straightforward deployment process. If using Remix, connect your wallet, select the deployment network, and deploy. Truffle provides a more comprehensive development environment and allows for more advanced deployment configurations.
Get Contract Address: Once deployed, your smart contract is assigned a unique address on the Ethereum network. This address is crucial for interacting with the contract.
Use Web3.js or Ethers.js: Interact with your smart contract using JavaScript libraries like Web3.js or Ethers.js. These libraries enable you to send transactions, read contract data, and execute functions from your decentralized application (DApp).
Understand Gas Costs: Gas is the unit used to measure the computational work required to execute operations on the Ethereum network. Each operation in a smart contract consumes gas, and transactions require a certain amount of gas to be processed.
Set Gas Price: Specify the gas price when sending transactions. Higher gas prices result in faster transaction confirmation, but they also incur higher costs.
Monitor Contract Activity: Keep an eye on your smart contracts activity using blockchain explorers like Etherscan. Monitor transactions, view contract state changes, and ensure everything is functioning as intended.
Consider Upgradeability: In some cases, you might want to make changes or improvements to your smart contract after deployment. Consider building upgradeability into your contract design, allowing for future modifications without redeploying.
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How to Create and Deploy Smart Contracts on Ethereum - Analytics Insight
What Is The Ethereum’s Cancun-Deneb (Dencun) Upgrade – CCN.com
Key Takeaways
The Ethereum Cancun-Deneb (Dencun) Upgrade is a step forward in blockchain innovation centered around enhancing the Ethereum infrastructure. The Ethereum Foundation implements the upgrade to take advantage of a more refined design to improve the networks performance and continue to compete for its status as a leading platform for decentralized applications (DApps) and smart contracts.
The Dencun upgrade is a mix of two upgrades, Cancun and Deneb, each targeting specific layers of the Ethereum network. The Cancun upgrade is set to revamp Ethereums execution on layer 1, while the Deneb upgrade focuses on the consensus layer 2.
The outlined approach will address some of the unresolved issues concerning network security and scalability that followed the Shanghai upgrade.
The upgrade encompasses several Ethereum Improvement Proposals (EIPs), each playing an essential role in advancing the network:
The listed EIPs are part of a broader vision to make Ethereum more efficient and user-friendly by decreasing gas fees and increasing throughput.
As Ethereum continues to hold second place in market capitalization in the crypto space the, the Ethereum blockchain continues to develop itself transformatively over time, with change influencing its various stakeholders on the network in the following ways:
The Dencun upgrade promises developers new improvements to the Ethereum network. Innovations like Proto-Danksharding will give developers advanced capabilities when handling transactions, allowing for integrating more complex functions within smart contracts and DeFi applications.
The Dencun upgrade promises users significant benefits in reducing transaction fees, making Ethereum more economical for everyday transactions.
Improved throughput, scalability and efficiency will enable the network to support more users and offer more diverse use cases for its users, ultimately broadening Ethereums use case.
With enhanced security measures, users benefit from confidence in the safety and integrity of network transactions and assets held on the Ethereum network.
The Ethereum ecosystem will gain substantially from the Dencun upgrade because it said the upgrade will address issues with current scalability and high gas fees. Moreover, this upgrade is not just a solution to everyday challenges. Still, it lays the foundation for future developments, ensuring Ethereums continued evolution to meet the changing demands of the blockchain space.
The enhancements aim to attract new stakeholders, including investors, developers, and users, thereby expanding Ethereums community and increasing its competitive edge versus other smart contract blockchains in the crypto space.
The Dencun upgrade is anticipated to bring many benefits to the Ethereum ecosystem. By addressing scalability and security issues, Cancun-Deneb opens up Ethereum to new use cases and a broader user base.
The upgrade is expected to provide a seamless experience for both developers and users, and will hold improvements in cross-chain communication, data storage, and transaction efficiency. Furthermore, changes like those proposed in EIP-5656 lay the groundwork for future technical advancements in the network.
As with any major network upgrade, Dencun carries potential risks. The upgrades possibly raise compatibility issues with existing smart contracts and challenges to integrate new data storage enhancements.
To mitigate against these risks, extensive testing and careful planning are super important. Ethereum developers are working diligently to ensure a smooth transition, keeping all stakeholders well-informed about the upcoming changes and associated risks.
