Looking Back at ETH CC: What Did the Founders of Top LST Protocols Say?
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Looking Back at ETH CC: What Did the Founders of Top LST Protocols Say?
Optimism remains high, with widespread belief that we could enter a bull market in the fourth quarter.
Navigating Web3 tides with focused insightsAuthor: DeFiMaximalist
Translation: TechFlow
Another thrilling ETH CC week has come to a close, and it's clear that Ethereum and the liquid staking landscape are rapidly evolving. In this post, I’ll unpack the major themes and deep insights from leading voices in LST (Liquid Staking Token) and LRT (Liquid Reward Token) protocols.
Let’s dive into my key takeaways from conversations with top LST/LRT protocols!
Industry Dynamics
1. Capital Flows: Despite large holders adopting a defensive stance, over $200 million in yield-seeking capital is still cycling through PT USDe tokens via lending protocols. Early movers stand to gain significant TVL (Total Value Locked).
2. Project Alignment: Lending projects that seize this opportunity first may capture substantial TVL, signaling a strategic shift toward securing long-term yield mechanisms.
Leadership Insights
1. Being a CEO at crypto conferences isn’t glamorous: Countless panels, often off-topic, but there seems to be an unwritten rule—“the more CEOs, the better the panel.”
2. VIP duties overwhelm casual networking, with schedules packed to the brim.
General Observations
1. Technology Saturation: Sentiment around an oversupply of L2 solutions and infrastructure projects is palpable. There’s a growing call for more consumer-centric applications that solve real-world usability issues, rather than launching yet another blockchain solution.
2. Event Dynamics: Side events have become the priority, offering more substantive interaction than main stage sessions. This shift may reflect a broader trend toward more intimate and impactful networking.
Outlook
Optimism remains high, with a widespread belief that we could see a bull run in Q4. However, the real challenge lies in refocusing on consumer-centric applications and ensuring crypto remains accessible to the masses.
Want to know the key insights from today’s top LST (Liquid Staking Token) and LRT (Liquid Reward Token) protocols?
I spent the entire week meeting with these legendary figures and capturing their key takeaways from this year’s ETH CC!
Let’s dive in!
@altcoinandy_ - Founder of @loopfixyz
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"For LRTs (Liquid Reward Tokens), AVS (Application-Specific Validators) yields remain a big question mark. Mike from @ether_fi put it perfectly: 'It will take years.' The market needs to focus on building applications that benefit from restaked security, not more infrastructure."
@CryptoKotler - Founder of @nektarnetwork
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"Ethereum remains dominant, and restaking has emerged as an unexpected ally, highlighting the gap we plan to fill at Nektar. DVT (Distributed Validator Technology) is critical in staking, and pioneers like Obol and SSV are setting the standards."
@jasnoodle - Core Contributor at @puffer_finance
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"These events are fragmented just like Ethereum. That’s not necessarily bad—it’s a sign of progress along Ethereum’s roadmap. We just need infrastructure to stitch things back together."
Alyssa - Business Development Manager at @Bedrock_DeFi
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"It was interesting seeing so many Bitcoin-related events at ETHCC this year. The growth of the liquid re/staking sector is creating a coherent ecosystem connecting Ethereum, Bitcoin, and L2s."
@PandeyMikhil - Co-founder of @pStakeFinance
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"Interest in the Bitcoin ecosystem, especially sustainable Bitcoin yield and BTCfi, appears to be at an all-time high. All Bitcoin events during ETHCC were consistently packed with core Bitcoin developers."
@sina___v - Ecosystem Lead at @babylon_chain
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"ETHcc was buzzing with excitement about Bitcoin. Ethereum’s merge unlocked massive value, giving rise to LSTs (Liquid Staking Tokens), restaking, LRTs (Liquid Reward Tokens), and new DeFi use cases. I’m excited that Babylon’s Bitcoin staking protocol could set Bitcoin on a similar development path. A vibrant BTC security market could have massive implications across the entire DeFi ecosystem."
