Original title: How Liquid Are Liquid Restaking Tokens?

Original author: Kairos Research

Original translation: Ladyfinger, Blockbeats

 

Editor’s Note:

EigenLabs’ newly launched data availability AVS, EigenDA, represents the beginning of the re-staking era on mainnet. This article aims to provide a comprehensive analysis of Liquidity Re-staking Tokens (LRTs), exploring their integration in the DeFi ecosystem and comparison with traditional staking tokens. We pay special attention to the current state of market liquidity and potential opportunities and challenges in the future lending market. Through this report, readers can get a clear understanding of this emerging market and understand how LRTs affect staking and re-staking strategies on a global scale.

According to Techub News, according to Ember's monitoring, Curve founder Michael Egorov has currently pledged a total of 371 million CRV (US$156 million) on 6 lending platforms through 5 addresses to borrow US$92.54 million in stablecoins.

 

Because of the drop in CRV prices, Michael's lending positions on various platforms have now entered the danger zone again. The lending health rate of multiple positions has dropped to around 1.1 (i.e., if the CRV price continues to drop by 10% and there is no margin call or repayment, liquidation will begin).

 

In August last year, Michael sold 159.4 million CRV to 33 investors/institutions in an over-the-counter (OTC) transaction in exchange for $63.76 million in stablecoins to repay the loan in order to avoid liquidation caused by the decline in CRV prices. The selling price was 0.4.

During the Web3 Conference in Hong Kong last week, I had discussions with many project founders and industry friends, and summarized ten ideas as follows. Recently, I listened to Mr. Zhu Xiaohu of Jinshajiang Venture Capital’s views on the differences in investment opportunities in the AI ​​field between China and the United States, and I resonated with them. I recommend everyone to listen to Zhang Xiaojun’s podcast in Xiaoyuzhou.

 

1. We continue to focus on the Chinese team, which is where we have certain accumulation and knowledge, and where we can exert some strength after investment.

 

We have observed that the systematic assistance received by Web3 Chinese startup teams is far less than that of Web2 and Web1 startup teams. This is also the main goal and core interest of why we strive to build the RPC Cat Friends Club, a Web3 Chinese Entrepreneur Club.

According to Techub News, cryptocurrency exchange Coinbase has filed documents with a U.S. court, asking the court to review a specific "control issue" raised by the U.S. Securities and Exchange Commission (SEC) in a lawsuit against the exchange. Coinbase Chief Legal Officer Paul Grewal explained on social media that the core of this "control issue" is whether investment contracts require "something contractual." Coinbase believes that investment contracts require post-sale contractual obligations, while the SEC believes that they do not.

 

Previously, U.S. District Judge Katherine Failla denied Coinbase’s motion to dismiss the SEC’s accusation that it operated as an unregistered exchange, broker-dealer and clearing agency. But if the court grants Coinbase’s appeal, it could significantly impact the case, which has been ongoing since June 2023.​

According to Techub News, Austin Federa, the strategic director of the Solana Foundation, said in an article on the X platform that Solana will introduce three new mechanisms to increase the priority of transactions, thereby alleviating network congestion. These three mechanisms are: Priority Fees: used when computing resources/transaction packaging becomes a bottleneck, which is essentially similar to the practice of other blockchain networks to increase gas fees, and has global properties. Local Fee Markets: used for bottlenecks caused by multiple people competing for the same state resources at the same time, and has local properties. Stake Weighted QoS: a screening mechanism for witch attacks and spam transactions, which can be used in combination with the first two mechanisms or alone, and has global properties.