The Ethereum Cancun-Deneb (Dencun) Upgrade significantly advances Ethereums blockchain technology, enhancing network security, scalability, and performance. The upgrade introduced key improvements through various Ethereum EIPs, targeting everything from transaction throughput to data storage efficiency and cross-chain interactions.
While the upgrade brings potential risks, particularly in smart contract compatibility, data integration, careful planning, and extensive testing, the Dencun Upgrade is a step in maintaining Ethereums leading position in the blockchain and smart contract space.
What is the primary goal of the Ethereum Cancun-Deneb (Dencun) Upgrade?
The primary goal of the Dencun Upgrade is to enhance Ethereums network by improving security, scalability, and performance, combining the Cancun and Deneb upgrades to revamp both key network layers.
How will the Dencun Upgrade affect transaction fees and processing on Ethereum?
The Dencun Upgrade will reduce Ethereums transaction fees and improve processing speed by implementing EIPs like EIP-4844 for Proto-Danksharding, optimizing transaction throughput, data storage, and block space.
What key Ethereum Improvement Proposals (EIPs) are included in the Dencun Upgrade?
Key EIPs in the Dencun Upgrade include EIP-2322 for PoS mechanism enhancement, EIP-4844 for Proto-Danksharding, EIP-1153 for reduced data storage costs, and EIP-6780 for improved security.
What potential risks are associated with the Dencun Upgrade, and how is Ethereum addressing them?
Potential risks of the Dencun Upgrade involve smart contract compatibility and data storage integration challenges, which are addressed through extensive testing, careful planning, and keeping stakeholders informed.
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Chainlink Automation Is Now Live on Base – GlobeNewswire
SAN FRANCISCO, Jan. 23, 2024 (GLOBE NEWSWIRE) -- Today, the industry standard Chainlink Automation has gone live on Basea fast and highly scalable layer-2 blockchain incubated by Coinbase and secured by Ethereum. This integration provides Base developers with verifiable, decentralized, and gas-efficient smart contract automation capabilities.
Chainlink Automation is the most secure, reliable, and cost-effective automation service for Web3 developers. Base developers can now offload compute-heavy tasks to the Chainlink Network, maintaining the verifiability standards of blockchains, but with up to a ~90% reduction in gas costs.
Were pleased to bring Chainlink Automations high-performance compute to the Base network, stated Johann Eid, Chief Business Officer at Chainlink Labs. Combining Chainlinks offchain computation capabilities with Bases highly scalable layer-2 network enables developers to create next-generation Web3 experiences that support the adoption of the verifiable web.
Developers can also increase the amount of computation that they include in their smart contracts, opening up more advanced use cases. Automation offers a broad set of triggers, unlocking new ways to connect multiple dApps. For example, Automation enables smart contracts to react to log events emitted onchain, acting as a powerful messaging bus thats similar to the pub/sub messaging bus used to connect microservices in Web2.
Were excited to see the next-gen apps that developers can build on Base using the advanced offchain compute capabilities enabled by Chainlink Automation, said Jesse Pollak, Creator of Base. Being able to offload compute-heavy tasks to the Chainlink Network expands the use cases that Base developers can realize.
With a suite of Chainlink services now available on Base, including CCIP, Data Feeds, and Automation, builders have highly advanced tools to develop a new wave of hyper-scalable applications.
If youd like to get started building right away, explore the official Chainlink Automation documentation.
About Chainlink
Chainlink is the industry-standard decentralized computing platform powering the verifiable web. Chainlink has enabled over $9 trillion in transaction value by providing financial institutions, startups, and developers worldwide with access to real-world data, offchain computation, and secure cross-chain interoperability across any blockchain. Chainlink powers verifiable applications and high-integrity markets for banking, DeFi, global trade, gaming, and other major sectors.
Learn more about Chainlink by visiting chain.link or reading the developer documentation at docs.chain.link.
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Research Review: GPTScan: Detecting Logic Vulnerabilities in Smart Contracts by Combining GPT with – DataDrivenInvestor
Discover how GPTScan combines GPT models with program analysis to revolutionize smart contract security. Learn how it detects logic vulnerabilities with over 90% precision, reducing financial risks in decentralized finance (DeFi). Explore its implications and potential impact on blockchain security.
