
honoreetchells31
@honoreetchells31
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EigenLayer's airdrop is tied to its restaking mechanism, where users restake staked ETH or Liquid Staking Tokens (LSTs) to secure additional protocols, earning "Restaked Points" that may determine EIGEN token allocations. This incentivizes participation, boosting ecosystem growth. Restaking enhances ETH capital efficiency but reduces liquidity, as staked ETH is locked in EigenLayer contracts, subject to a 7-day withdrawal delay. Liquid restaking protocols (e.g., eETH, rsETH) mitigate this by issuing tradable tokens, maintaining DeFi usability. However, increased slashing risks and lockups could still limit ETH's immediate liquidity, balancing rewards against accessibility. 0 reply
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