ETHFI to Fully Exit EigenLayer Restaking as Yields Dry Up and Sector Profitability Declines ETHFI will sever its remaining structural ties with EigenLayer this quarter, citing a lack of meaningful additional yield relative to the risks of restaking. Less than 1% of its assets remained restaked as of August, while weETH has already removed restaking and now functions as a standard liquid staking token. Users seeking restaking exposure must opt into a separate product built on Symbiotic. DefiLlama data showed the restaking sector held $10.02 billion in TVL on September 8 but generated only about $100,000 in weekly fees, compared with $27.35 million generated by liquid staking on $51.87 billion in TVL. Excluding ETHFI, Renzo, Kelp, Swell, Puffer Finance and Bedrock generated a combined $953,350 in gross profit in Q2 2026, down from $2.18 million three quarters earlier. The sector has faced weaker economics as points incentives ended, EigenLayer activated slashing, and the Kelp bridge exploit highlighted additional cross-chain security risks.

flood and kyle soska went from heavily exposed to ethereum to zero ETH exposure within 48 hours, according to kyle. the trigger was a twitter space. he says someone involved with eigenlayer described struggling to find yield for $11 billion of deposits. kyle called flood: "Look, we have to talk right now. Like, this cannot wait." he remembers their exit around $3,800. flood had been looking at miami property when the call came.

This week's largest unlocks ↓ • Hyperliquid ($HYPE): $797M to be unlocked (4.5% of supply) • Sui ($SUI): $9.7M to be unlocked (0.3% of supply) • EigenCloud (prev. EigenLayer) ($EIGEN): $6.9M to be unlocked (4.1% of supply) • Ethena ($ENA): $6.0M to be unlocked (0.4% of supply) • GoPlus Security ($GPS): $1.6M to be unlocked (2.8% of supply) • ZetaChain ($ZETA): $1.4M to be unlocked (2.9% of supply) • IOTA ($IOTA): $492K to be unlocked (0.3% of supply) • Wormhole ($W): $473K to be unlocked (0.8% of supply) Top-3 account for 99% of the week's total. Data: Tokenomist, Aug 31–Sep 7

senate banking committee votes on the CLARITY Act tomorrow 10:30am ET. the staking carveout defines staking as "administrative or ministerial activity," not a security. LDO, RPL, and EigenLayer go from legally ambiguous to explicitly protected if this passes committee. $31b in liquid staked ETH has been trading under regulatory overhang since the SEC started targeting staking in 2023. bill has bipartisan support, yield issue resolved, white house targeting july 4 signing. 100+ amendments filed but the staking language survived every draft. the entire liquid staking sector is priced for uncertainty that could evaporate in 24 hours

Everyone being giga bullish on a project before its launch usually means that it won't be a great long trade. I am thinking about stuff like Monad, EigenLayer, Berachain The huge upside has been captured in the private market. Then it launches at high valuation, and the only thing you can do is provide exit liquidity for all the people that got in on the private market. Think about the highest ROI tokens we've had, ever. They have never been giga hyped before launch, right ? Then of course, this all depends on launch valuations. Hyped projects that launch in shitty conditions could become good longs ( $ZRO, $ZK ?). But a general rule for me is that overhyped projects won't give interesting upside.