The research paper GPTScan: Detecting Logic Vulnerabilities in Smart Contracts by Combining GPT with Program Analysis by Yuqiang Sun et al., published in December 2023, addresses a critical issue in the realm of decentralized finance (DeFi) the vulnerability of smart contracts. This paper is significant as it introduces GPTScan. This novel tool leverages Generative Pre-training Transformer (GPT) models with static analysis to identify logic vulnerabilities in smart contracts, an area where current tools falter.
The authors observe that current analysis tools primarily focus on vulnerabilities with fixed patterns, like re-entrancy or integer overflow, overlooking those related to business logic. The developers created GPTScan to address this, blending GPTs code understanding capabilities with static program analysis.
Key aspects of GPTScan include:
GPTScans integration of GPT and static analysis is commendable, significantly reducing false positives and increasing precision in detecting logic vulnerabilities. Breaking down vulnerabilities into scenarios and properties is innovative, enhancing the tools ability to understand and analyze complex smart contract code.
However, the reliance on GPT-3.5 poses challenges due to its inherent limitations, such as handling large datasets and the potential for generating ambiguous answers. Additionally, while GPTScan shows high precision in specific contexts, its performance may vary with more diverse and complex smart contracts.
GPTScans approach could revolutionize how smart contracts are audited and maintained, significantly reducing the risk of financial loss due to vulnerabilities. It can become a standard tool in smart contract development and auditing processes. Furthermore, the methodology could inspire similar approaches in other areas of software security, leading to more robust and secure systems.
GPTScan is a groundbreaking tool addressing a critical smart contract security gap. Its novel integration of GPT models with static program analysis significantly advances the detection of logic vulnerabilities. While it demonstrates impressive results, further exploration, and development are needed to fully realize its potential across various smart contract platforms and scenarios. Nevertheless, GPTScan represents a pivotal step towards more secure and reliable DeFi applications.
For more blockchain, cybersecurity, and cybercrime research, visit Blockchain Insights Hub.
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Ethereum: Unleashing the Power of Smart Contracts and Decentralized Applications – Medium
Photo by DrawKit Illustrations on Unsplash
Ethereum: Unleashing the Power of Smart Contracts and Decentralized Applications
Ethereum, often dubbed as the world computer, is a decentralized, open-source blockchain platform that goes beyond the capabilities of traditional cryptocurrencies. Conceived by Vitalik Buterin in late 2013 and developed in 2015, Ethereum introduces a revolutionary concept beyond mere digital currency, enabling the creation of decentralized applications (DApps) and smart contracts.
Smart Contracts: At the heart of Ethereum lies the concept of smart contracts. These are self-executing contracts with the terms of the agreement directly written into code. Smart contracts automate and enforce the execution of contractual agreements without the need for intermediaries, bringing transparency and efficiency to a myriad of industries, from finance to real estate.
Decentralized Applications (DApps): Ethereum serves as a robust platform for the development of decentralized applications, offering a decentralized and tamper-proof environment. DApps operate on the Ethereum blockchain, providing users with enhanced security, immutability, and censorship resistance. These applications span various sectors, including finance, gaming, supply chain, and more.
Ether (ETH): Ether, the native cryptocurrency of the Ethereum platform, fuels the network and serves as a unit of value within the ecosystem. Beyond being a digital currency, Ether is also used to compensate participants for computational efforts on the network, securing the blockchain through a process known as mining.
Blockchain Consensus Mechanism: Similar to Bitcoin, Ethereum initially utilized a proof-of-work (PoW) consensus mechanism to secure its blockchain. However, the network is transitioning to Ethereum 2.0, a major upgrade that introduces proof-of-stake (PoS). This shift aims to improve scalability, energy efficiency, and overall sustainability.
Decentralized Finance (DeFi): Ethereum has been a driving force behind the rise of decentralized finance (DeFi). Through smart contracts, Ethereum facilitates a wide array of financial services, including lending, borrowing, and trading, all without the need for traditional intermediaries like
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Ethereum: Unleashing the Power of Smart Contracts and Decentralized Applications - Medium
Alchemy reports deploying over 1 million smart accounts – crypto.news
In the fourth quarter of 2023, Alchemy saw an unexpected surge in ERC-4337 smart contracts, creating over 960,000 accounts.
