DeFi
EigenLayer withdrawals accelerate after Airdrop backlash
Nearly 14,000 wallets have triggered withdrawals from the Ethereum Replenishment Protocol since April 29.
DeFi traders are leaving EigenLayer in droves since the high-profile Ethereum replenishment protocol released its airdrop allowances two days ago.
Since April 29, nearly 14,000 wallets have withdrawn from the protocol, representing approximately 13% of its withdrawals. user base.
EigenLayer is the third largest protocol in DeFi, with $14.5 billion in total value locked (TVL), according to DeFiLlama. It allows users to reinvest their Ether or Liquid Staking (LST) tokens to earn additional yield by securing third-party applications called Actively Validated Services (AVS).
Despite the large number of wallets, pending withdrawals amount to less than 12,000 ETH ($35 million), according to a report from Dune. dashboard. This represents just 0.25% of EigenLayer’s TVL and indicates that small depositors are leaving the protocol.
The project is faced violent reaction from the DeFi community after geoblocking many countries, including the United States, and aggressively blocking VPN users from its EIGEN airdrop despite accepting deposits from these “prohibited jurisdictions” during its growth phase.
Airdrop recipients are also unhappy that the EIGEN token will not be transferable at launch, meaning holders will not be able to trade their tokens. Many community members have also criticized the linear distribution of EIGEN, which favors large depositors.