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
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.
| Period | EIGEN | Annualized | Restaked | Buffer* | EIGEN/eETH |
|---|---|---|---|---|---|
15/08/24 - 06/10/24 | 2,478,088 | 17,394,272 | 1,479,238 | 528,578 | ~8.66 |
06/10/24 - 13/10/24 | 358,681 | 18,702,662 | 1,532,396 | 485,664 | ~9.27 |
13/10/24 - 20/10/24 | 358,383 | 18,687,132 | 1,519,643 | 548,795 | ~9.03 |
20/10/24 - 27/10/24 | 349,136 | 18,204,966 | 1,471,067 | 652,599 | ~8.57 |
27/10/24 - 03/11/24 | 351,442 | 18,325,206 | 1,504,815 | 608,872 | ~8.67 |
03/11/24 - 10/11/24 | 357,173 | 18,624,048 | 1,617,869 | 492,762 | ~8.82 |
10/11/24 - 17/11/24 | 352,371 | 18,373,636 | 1,728,307 | 391,540 | ~8.67 |
17/11/24 - 24/11/24 | TBD | TBD | 1,742,004 | 420,768 | TBD |
Any discrepancies relating to the difference between the EIGEN distribution per ETH and actual received from ether.fi stakers relates to the following:
The ether.fi liquidity pool to service withdrawals
*ether.fi Restaked ETH that has not yet been allocated to an EigenLayer AVS - See "buffer" column above. This amount will be reduced over the subsequent periods.
Fluctuations in ETH staked with EigenLayer
Ether.fi will be increasing the utilization and efficiency of the above metrics in the following weeks to increase the EIGEN/ETH rate.
In addition to the above EIGEN distributions, there was an additional 110k ETHFI distributed across the initial 3 distributions.
LRT^2 Claiming 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
Fees
The EigenLayer Rewards protocol enables AVSs to distribute rewards to stakers and operators. 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.
Additional Resources
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