This explosion of interest underscores the zeal of app developers to tackle user experience challenges, per Alchemys report.
Will Hennessy, Alchemys account abstraction lead, expressed his surprise, attributing the rapid adoption to the Ethereum Foundations deployment and developers eagerness to address user experience challenges.
The Ethereum Foundation just deployed ERC-4337 contracts in March 2023, so this early adoption is faster than expected, he said via his personal X account. It shows how hungry app developers are to solve [user experience] problems like gas sponsorship.
Account Abstraction was a HUGE narrative in 2023.
Over 960,000 new ERC-4337 accounts were created in Q4, representing 53% of the total 1.8 million deployments to date.
Let's look at how we did as an industry on other key metrics
Report by @0xKofi pic.twitter.com/blNoBnogV6
Different from traditional wallet accounts, smart accounts let users create user operations instead of just transactions. According to Hennessy, this innovation shows how hungry app developers are to solve [user experience] problems like gas sponsorship.
This feature improves efficiency, especially in trading and gaming. ERC-4337 introduces sponsored transactions, allowing entities to cover gas fees for users, which Hennessy highlights as a departure from current methodology, where fees are paid exclusively in the networks native currency.
This standard also improves security and convenience through multi-signature transactions and simplified account recovery, marking a significant step towards making web3 more user-friendly. Hennessy emphasizes that account abstractions role in facilitating the easy adoption of web3 apps will continue to attract a diverse user base.
Account abstraction makes it easy for anyone to start using a web3 app, he said. By lowering the barrier to entry with social login and gas sponsorship, apps are able to onboard more users, including those who might have lower intent.
User operations by bundlers saw a substantial 194% increase in Q4, driven largely by apps such as Grindery, FanTV, and Cyberconnect.
Hennessey adds that current retention is primarily determined by how useful the application is. Theyre working on new features to continually engage users.
The introduction of paymasters, allowing gas fees to be paid in ERC-20 tokens, has proven popular, covering an estimated $1.16 million in gas fees.
Hennessey emphasizes that flexibility around transaction fee payment remains a popular demand from users.
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Alchemy reports deploying over 1 million smart accounts - crypto.news
DeFi Protocol EigenLayer Reaches Restaking Capacity, Pushing TVL Past $1.4 Billion – Unchained – Unchained
EigenLayer increased its restaking capacity in the middle of December, and since then the number of liquid staking tokens (LSTs) and ETH deposited into the protocols smart contracts has increased more than fivefold from about $250 million.
Part of EigenLayer's appeal has been its large airdrops.
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Posted January 3, 2024 at 5:44 pm EST.
Decentralized finance (DeFi) protocol EigenLayer reached its liquid restaking capacity Tuesday night, pushing its total value locked past $1.4 billion.
EigenLayer increased its restaking capacity in the middle of December, and since then the number of liquid staking tokens (LSTs) and ETH deposited into the protocols smart contracts has increased more than fivefold from about $250 million.
Liquid staking tokens represent the combined value of a users initial deposit into Ethereums staking deposit contract plus accrued interest, and can be used across many DeFi platforms as collateral.
The restaking platform went live in June and allows crypto users who are currently staking ETH to restake their LSTs, extending Ethereums cryptoeconomic security to additional applications on the network to earn additional rewards, according to its documents.
Part of why crypto users have been depositing their LSTs into the new protocol stems from the possibility of EigenLayer airdropping tokens to its depositors. EigenLayer has enacted a points system to measure a users contribution to the EigenLayer ecosystem.
Chainlink community ambassador @ChainLinkGod said on January 1 on X, formerly Twitter, that EigenLayer will be cryptos largest airdrop to date, particularly when you count the airdrops from Eigen-powered application to restakers.
Data from blockchain analytics firm DefiLlama shows liquid staking is the largest category within the DeFi ecosystem, with a combined total value locked of around $31 billion.
All LST deposits are now on pause, EigenLayer tweeted on Tuesday, but noted that More restaking opportunities are on the horizon as we near the Stage 2 Mainnet Launch for Operators & [EigenDA].
UPDATE Jan. 3, 10:13 pm: Included ETH as part of the cryptoassets deposited into EigenLayers smart contracts.
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