ETHFI exits EigenLayer restaking this quarter as the sector's yield economics collapse, with weekly fees dropping from $27.35M in liquid staking to just $100k in restaking amid slashing activation and bridge exploits.
DeFi & Yields ·
ETHFI is exiting its remaining EigenLayer restaking positions this quarter, determining that additional yields do not justify the associated risks. As of August, less than 1% of the protocol's assets remained in restaking, while its weETH liquid staking token has already discontinued restaking functionality. Those wanting restaking exposure must now use a separate offering on Symbiotic.
The economics underlying the restaking sector have deteriorated sharply. On September 8, the sector held $10.02 billion in total value locked but produced roughly $100,000 in weekly fees, compared to $27.35 million weekly from liquid staking deployed across $51.87 billion in value. Excluding ETHFI, six other major protocols—Renzo, Kelp, Swell, Puffer Finance, and Bedrock—collectively earned $953,350 in gross profit during Q2 2026, a steep decline from $2.18 million three quarters prior.
Multiple headwinds have compressed profitability. Incentive programs offering additional points have ended, EigenLayer activated slashing penalties, and the Kelp bridge exploit exposed cross-chain security vulnerabilities. Whether restaking can recover meaningful fee generation or whether further exits will follow remains unclear.