TechFlow reports that Ethereum restaking protocol EigenLayer has announced an increase in the cap for liquid staking tokens (LSTs) to expand users' restaking opportunities. The proposed changes to restaking limits require approval from the multi-signature governance system. As of June 30, the Operations multisig transaction to raise the cap has entered a 10-day time lock queue, ensuring compliance with governance procedures and security measures. After the 10-day time lock expires, the Operations Multisig, responsible for overseeing day-to-day protocol operations, must trigger the action within the time lock contract, which will initiate and execute the parameter update through the Executor Multisig.
EigenLayer expects to raise the LST cap during the week of July 10. At that point, the cap for each LST—rETH, stETH, and cbETH—will be increased to 15,000 tokens, with no individual deposit limits. Restaking of LSTs will be paused once the total deposits across all LSTs reach 30,000 tokens.
With the increased LST cap, EigenLayer said it will begin exploring the next steps on its roadmap. The focus remains on enhancing the restaking experience while maintaining security and decentralization. Specific plans include launching the Operator testnet in Q3, the Active Validation Service (AVS) testnet in Q4, and the AVS mainnet is expected to go live in Q1 2024.
