Eigenlayer liquidity re -edition lose more than $ 1 billion in TVL before April 17 reduction update. The upgrade will apply responsibility, strengthening the reliability of AVS according to Ethereum validators for security. Will their own prices recover after pouring 85% in two weeks?
On Eigenlayer, you can reuse your ETH marked on the Mainnet Ethereum and win an additional performance by securing other services, called actively validated services (AVSS), such as Ether.fi, Kelp, Renzo, Eigenpie, and more. According to Defillama dataThe total value of liquidity (TLR) locked (TVL) on Ethereum exceeds $ 5 billion. This number can increase in the coming months as stakers of the ETH diversify Best cryptos to buy in 2025.
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The liquidity of TVL liquidity loses more than a billion dollars in 2 weeks
However, the recent explosion of Eigenlayer TVL can find opposite winds.
On April 17, Eigenlayer will implement a key update to bring greater responsibility to its ecosystem of several billion dollars and probably strengthen it.
After years of testing, the replenishment platform will activate the reduction functionality, stabilizing its ecosystem and improved the reliability of its services, in particular for AVS which require higher and seamless availability operations.
Intotheblock data show that the liquidity of TVL liquidity is decreasing rapidly, after losing more than $ 2 billion in the two weeks preceding the April 17 update.
The penalty queue has increased for many TLR protocols in last week.
The reason? Eigenlayer Slashing takes effect this week, which has potentially prompted assistants to leave the risks to leave
Track risk alerts
pic.twitter.com/ltuvztppq
– intotheblock (@intotheblock) April 14, 2025
At the time of the press, the data Defillama indicates that the sector commands a TVL of $ 6.8 billion, down compared to the $ 8 billion recorded on April 1.
Over the past two weeks, the main TLR protocols have experienced a sharp increase in requests for non-sitting. Reflecting this trend, TVL of Vare, Renzo, Inception, and Mello LRT, for example, fell two figures in the last month. Ether.fi, the largest TLR, saw its TVL decrease by 8% in a month to around $ 4.2 billion.
According to Intotheblock analysts, the decision to count before updating the reduction is a cushion strategy against the loss of potential capital.
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Why the task on Eigenlay is good
Once Eigenlayer activates the strike, he will apply responsibility to his safety network based on Ethereum. Consequently, operators who underperform or behave badly will be penalized. Although it may seem severe from the point of view of stakers, the objective is to improve the reliability and integrity of the rest platform.
Slashing will be executed via AVS smart contracts. For example, all the penalties billed on downtime, double signature or non-validation will be imposed automatically.
The good news is that the sanctions will vary depending on the severity of the violation. According to the damage caused to the ecosystem, they can go from partial burns of amounts marked in the redistribution of the affected participation.
1 / Introduction of Slashing – TESTNET LAUNANCH
Slashing Testnet is officially live.
This upgrade of the proposed protocol (ELIP-002) presents Slashing, a critical tool for AVSS to apply cryptoeconomic commitments. pic.twitter.com/u9wzinoeeg
– Eigenlayer (@eigenlayer) December 20, 2024
However, to avoid systemic reduction shocks, Eigenlayer will implement a single stake system. Instead of pooling all the challenges in a risk pool, operators will allocate a specific amount to individual AVSS. In this way, any event will lead to contagion shortly, which makes the platform more robust thanks to diversification.
Slashing strikes Mainnet April 17
Here are 3 things that each operator must know:
– Eigenlayer (@eigenlayer) April 8, 2025
ATTN. Operators! 
You cannot be reduced unless you are explicitly going in the sets of operators created by AVSS.In addition, there is an option to participate in an AVS that applies penalties. Each AVS must clearly define conditions of reduction in its intelligent contract for transparency and risk reduction before the funds are engaged.
Will the own prices restore after 85%dive?
As the LRT destroys, Eigen remains under pressure, dragging part of the Best parts of meme Solana to buy in 2025. After drawing up more than $ 5.5 in December 2024, the token plunged, losing more than 85% in four months.
(Eigenusdt)
Depending on the receipt of the reduction update, Eigen can find relief and bounce higher or come across the new hollows of 2025 in a training continuation of the bear trend.
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Eigenlayer TVL drops $ 1 billion before reducing the update, Eigen decreases by 85%
- Eigenlayer TVL shrinks before updating the reduction
- Slashing will make the ecosystem more reliable and stimulate responsibility
- Penalties will be billed for failures, but gravity varies according to the AVS conditions
- Eigen dropped by 85% in four months. Will Eigenusdt find relief?
Post-Gourmandes Post-Gourmande liquidity protocols lose more than a billion dollars in TVL before the key update appeared first on 99Bitcoins.