🟥 Things I'm looking at today 🟥 Powered by @yeet Subscribe: Crypto higher, yields continue surge, OpenAI pauses model release Crypto * BTC: 83,982 (+1%) | BTC.D: 58.7% * ETH: 2,715 (+2%) | BNB: 764 (0%) | SOL: 119 (+1%) * Fear & Greed: 74 | 24h Liq: $407M * BTC ETFs: +$31M | ETH ETFs: +$17M * Top Gainers: CARDS, ZBCN, SYRUP, GRASS, CRV * ETH leads crypto majors higher, ZEC falls * BTC faces little selling pressure up to $85,200 * 87% of Binance altcoins in bullish momentum * NEAR Intents blocks $50M Bitget hacked funds * BitMine buys 17,362 ETH, now holds 6M ETH * Attacker tested controls before heist: Bitget * SOL surpasses Robinhood in tokenized equity * Pumpfun leads all chains on daily revenue * Robinhood crypto volume up 24% in September * Binance first CEX to list reflection memecoins * Citi, Coinbase offer corp stablecoin payments * ETHFI to fully exit EigenLayer restaking * Edelman backs a 10-40% Bitcoin allocation * Evernorth XRP treasury one vote from Nasdaq * Chainlink launches CCIP 2.0 for institutions * ETH Fast Confirmation Rule ships in CCIP 2.0 * Goldman takes $100B Treasury fund onchain * Circle's USDC enters AI-powered bank rails * CFTC approves Coinbase Clearing for USDC derivs * BlockchainCom eyes $500M IPO after $14B peak * Tether helps freeze ~$550M in Iran-linked USDT * 84% of Iran-linked sanctioned wallets used USDT * Crypto anonymity an 'illusion': China * Spain exempts self-custody crypto from disclosure Macro * NASDAQ: 26,820 (-1%) | Gold: 4,150 (+1%) * US 10yr yield hits 5.27%, 30yr highest since 2003 * Oil flat as Mid East supply concerns persist * Iran doubts deal before US midterms * Iran denies Uranium enrichment halt report * Axios’ potential Iran relief story untrue: Trump * Inflation 'eradicated' after Iran war ends: Trump * Multifamily delinquencies at multi-decade high * Trump limits student loans for low-earning degrees * Democrats’ odds to win House hit ATH 91% * Trump admin rescinds Biden-era Title IX * Senate passes sweeping college sports package * China signals stimulus to counter slowdown * Putin lifts Russian army strength to 2.44M+ * Yemen declares general mobilisation vs Houthis * Trump calls Canada 'one of the worst countries' * Airfares for holidays reach 10-year high AI & Tech * OpenAI scraps model release on safety failures * AI infra stocks sell-off on OpenAI’s pause * Anthropic files for IPO, flags existential risk * Anthropic IPO filing shows $42B 2025 net loss * Anthropic releases second model in a week * Claude Sonnet 5.5 beats Opus 5.5 at coding * Nvidia’s tool to contain rogue AI agents in millisecs * AMD to buy Fei-Fei Li's World Labs for $8.2B * Zuckerberg, Amodei to meet Trump today * Samsung invests $1B in KKR-backed AI firm Helix * Khanna intros bill to ban 'recursive' AI for now * Modal Labs nears $750M round at $15.75B * Meta faces billions in penalties after NM verdict * Walmart vows no AI-driven personalised pricing * Judge blocks Utah's VPN crackdown @YEET: Crypto's Casino Just passed $3.5B in lifetime volume! gm

Standard Chartered initiated ethereum:0x1f9840a85d5af5bf1d1762f925bdaddc4201f984 coverage today with a $100 target by 2030 (a 40x from current levels). This is the first token-specific price target to come out of a DeFi thesis they published in October 2025. In October they published "DeFi 101", a framework for how DeFi disrupts TradFi, built around five categories on one chain: → Lending, led by Aave and Compound → Liquid staking, dominated by Lido → Restaking, led by EigenLayer → DEXs, led by Uniswap → RWAs Concluding also that the vast majority of DeFi disruption this is likely to happen on Ethereum. Today they quantified the macro behind that framework: → Tokenised assets active in DeFi grow 37x by end-2030. → $2.7T locked in DeFi. →Tokenised RWAs reach $2T in market cap by 2028. →ETH reaches $ 40k by 2030. UNI gets the first target because DEXs are the most immediate TradFi integration point as tokenised assets move onchain. But the October report was explicit that lending and RWAs are "the key areas where DeFi protocols can disrupt TradFi", with democratised borrowing against tokenised assets as the central use case. If Standard Chartered follows its own framework, the remaining four categories each have a dominant protocol already previously mentioned. ethereum:0x7fc66500c84a76ad7e9c93437bfc5ac33e2ddae9 in lending, ethereum:0x5a98fcbea516cf06857215779fd812ca3bef1b32 in liquid staking, ethereum:0xec53bf9167f50cdeb3ae105f56099aaab9061f83 in restaking.

"so you staked your ETH on the Ethereum blockchain to earn yield?" "yes, Dave" "except you didn't want your capital to be locked up so you actually staked it with a liquid staking protocol called Lido?" "that's correct, Dave" "and Lido gave you a liquid staking receipt token called stETH in return?" "yes, Dave" "and then you didn't think that was enough, so you juiced the yield even further by depositing your stETH receipt tokens into a restaking protocol called Eigenlayer?" "you are correct, Dave" "and now you didn't want to lock up your capital, so you actually restaked with a liquid restaking protocol called KelpDAO who provided you with a liquid restaking receipt token called rsETH?" "you got it, Dave" "and then that was surely not enough juice, so you then deposited your rsETH tokens into a lending protocol called AAVE so that you could open a leveraged looping position that borrows ETH against the rsETH collateral and restakes the ETH into rsETH which is then deposited as collateral, except it turns out rsETH used a cross-chain bridge called LayerZero whose security is held together by a 1/1 toothpick, which was obviously hacked by north koreans causing rsETH to become undercollateralized and now these looping positions are stuck and unprofitable, and everyone is pointing fingers at each other, and also DeFi is a very serious industry" "you are 100% correct, dave" jfc.