Kraken Exchange has unlocked a new restaking feature on its decentralized finance protocol, EigenLayer. The feature will offer additional yield-generating opportunities to Kraken investors and clients outside the U.S.
Non-U.S. citizens now have a chance to restake their staked Ethereum on Kraken’s decentralized finance protocol EigenLayer. Restaking ETH will allow investors to utilize yield-bearing opportunities that bear additional revenue through blockchain technology.
Staked EigenLayer operator and Kraken subsidiary to validate the restaked ETH
EigenLayer operator and Kraken subsidiary Staked will be the validating entities for restaked ETH on the platform. The protocol will allow investors who join the bandwagon to hold their returns on the Kraken exchange or cash out for other digital assets or fiat currencies.
The exchange announced on October 15th it had completed EigenLayer’s integration, which will provide additional security to projects called Actively Validated Services (AVS) built on the restaking protocol. In exchange, the projects provide additional rewards in the native digital asset of the deployed application or Ethereum.
Mark Greenberg, Global Head of Asset Growth & Management at Kraken, commented on the technology upgrade, stating that restaking digital assets on-chain has ranked among the most notable developments this year. He also mentioned that the technology integration opens restaking to a wider audience, initially limited to the most technically advanced crypto investors.
“Restaking has been one of the most noteworthy developments of 2024, but so far only the most technically-advanced users have taken advantage of its opportunities. As the vast majority of crypto users already interface with CEXs, this integration makes restaking immediately more accessible to a broader range of clients.”
Mark Greenberg
Liquid staking has grown in popularity this year
The news comes at a time when liquid restaking has risen in popularity and experienced exponential growth. Data from DeFillama reveals that the total value locked through liquid restaking steadily increased at the beginning of 2024 and peaked at an all-time high of $15.317 billion on June 6th, 2024, from a low of $281.99 million recorded on January 1st.
On October 1st, the total value locked through liquid restaking peaked at $11.147 billion but later declined to $10.312 billion on October 5th. The value as of October 16th at the time of this publication is $11.106 billion, up from a low of $10.11 billion registered on October 10th.
The total value locked (TVL) on the EigenLayer protocol has declined in recent months, according to DeFiLlama. The protocol’s TVL has dipped from an all-time high of over $20 billion recorded in June to $11.45 billion. The protocol ranks third behind Lido.
Unfortunately, the feature is only available for clients and interested parties outside the United States. Investors within the U.S. or any other geographical location with restricted access to the exchange can not participate. Notably, the feature is available in most parts of Europe.
Restaking refers to using cryptocurrencies already staked on a blockchain to reinforce a protocol’s security or perform other functions across multiple protocols without unstaking them in exchange for more rewards.
