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NewsEigenLayer Removes All Limits On LST Pools Until Feb. 9 and Proposed 33% Limit Per Entity for Incentives

EigenLayer Removes All Limits On LST Pools Until Feb. 9 and Proposed 33% Limit Per Entity for Incentives

Feb 06,2024,04:21

Reported by The Defiant, EigenLayer, the pioneering Ethereum staking protocol, has lifted all limits on its liquid staking token pools until 3 PM EST on Feb. 9.

Announced on Feb. 5, the move allows uncapped access to EigenLayer’s nine existing liquid staking token (LST) pools, and coincides with the introduction of support for three new LSTs from Frax, Mantle, and Liquid Collective.

“This unpause marks the temporary removal of TVL caps, paving the way for a future where pauses and caps are lifted permanently,” EigenLayer said. “This puts the EigenLayer protocol at a critical juncture, seeking to balance neutrality with decentralization over the long-term."

EigenLayer accompanied the announcement with a blog post exploring how it can best balance decentralization with neutrality moving forward, proposing several measures intended to navigate said considerations.

The proposed measures include removing all limits on from its pools, removing caps on payments from AVS to restakers, and limiting “protocol incentives and governance at 33% per entity.”

“The aim is to marry the principles of credible neutrality (minimal subjectivity) and decentralization,” EigenLayer said. “This balance is vital for trust and diversity within the ecosystem, reflecting lessons learned from Ethereum itself.”

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