Taking KelpDAO as an example, how can the dormant LRT project start its second rise curve?

Author: NingNing

Since June, the TVL of the LRT track has experienced negative growth, dropping from the ATH of 3,884,300 ETH to the current 3,550,800 ETH. Indicators such as the number of deposit addresses, daily deposit amount, and social media discussion heat in the LRT track have also experienced synchronous decline.

The reason for this phenomenon is as follows:

It is well known that the ‘One Fish, Three Eats’ LRT income consists of ETH Staking income, Eigenlayer point Airdrop income, LRT project point Airdrop income, and three parts.

With the full pricing of Ether fi、Renzo’s Token on CEX, and the pricing of Eigenlayer in the pre-trading market, the market’s overly optimistic expectations for the return on LRT have gradually changed, gradually recognizing the coin-based fixed-income properties of LRT stake.

The pricing range for LRT WrapETH assets on the Pendle YT market has dropped to 6% to 7%. Currently, Renzo’s rsETH has the highest YT, but it is only 7.1%. This level of coin-based yield is already difficult to attract ETH holders and Airdrop farmers to stake and re-stake ETH at the risk of capital loss.

In the face of this situation, how can LRT break through and start the second round of rise? There are currently three directions:

• Continue to accumulate points FI, such as Ether fi and Renzo launched the S3 points activity, but due to the measurable low APY, the market feedback is not positive, and the TVL data has not shown a significant rise.
• Use the new narrative leverage to expand market expectations for returns. Puffer recently launched an infrastructure project related to the New Narrative Based Rollup, which has increased market expectations for potential Airdrop returns and achieved a reverse rise in TVL during the sluggish period of the track.
• Actively participate in AVS Depth, and additional “Yi Yu” (AVS project Airdrop reward). KelpDAO and Renzo are the most active. This strategy is focused on the long term, betting on the issuance wave of assets in the super bull market in the next two years. Currently, there are 16 ecosystems of AVS in Eigenlayer, distributed in areas such as ZK coprocessors, AI+DePin, chain abstraction, Web3 games, and social media.

In addition, KelpDAO is also working with emerging projects to collaborate on joint points Farming to increase revenue, and to provide more long chain support and better Liquidity for its re-stake asset rsETH.

Overall, LRT is in a pre-bull silence period. It is normal for there to be some data decline during this phase, and we should take a long-term view and wait patiently for the AVS new paradigm to be market-validated.