Today in Markets

Vampire Restaking Rewards

LRT protocols are looking to juice airdrops, but should you restake natively anyway?
Jan 24, 20241 min read

Vampire airdrops. Liquid restaking protocol ether.fi just announced the launch of their deVamp program! How can you use it to maximize your ether.fi airdrop opportunity?

Many liquid staking protocols have previously implemented their own variation of a vampire attack with the intention of utilizing points and the promise of future rewards to steal depositors from LST heavyweights like Lido and Coinbase; ether.fi’s is no different!

The deVamp program allows both existing EigenLayer stakers and holders of stETH, cbETH, and wBETH to swap their swap into liquid eETH and receive points for doing so!

 Normal EigenLayer withdrawals are subject to a 7-day withdrawal period, but ether.fi will immediately liquify this stake for depositors when they convert to eETH and reward them with an additional 3k ether.fi points for doing so! Normal swappers who do not already have their assets deposited into EigenLayer earn 2k points for making the swap to eETH.

To penalize those who would like to game the system by depositing and immediately withdrawing, ether.fi will distribute a Quitter Badge worth -4k points per ETH withdrawn.

While using ether.fi will position you for both the ether.fi and EigenLayer airdrops, for airdrop hunters looking to strictly maximize their EigenLayer allocation, it is likely not advised to swap from LSTs that are already restaked with EigenLayer for eETH.

Not only is it possible that LRT holders could receive smaller airdrop allocations than their natively restaked counterparts, they’re also likely precluded from claiming the airdrops being distributed by numerous third-party protocols building on EigenLayer to native restakers! 

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

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