EigenLayer Launches Voting Contest To Onboard New LSTs

EigenLayer taps new LST providers to bolster growth

By: Samuel Haig Loading...

EigenLayer Launches Voting Contest To Onboard New LSTs

EigenLayer, the pioneering Ethereum restaking protocol, launched a contest for liquid staking token issuers hoping to secure an integration on the platform.

On. Nov. 1, EigenLayer tweeted that whitelisted users can vote until Nov. 8 to select which liquid staking tokens (LSTs) they would like to see supported by the protocol. Eligibility was determined by a snapshot of LST wallet balances taken on Oct. 20.

“All active Ethereum LST tokens backed by more than 15,000 ETH are eligible for submission and inclusion in the voting process, and all their token holders have the right to cast votes,” EigenLayer said in a blog post. “Any LST that receives votes exceeding 15,000 ETH will be integrated into EigenLayer in the upcoming months.”

Voters can select from one of nine candidates, spanning wBETH from Binance, sfrxETH from Frax, SETH2 and rETH2 from Stakewise, swETH from Swell, AnkrETH from Ankr, LsETH from liquid collective, mevETH from MEV Protocol, EthX from Stader, and OETH from Origin.

EigenLayer will integrate the winning LSTs in the order that they surpass the required vote threshold. The team encouraged voters to consider a candidate’s staking capacity, total value locked, operational stability, and reputation within the web3 community.

The announcement added that EigenLayer will run similar onboarding contests again in the future.

LST Diversity

The news comes as concerns surrounding the centralization of Ethereum’s staking layer are at an all-time high.

Lido, the leading LST provider, currently controls 31.4% of staked Ether, down from 32.4% in early February. Lido has copped flak for refusing to self-limit its dominance, despite Ethereum researchers warning that a single entity controlling more than one-third of staked Ether would undermine the decentralization of Ethereum.

EigenLayer currently supports uncapped native staking, in addition to limited pools supporting three LSTs — Lido’s stETH token, RocketPool’s rETH, and Coinbase’s cbETH. However, its LST pools are currently paused, with EigenLayer indicating the protocol seeks to ensure its growth by promoting a plurality of liquid staking tokens.

“We envision a future where EigenLayer thrives in an uncapped and permissionless state,” EigenLayer said. “But to reach this future, we need community participation and the right assets to back our goal.”