@s0xn1ck - Founder of @mellowprotocol
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"ETHCC had amazing people and events. Restaking continues to gain attention, with LRTs (Liquid Reward Tokens) playing a crucial role in risk management, capital attraction and allocation, and integration into the DeFi ecosystem. We’re not competing between restaking protocols or LRTs—our shared goal is to replace native network launches with more efficient shared security and make consensus a commodity."
Nikita - Head of Business Development at @EverclearOrg
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"More and more LRT projects are looking to attract new users and liquidity from emerging L2s—there’s a whole new market for liquidity and volume, especially on Arbitrum and Base. Recent examples include Kelp, Swell, Bedrock, and many others actively expanding beyond Ethereum L1."
@LippmanEthan - Co-founder of @ebisu_finance
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"People are realizing that actual restaking yields right now are almost a joke, since many AVSs (Application-Specific Validators) aren’t generating revenue yet."
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"But people still want yield on their LRTs (Liquid Reward Tokens). LRT yield vaults and 'real yield' products like @3janexyz are showing strong product-market fit (PMF)."
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"Pendle is where point speculation happens—we're seeing outflows from EigenLayer’s LRT points at maturity, while Symbiotic and Karak are gaining traction."
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"When payouts go live, EigenLayer yields may consist of both EIGEN and AVS points."
@defiyaco - DeFi Lead at @LidoFinance
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"Whether existing restaking mechanisms can sustain momentum after the initial hype cools down remains to be seen, but one thing is certain: no staking, no restaking. I believe the best (liquid) restaking protocols can only be built on top of the best staking infrastructure. ETHCC reinforced this conviction."
@amadeobrands - Founder of @YieldNestFi
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"Ethereum dominates with the highest settlement assurance and an incredible community. DeFi Summer 2.0 is coming—many new restaking applications are being built, and YieldNest will capture these rich yields in a secure, positive-sum environment. Exciting times ahead!"
@rose3e3e3 - Chief Strategy Officer at @Stake_Stone
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"This year at ETHCC, we’ve shifted from scalability and high throughput to 'real-time blockchains,' but we still haven’t welcomed the next billion users. What comes after points and reward farms? Has TVL (Total Value Locked) lost its original purpose and meaning? As protocols lock up LP (liquidity provider) funds, the future of liquidity should be Total Value Trusted by users and LPs, not just Total Value Locked."
@cktlore - Co-founder of @yalaorg
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"The space has matured significantly. Investors and users are shifting focus from speculation to usability, community strength, and design of protocols and tokens. It’s a great time for projects with unique added value, active user bases, and strong product-market fit (PMF) to succeed."
@0xiamnico - Founder of @tenderize_me
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"The surge of new restaked tokens brings liquidity challenges. Current trading venues are saturated, and markets are becoming increasingly fragmented as new LSTs (Liquid Staking Tokens) and LRTs (Liquid Reward Tokens) emerge. There’s an urgent need for improved liquidity for staked assets."
@JacobPPhillips - Co-founder of @Lombard_Finance
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"ETHcc showed signs of restaking fatigue. Observing second- and third-order effects—net new capital in DeFi, composable yields, innovation in security markets—has reignited excitement. Bitcoin staking is the next frontier."
@chudnovglavniy - Founder of @3janexyz
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"The past few months have been a golden age for infrastructure—but now people are waking up to the fact that there are no scalable decentralized applications (dapps) actually using these AVSs (Application-Specific Validators). Looking forward to seeing how dapps integrate AVS around TEEs (Trusted Execution Environments), zKTLS (zero-knowledge TLS), and coprocessors."
@ccossio - Founder of @meta_pool
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"In traditional finance, restaking resembles reinvesting profits into diversified markets—taking earned returns and reinvesting them into other assets or markets to generate new yields or returns. The surge in LRTs (Liquid Reward Tokens) is the natural outcome of this behavior."
@rostique - Founder & CEO of @StroomNetwork
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"EthCC felt more like BitCC—it was exciting to see so many promising Bitcoin projects working together to build the Bitcoin DeFi ecosystem."
@0xASK - Co-founder of @OmniFDN
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"What the industry needs most from restaking is slashing."
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