Liquid Staking

Ether.fi is preparing to remove its final structural connection to EigenLayer this quarter, leaving less than 1% of assets restaked. The shift underscores how declining yields, new slashing risk and wrapper vulnerabilities have forced liquid restaking protocols to rethink their business models.

KelpDAO has filed a civil lawsuit against LayerZero and co-founder Bryan Pellegrino, alleging undisclosed weaknesses in the cross-chain protocol enabled a major rsETH exploit. Pellegrino called the claim meritless and said he will defend himself and LayerZero in a British Columbia court.

Ethereum researchers have introduced EIP-8361, a draft proposal that would burn a rising share of newly issued validator rewards as more ETH is staked. The plan has triggered debate across developers, validators and DeFi participants because it could reshape staking economics and may not make the Hegotá upgrade timeline.