• About Us
  • Careers
  • Contact
No Result
View All Result
Friday, October 10, 2025
DeFi Planet
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Market Analysis
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverse
    • Glossary
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Market Analysis
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverse
    • Glossary
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
No Result
View All Result
DeFi Planet
No Result
View All Result
Home News

EigenLayer May Face Yield Crisis as Growth Outpaces Security Needs – Expert

22 April 2024
in News
Reading Time: 3 mins read
108 4
EigenLayer May Face Yield Crisis as Growth Outpaces Security Needs - Expert

source: Medium.com

EigenLayer, a leading restaking protocol on Ethereum, is potentially facing a yield crisis due to its rapid growth, according to industry observers.

The experts claimed that the protocol’s current Total Value Locked (TVL) expansion may be outpacing its Actively Validated Services (AVS) needs, potentially leading to a significant reduction in yields.

As the second-largest staking protocol on Ethereum after Lido, EigenLayer has seen its Total Value Locked (TVL) surge by over 16% in the last month alone, reaching a staggering $14.15 billion, according to data from DefiLlama.

RELATED: EigenLayer Secures $100 Million in VC Funding

EigenLayer’s removal of limits on all liquid staking tokens (LSTs) on April 16, following its mainnet launch on April 10, has heightened these concerns. This move allows for the automatic delegation of staked Liquid Staking Tokens to node operators, who secure AVS on the EigenLayer platform and earn staking rewards in return. However, the current TVL far exceeds the amount of staked Ether required for AVS security.

Chudnov, a pseudonymous builder at 3Jane derivatives exchange, highlighted the issue in a social media post on April 22 and expressed concern that EigenLayer’s AVSs would require significantly less than 10% of its current $15 billion TVL for security. If not addressed, this imbalance could result in a significant and alarming decrease in yields, Chudnov warned.

 “The problem is that none of the AVSs will come close to needing $1.5 billion in security, let alone $15 billion. The whole point of Proof-of-Stake is that the value of the stake is higher than the potential profit earned from a validator behaving dishonestly,” Chudnov explained. 

To address the potential yield crisis, the developer suggested that EigenLayer could launch a series of tokens to temporarily increase security budget requirements. As a long-term solution, the developer also suggested that the platform integrate deeply into the DeFi ecosystem and enhance the utility of LSTs. 

 

If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.

“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”

Tags: Eigenlayer
Share65Tweet41Share11
Jewel Buddy

Jewel Buddy

Buddy Jewel is a finance writer specializing in cryptocurrency news. With a keen eye on the latest developments in the digital asset space, I provides insightful and timely updates on the ever-evolving world of crypto.

Related Posts

HashKey Group Reportedly Eyes $500M Hong Kong IPO Amid Expanding Global Footprint
Business

HashKey Group Reportedly Eyes $500M Hong Kong IPO Amid Expanding Global Footprint

10 October 2025
Momentum Finance Unveils $4.5M MMT Community Offering on Buidlpad, Prioritizing Real Users Over VCs
Crypto

Momentum Finance Unveils $4.5M MMT Community Offering on Buidlpad, Prioritizing Real Users Over VCs

10 October 2025
Telegram Founder Warns of “Dark, Dystopian World” as Governments Tighten Digital Control
Crypto

Telegram Founder Warns of “Dark, Dystopian World” as Governments Tighten Digital Control

10 October 2025
source: siliconcanals.com
Bitcoin

Bitcoin Outpaces Warren Buffett’s Beloved S&P 500 by 88% Since 2020

6 October 2025

Editors Picks

Web3 in 2025: Where We Are, What’s Next, and What the Data Says

Web3 in 2025: Where We Are, What’s Next, and What the Data Says

byOlayinka Sodiq
21 July 2025
0

What Is a Rebase Token and How Does It Work?

What Is a Rebase Token and How Does It Work?

byOlajumoke Oyaleke
28 June 2025
0

What Are DeFi Options Vaults, and How Do They Work?

