Phil.xyz

Alright, @eigencloud accelerated the release of its $Eigen token more quickly than anticipated. This rush may have been well-prepared for by Eigenlayer, but its not a great thing for the restaking related projects The integration of LRT assets into DeFi lacks solidity and widespread adoption is hard to achieve in a bear of DeFi. There's limited time to build this adoption, and projects like @EtherFi, @renzoai, and @puffer_finance could soon face a cash-out ( lead to a LRT de-pegging). The negatives aren't limited to LRT-related. Eigenlayer's next move involves aggressively advancing the launch of AVS. Despite no reward incentives being offered initially, I foresee the rollout of EL-AVS resembling the development of the Polkadot Parachain. Everyone might initially celebrate the wealth creation(stake to earn), but its impact will likely diminish quickly after the first 3-4 launches. This will inevitably drag Eigenlayer through difficulties, similar to the struggles experienced by Polkadot and its follower, Cosmos, in sustaining growth. The concept of shared security isn't new in Web3 but is novel in Ethereum, which is why ppl are bullish. However, a higher TVL creates only a fleeting impression of success before it fades when it becomes commonplace.