LRT² rewards distribution
EIGEN Programmatic Incentives
EigenLayer has announced a programmatic incentives program designed for AVS "reward-boosts" in which EIGEN will be automatically distributed to stakers and operators of each AVS proportionate to the amount of rewards distributed by each AVS.
For the first year, at least 4% of total EIGEN supply will be distributed through this program.
3% to ETH and LST stakers and operators (ETH and LST's are weighted equally)
1% to EIGEN stakers and operators
EIGEN Supply = 1,691,670,555 * 3% = 50,750,116 EIGEN
From this 3% allocation, 90% goes to stakers and 10% goes to operators
90% to stakers = 45,675,105 EIGEN
10% to operators = 5,075,011 EIGEN
As of November 27th, a total of ~4.2M ETH is staked with EigenLayer, which results in an EIGEN/ETH ratio of of ~10.87. According to the weekly distribution, the restakers earn ~0.209 EIGEN/ETH.
Note that, by EigenLayer's rewards distribution pipeline, the rewards can be delayed up to 16 days, in the worst case. Refer to here
ether.fi's Rewards Claimed and Distributed
Below is a breakdown of the EIGEN rewards claimed in each distribution period by the ether.fi protocol. 100% of the rewards shown in the below table are allocated to stakers
2024-08-15 ~ 2024-10-05
2,478,088
1,480,684
532,110
0.205
2024-10-06 ~ 2024-10-12
358,681
1,531,605
474,149
0.179
2024-10-13 ~ 2024-10-19
358,383
1,518,610
498,538
0.178
2024-10-20 ~ 2024-10-26
349,136
1,471,568
618,016
0.167
2024-10-27 ~ 2024-11-02
351,442
1,555,346
559,512
0.166
2024-11-03 ~ 2024-11-09
357,174
1,623,479
499,709
0.168
2024-11-10 ~ 2024-11-16
367,510
1,691,153
446,127
0.172
2024-11-17 ~ 2024-11-23
374,000
1,731,185
387,981
0.176
2024-11-24 ~ 2024-11-30
400,932
1,860,800
333,926
0.180
2024-12-01 ~ 2024-12-07
406,422
2,063,326
159,360
0.183
2024-12-08 ~ 2024-12-14
404,016
2,062,106
118,891
0.185
2024-12-15 ~ 2024-12-21
403,885
2,043,889
135,786
0.185
2024-12-22~ 2024-12-28
418,446
2,049,497
165,849
0.188
2024-12-29 ~ 2025-01-04
427,519
2,074,747
123,840
0.194
Any discrepancies relating to the difference between the EIGEN distribution per ETH from EigenLayer and actual earnings for ether.fi stakers relates to the following:
ether.fi liquidity pool reserves some ETH un-deployed to service withdrawals
*ether.fi Restaked ETH that has not yet been allocated to an EigenLayer AVS - See "ETH Not-Restaked" column above. This amount will be reduced over the subsequent periods.
fluctuations in ETH TVL restaked in EigenLayer
Note that while the rewards ratios are accurate in the aggregate over time, for any user, the distribution amount on a specific week may vary by +/-5% based on their specific positions. We are working to reduce this variance.
ether.fi's ETHFI top-up
In addition to the distributions via EigenLayer's programmatic incentives, we perform additionals via ETHFI top-up. This top-up program does not have the pre-determined schedules. The purposes are to boost LRT2 usage, correct the errors in prior distributions and subsidize the ether.fi's restaking rewards during the period when the ether.fi has low capital efficiency.
Note that the top-up distribution may happen retro-actively; ether.fi tracks the stakers balance history in the past and rewards accordingly.
2024-10-18
2024-08-15 ~ 2024-10-05
500,000
0.248
2024-10-28
2024-10-06 ~ 2024-10-12
41,000
0.020
2024-10-31
2024-10-13 ~ 2024-10-19
27,533
0.013
2024-11-28
2024-11-10 ~ 2024-11-16
530,000
0.247
2024-12-05
2024-11-17 ~ 2024-11-23
400,000
0.188
2024-12-12
2024-11-24 ~ 2024-12-01
350,000
0.157
2024-12-19
2024-12-02 ~ 2024-12-08
300,000
0.141
LRT^2 Claiming Merkle Contract
The LRT^2 claims contract reflects the full allocation of rewards to each staker on a weekly cadence. If there are any allocation discrepancies detected in LRT^2 rewards distributed, future allocations are corrected by reducing or increasing a staker's LRT^2 rewards over time.
As a part of operations for gas optimization, ether.fi will claim and fund the Merkle Claims Contract as needed. All the EIGEN is available for claiming through LRT^2. ether.fi continues to monitor the remaining LRT^2 in the contract to ensure sufficient rewards are available for claiming at all times.
Merkle Claims Contract: https://etherscan.io/address/0x6Db24Ee656843E3fE03eb8762a54D86186bA6B64
Understanding Rewards Distribution via LRT2 & Unwrapping
Note that the table shows the total amount of EIGEN that ether.fi has earned from EigenLayer. However, because ether.fi distributes these earnings via LRT2, stakers will receive LRT2 tokens (instead of EIGEN) of the same dollar value. If the stakers choose to unwrap their LRT2 tokens, they will receive a combination of underlying assets—such as EIGEN and ETHFI—also equal in dollar value. That is, the redemption will result in less amount of EIGEN per eETH than the distributed amount shown in the table, but give additional ETHFI.
Here is a realistic example depicting the distribution & redemption:
(1) Initially,
Suppose that the LRT2 vault has 10 shares in total and it holds 10 EIGEN and 10 ETHFI.
Assume each EIGEN = $1, each ETHFI = $1, so the vault is worth $20 in total.
Therefore, 1 LRT2 share = $20 ÷ 10 = $2.
Unwrapping 1 share gives 1 EIGEN + 1 ETHFI, worth $2 total.
(2) New Deposit with earned EIGEN,
Suppose ether.fi deposits 10 EIGEN (worth $10) into the vault.
Since each share is worth $2, the vault mints 5 new shares for this $10 deposit.
The vault now has a total of 15 shares (10 old + 5 new) and holds 20 EIGEN + 10 ETHFI = $30.
The share price remains $30 ÷ 15 = $2.
(3) Unwrapping After Deposit
If you unwrap 1 LRT2 share at this stage, you receive a proportional amount of the assets:
EIGEN: 20 EIGEN ÷ 15 shares = ~1.33 EIGEN
ETHFI: 10 ETHFI ÷ 15 shares = ~0.67 ETHFI
Combined, those tokens are still worth $2 in total.
Fees
As per the EigenLayer documentation, operators will earn a flat 10% commission on rewards, with the remaining 90% going to stakers. The table above reflects the full allocation that is distributed to stakers. ether.fi does not take any fee cut from stakers.
Additional Resources
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