Ether.fi Ditches Liquid Restaking Exposure Amid DeFi Security Risks
Ether.fi has made significant changes to its top-issued token, weETH. The project has removed all restaking exposure to weETH, effectively making it a pure liquid staking token (LST). This move is aimed at ensuring 'no bundled risk,' according to the team.
The decision comes as part of broader readjustments in the DeFi ecosystem due to security risks. Analysts see this as an 'end of an era' for liquid restaking activities. Ether.fi has moved its restaking activities to weETHs on Symbiotic and exited the Eigen Layer.
The move follows a significant contraction in the liquid restaking market, which has eased from $29B to $22B since last October. Despite this, Ether.fi still controls about half of the market with $11.4B in total locked value (TVL).
Ether.fi CEO Mike Silagadze echoed a similar sentiment, stating that restaking will 'come back in one form or another' but was 'just a bit too early.'