What Are DeFi Options Vaults, and How Do They Work?

byOlajumoke Oyaleke
26 June 2025
0

What Are Teardrop Attacks in Crypto?

byOlajumoke Oyaleke
17 June 2025
0

What Are Fractional NFTs, and How Do They Work?

What Are Fractional NFTs, and How Do They Work?

byBlessing Lisafi
7 February 2024
0

Read More

Chain of Thoughts

The Aesthetics of Web3: Why Vibe Matters in Decentralized Communities

The Aesthetics of Web3: Why Vibe Matters in Decentralized Communities

byOlu Omoyele
27 September 2025
0

...

Zero-Knowledge Everything: Trust, Privacy, and Verification in the Digital Age

Zero-Knowledge Everything: Trust, Privacy, and Verification in the Digital Age

byOlu Omoyele
30 August 2025
0

...

What Happens When AI Gets a Wallet?

What Happens When AI Gets a Wallet?

byOlu Omoyele
31 July 2025
0

...

The Game-changing Triumvirate: Blockchain, Data Science, and Artificial Intelligence

The Game-changing Triumvirate: Blockchain, Data Science, and Artificial Intelligence

byOlu Omoyele
30 June 2025
0

...

Markets Update

Your Weekend Crypto Roundup | October 2025 (Week 1)

7 days ago

What $1 Billion in Liquidations Means for Market Stability

1 week ago

Why Crypto’s Cross-Chain Future Depends on Regulatory Readiness

1 week ago

MicroStrategy’s Debt-Fueled Bitcoin Buys: Smart Treasury Move or Dangerous Precedent?

1 week ago

XRP Reserves Spiked by 1.2B: What Does This Mean for Market Adoption?

1 week ago

Is Crypto Adoption Strongest Where Fiat Is Weakest?

1 week ago
Read More

Events

  • No events
  • Spotlight

    All about Ethereum
    All about Algorand
    All about Bitcoin
    All about Gora

    Press Releases

    Whale.io Launches Battlepass Season 3, Featuring $77,000 in Crypto Casino Rewards

    bychainwire
    10 October 2025
    0

    Dreamcash Celebrates 100,000 Waitlist Signups with Exclusive $50k Giveaway Series

    bychainwire
    9 October 2025
    0

    Bybit Secures UAE’s First Virtual Asset Platform Operator License from Securities and Commodities Authority

    bychainwire
    9 October 2025
    0

    BTCC Exchange Hits 10M Users and $1.15T Q3 Trading Volume, Accelerating Global Expansion

    bychainwire
    9 October 2025
    0

    FLOKI funds clean water wells in Africa through partnership with WWFA

    bychainwire
    8 October 2025
    0

    Read More

    ADVERTISING

    ABOUT

    TEAM

    CAREERS

    CONTACT

    TERMS & CONDITIONS

    PRIVACY POLICY

    © Copyright 2025 DeFi Planet

    Welcome Back!

    Login to your account below

    Forgotten Password?

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In

    Add New Playlist

    No Result
    View All Result
    • News
      • People
      • Business
      • Crime
      • Regulation
      • Crypto
      • CBDC
    • Market Analysis
      • Bitcoin
      • Ethereum
      • Stablecoins
      • Altcoins
      • Crypto ETFs
      • Memecoins
    • Policy
    • Articles
      • Press Releases
      • Opinion
      • Explainers
      • Guest Post
      • Sponsored
    • Directory
      • Companies
      • People
      • Products
      • Wallets
    • Multimedia
      • Videos
      • Podcasts
    • Learn
      • DeFi Basics
      • Tutorials
      • Reviews
      • Blockchain Fundamentals
    • Research
      • Case Studies
    • Explore
      • DeFi
      • Crypto Gaming
      • NFT
      • DAO
      • Metaverse
      • Glossary
    • Jobs
    • Markets Pro
      • DeFi Planet Pro
      • Spend Crypto
      • Swap Crypto
      • Coin Prices
      • Crypto Exchanges
      • Crypto Analyzer

    © Copyright 2024 DeFi Planet   |   Terms & Conditions   |   Privacy Policy

    -
    00:00
    00:00

    Queue

    Update Required Flash plugin
    -
    00:00
    00:00