Kraken, a popular crypto exchange, has recently partnered with EigenLayer to offer its users the ability to restake Ethereum directly from the platform. This move aims to simplify the restaking process and make it more accessible to a wider range of users. Currently, only verified Kraken Pro users at the Intermediate level or above can access this service, with US residents excluded due to regulatory reasons.
Mark Greenberg, Kraken’s Global Head of Asset Growth & Management, highlighted the significance of restaking in the crypto space and the potential it holds for everyday users. Restaking allows validators and stakers to secure decentralized applications on the Ethereum network using assets they have already staked. EigenLayer, a protocol built on Ethereum, plays a crucial role in this process by enabling users to repurpose staked ETH to secure additional networks or protocols, offering opportunities for higher yields.
Through this integration, Kraken users can now restake any ETH they have already staked on the platform and earn additional rewards. Kraken’s subsidiary, Staked, serves as the validator for ETH restaked through the exchange and is a prominent operator on EigenLayer, catering to institutional clients. This collaboration comes at a time when EigenLayer has experienced a decline in total value locked (TVL), dropping to $11.45 billion from an all-time high of over $20 billion in June.
Market observers attribute this decline in EigenLayer’s TVL to the conclusion of its airdrop campaigns that sparked significant community interest. However, they believe that increased accessibility through centralized exchanges like Kraken could potentially reverse this trend by driving more participation and boosting EigenLayer’s TVL in the future. By offering its users a convenient and accessible way to restake Ethereum, Kraken is not only enhancing its platform’s offerings but also contributing to the growth of the DeFi ecosystem.
