Kraken introduced the Ethereum Restaking feature using the EigenLayer protocol
TLDR
Kraken has begun restaking Ethereum to non-US customers via EigenLayer Staked will allow users to earn additional rewards with their previously staked ETH Kraken subsidiary Staked serves as a validator for the restaked ETH Total value of liquid restocking tokens has grown over 3000% this year. It recently opened for business at a price of $6.7 billion.
Leading cryptocurrency exchange Kraken has announced the relaunch of Ethereum via the EigenLayer protocol for its non-US customers.
This new feature allows users to earn additional rewards on pre-allocated Ethereum (ETH) by participating in the security of decentralized applications (dApps) built on the EigenLayer network.
Repo is a process that allows users to extend the service of owned assets by providing security to multiple protocols without leaving the original blockchain. This innovative approach allows investors to increase their overall productivity while contributing to the well-being of the wider ecosystem.
Restocking work on the Kraken began at a time when the sector was booming. According to data from Defilama, the total value locked in liquid reset tokens has seen an impressive increase of more than 3000% this year, reaching almost $11 billion. This rapid expansion reflects the growing interest and re-establishment among cryptocurrency investors.
Kraken's restore feature aims to simplify the process for its users, making it accessible to many customers. Mark Greenberg, Kraken's head of global asset development, said the merger “significantly lowers” the barrier to entry for investors, as most crypto users are familiar with a centralized exchange.
To implement this new offering, Kraken has partnered with the underlying Scad, which serves as proof of ETH held by the exchange again. Staked is a popular EigenLayer operator that typically caters to institutional customers. This collaboration will allow Kraken to leverage Staked's expertise in the redevelopment space.
Users who participate in redemptions through Kraken have the option to hold their rewards on the exchange or trade them in fiat currency or another cryptocurrency. This flexibility gives investors a variety of options to manage their income.
It's important to note that while the reset feature is available in many parts of Europe, it's not available to customers in the United States and other regions where “geographic restrictions apply,” according to Kraken.
The launch of Ethereum rebalancing on Kraken coincides with recent changes in the EigenLayer ecosystem. The protocol's native token, EIGEN, was recently opened for trading, nearly five months after its initial airdrop to early adopters.
The Egan Foundation has announced that the token will launch on September 30, 2024, with major exchanges such as Binance listing it for trading in pairs with other cryptocurrencies including Bitcoin and Tether.
Kraken's reworking implementation involves using stored ETH to secure decentralized platforms known as Actively Validated Services (AVSs).
By providing security to these dApps, users become eligible for additional rewards beyond the standard ETH stake rewards. These rewards are normally paid out in AVS tokens, which represent the dApps that help secure the recaptured ETH.
Rebooking comes with some additional considerations. EigenLayer applies a minimum 7-day transit time in addition to the holding period required to withdraw assets from the Ethereum network. This means that getting the re-allocated ETH may take longer than a normal stake on Ethereum.
In order to participate in EigenLayer retargeting via Kraken, users need a verified Kraken Pro account with an intermediate level or higher, ETH in their account or holdings, and reside outside of restricted geographies, such as the United States.
