Overview of LRT arbitrage situation, which fund has the highest utilization rate?

On February 22nd, a16z invested $100 million in EigenLayer. According to DefiLlama data, as of the time of writing, EigenLayer's TVL has reached $8.787 billion. The re-staking track has undoubtedly become a force that cannot be ignored in the new cycle. BlockBeats has taken stock of the top seven LRT projects and the funding utilization rate of mETH on Mantle based on TVL, to understand where it is more cost-effective to stake your ETH.

LRT track project TVL ranking; source: DeFillama

ether.fi（eETH）

ether.fi's TVL is 1.621 billion US dollars, and the APR for staking eETH, a liquidity-rewarding token, is 3.81%. After users collateralize ETH to obtain wETH, the platform automatically stakes it on EigenLayer and rewards both EigenLayer and ether.fi points.

eETH can be used in DeFi protocols such as Pendle, Penpie, and Equilibria. In addition, it can also be wrapped into weETH and used in dApps such as Curve, Balancer, Maverick, Gravita, and Term Finance.

It is worth mentioning that ether.fi has also integrated Morpho Blue and Prisma, allowing users to collateralize weETH and borrow assets such as WETH for loop.

Mantle（mETH）

mETH is a liquidity re-staking token on Mantle, with an APY of 7.2%. As of the time of writing, the staking of mETH on EigenLayer has exceeded 192,000 ETH, ranking third.

On Mantle, users can pledge mETH purchased on Merchant Moe to the lending market INIT Capital on the Mantle chain for loop lending. This not only earns INIT points, but also earns EigenLayer points for mETH.

Related reading: "INIT Capital: Leveraging Eigen's Airdrop, Mantle Lending Market with Luxurious Financing Background".

Kelp（rsETH）、Renzo（ezETH）、Swell（rswETH）

The TVL of the three LRT projects, Kelp, Renzo, and Swell, are 580 million USD, 567 million USD, and 95.97 million USD, respectively. The liquidity provider tokens, rsETH, ezETH, and rswETH, can all be staked in the zkRollup project Zircuit, which offers staking APR, re-staking APR, Eigenlayer points, Renzo points, and Zircuit points.

Other than that, there are no other "nested doll" approaches for these three projects, and the efficiency of capital utilization is not as good as that of eETH and mETH mentioned earlier.

Puffer（puffETH）、Bedrock（uniETH）

Puffer Finance, thanks to its early conversion of EigenLayer users, currently has a TVL of approximately $1.139 billion, ranking among the top projects alongside LRT. However, like the entire-chain LRT project Bedrock, both only have basic staking rewards. Puffer's liquidity is re-staked in the form of puffETH tokens, with an APY of 3.3%; Bedrock's liquidity is re-staked in the form of uniETH tokens, with an APY of 3.51%.

However, Puffer Finance launched Chapter 3 during the drafting period. At this stage, depositing 1 stETH will earn you 1000 Puffer points. The points will increase every hour, and holding one pufETH in your wallet will increase your Puffer points by 30 per hour. This stage also adds liquidity pools for pufETH/wstETH on Curve, where every crvPufETH (pufETH/wstETH) in your wallet can earn you 60 Puffer points per hour. Therefore, the efficiency of fund utilization has increased.

It is worth noting that the distribution of Puffer tokens is given to the original staking address rather than the address holding pufETH, so transferring pufETH will not affect the distribution of tokens.

EigenPie

EigenPie currently has a TVL of 303 million yuan. Since staking ETH in it does not yield APY, one can only earn EigenPie and EigenLayer points. Therefore, in terms of returns, it has the lowest cost-effectiveness.

Overall, we believe that ether.fi has the highest capital utilization efficiency, while mETH, although having low transaction fees, is still not as good as ether.fi when combined with airdrop expectations.

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