@georgiana1e

EigenLayer’s TVL soared to $10 billion in 2025, up 50%, as restaking ETH for 5% yields attracts 1 million users. However, systemic risks loom—70% of restaked ETH is concentrated in Lido, per CryptoSlate, creating a single point of failure. A 2024 $100 million Lido exploit highlights vulnerabilities; a similar attack could trigger a $7 billion liquidation cascade. High leverage—users borrow against restaked ETH at 80% LTV—amplifies risk, with 20% of positions liquidated during a 10% ETH dip. Ethereum’s 0.54% inflation also pressures yields. EigenLayer may mitigate risks by diversifying validators, potentially reducing concentration 15% by 2026, but a 5% ETH crash could still cause a $2 billion loss, shaking DeFi confidence if governance doesn’t strengthen.

0 reply

0 recast

0 reaction