Feb 16 2024
Liquid Collective continues to grow! As integrations expand and more users come onboard, one thing never changes: Liquid Collective’s commitment to fostering a secure, informed, and connected community.
That’s why we’re excited to invite anyone attending ETHDenver this year to join security leaders Certora and Gauntlet alongside Liquid Collective for a delicious breakfast at Stowaway, connecting with others in the DeFi security community. If you’ll be in Denver, register here.
Read on for the latest news and updates from Liquid Collective, including two security updates, insights into Ethereum staking, a few refreshers, upcoming events, and more.
Liquid Collective's Latest
30d TVL +84% following EigenLayer’s open window for LsETH support
Liquid Collective has reached 65,983 ETH staked through the protocol, representing $185,491,692 USD in total value locked (TVL) at the time of writing. As of February 16, the protocol’s 30-day TVL is up 84% according to DeFiLlama data. This spike in participation followed EigenLayer’s open period for LsETH holders to participate in restaking on their platform, which saw over 9,800 LsETH in deposits over the course of the week.
It’s exciting to see the protocol’s traction grow as Liquid Collective continues to provide users with the best of enterprise-grade security, distribution, compliance-focused design, composability, and slashing coverage. To learn more about liquid staking with Liquid Collective, catch up on our site.
Refresher: The LsETH User Agreement
By obtaining LsETH, users agree to the terms of the LsETH User Agreement, which remains in effect for as long as the user holds LsETH. The LsETH User Agreement covers LsETH's specifications, participants' legal and beneficial ownership of staked ETH, Liquid Collective's Protocol Service Fee, risks of participation, slashing and slashing coverage, disclaimers, and more.
It also represents the true power of programmable money as a technological software innovation: a tool allowing users to opt-in to direct participation in staking, using programmatic developments to simplify their participation. Refresh your understanding of The LsETH User Agreement in our post.
What is Ethereum staking? Liquid Collective goes back to the basics
Over a quarter of all ETH in circulation is now currently staked—an all-time high for staking participation on the network. No matter how much you know about crypto, it can be helpful to go all the way back to the basics: what does it mean to participate in staking on Ethereum?
We provide a brief overview of how ETH staking works, the potential rewards, the potential risks, and where to go to learn more, all in Liquid Collective’s latest explainer.
LsETH Ecosystem Monthly Roundup
- Zircuit, an EVM-compatible zero-knowledge rollup, launched support for LsETH trading. View their site.
- EigenPie, a subDAO offering Isolated Liquid Restaking Services, launched support for LsETH liquid restaking. View their site.
- Inception, a liquid restaking protocol, launched support for LsETH liquid restaking. View their site.
- Layer3 launched two quests for Liquid Collective participation. View their site.
Security Updates
Incident update: Protocol paused out of an abundance of caution; unpaused after investigation determined no ETH at risk.
- During an investigation of unexpected validator exits (related to unexpected exit daemon behavior) on January 30, 2024, the Liquid Collective protocol was paused out of an abundance of caution.
- While assessing the cause of the incident, the protection of user funds was prioritized over protocol liveness in a conservative approach.
- Following an investigation, it was determined there was no security vulnerability, slashing risk, or user ETH at risk of loss. The protocol's infrastructure and Node Operator infrastructure was not compromised. The protocol was then unpaused.
- As of February 9, 2024, all Liquid Collective Node Operators successfully deployed v0.17.0 of the exit daemon software, including two patches to remediate the cause of this incident.
- Read the incident update here for more information.
Notice: Scam Telegram channel impersonating Liquid Collective identified
- A security researcher identified a Telegram group impersonating the Liquid Collective brand. The group has been reported to Telegram.
- The group appears to be using a bot to try to convince users to submit their private keys to impersonating links.
- All official Liquid Collective channels are linked to from liquidcollective.io, in the site footer and on the community page. If you do not find the link to a social media profile on liquidcollective.io, do not consider it an official brand channel.
- Liquid Collective’s official Telegram channel is @liquidcollective (https://t.me/liquidcollective). You are invited to join this channel to view a feed of the latest Liquid Collective news, resources, and updates.
- Please keep in mind that Liquid Collective will never request your personal information and/or private key information. There is no LsETH airdrop. We encourage you to always verify you are interacting with the official Liquid Collective channels, and the official LsETH token.
Liquid Collective aims to meet high standards of excellence for operations and service by acting with accountability, urgency, and integrity. Find the latest audits and resources in our diligence hub.
Events
Certora x Liquid Collective x Gauntlet: Security Breakfast at ETHDenver: Join Liquid Collective at ETHDenver for a delicious breakfast and a chance to meet security-focused community members, including Certora, a smart contract formal verification and audit service provider, and Gauntlet, a DeFi-native economic research firm. Register to join the breakfast here.
Upcoming Conferences: To connect with the teams supporting Liquid Collective at an upcoming conference, contact us.
- ETHDenver: Feb 23 - March 3, Denver Colorado
- Blockworks Digital Asset Summit: March 18 - 20, London United Kingdom
- Token2049: April 18 - 19, Dubai UAE
- Consensus 2024: May 29 - June 1, Austin Texas
News from the Collective & Ecosystem Updates
- The rate of ETH staking has reached an all-time high of 25.41% of ETH supply staked, and net ETH staking inflows have reached their highest levels since last June, according to Hildobby data. View the Dune dash here.
- Ethereum’s Dencun upgrade went live on the Holesky testnet on Feb 7, the last testnet prior to its mainnet launch (expected to take place on March 13). Learn more about the EIPs included in Dencun in our post here.
- EigenLayer launched support for three new LSTs: Liquid Collective’s Liquid Staked ETH (LsETH), Mantle’s mETH, and Frax’s sfrxETH, during a one-week open-deposit window on the protocol. Learn more about how EigenLayer restaking works in our post here.
- According to Blockworks reporting, CoinShares is now passing along staking rewards to investors in its Europe-listed Ethereum ETP. Read the article here.
- Rated Labs open-sourced their mapping of Ethereum’s solo stakers, presenting their methodology and findings that ~6.5% of staked ETH is staked by solo stakers. View the repo here.
- Electric Capital’s 2023 Developer Report was published, with highlights including that developers who have been in crypto for 2+ years are at an all-time high, 30% of developers support more than one chain, and South Asia, Latin America, Eastern Europe, Western Africa, and Southern Europe collectively grew developer share by +20% since 2018. Read the report here.
- Bitcoin Suisse’s post exploring market sentiment in crypto and traditional markets finds that current market drivers are closer to the ‘extreme greed’ end of the spectrum than the ‘extreme fear’ end. View the post here.
- Figment’s Q4 2024 Ethereum Validator Performance Report highlights a participation rate of 99.9%, 0.3% higher than an average validator, and an average SRR Rate of 4.2%. Read the report here.
- Total Deposited ETH: 71,797.46 ETH + 97.43%
- Total Value Locked: $185,491,692 + 100.35%
- LsETH Conversion Rate: 1 LsETH = 1.03996 ETH + 0.26%
- Total Reported Validator Count: 2,415 validators + 110.54%
All data is accurate as of February 16, 2024. View real-time onchain data here on Dune. Percentage changes are from the January 12, 2024 edition of By The Numbers.