ClayStack enters Ethereum restaking, offering reward points ahead of token launch in 1:1 ratio

Crypto-liquid staking platform ClayStack has entered the Ethereum recovery space via EigenLayer, offering users reward points ahead of the token launch at a 1:1 ratio.

ClayStack is turning its Ethereum liquid staking token, called csETH, into a liquid restaking token, the project said Monday. ClayStack uses the groundbreaking Ethereum resttaking protocol EigenLayer to offer the new service.

The platform currently accepts native ETH for instant re-inclusion on EigenLayer, with liquid staking tokens such as Lido staked ether (stETH) and Rocket Pool ether (rETH) to follow in “a few days,” ClayStack founder and CEO Mohak Agarwal told The Block.

“We are currently accepting sETH and rETH, but they have been undeployed and redeployed, while we will deposit them directly onto EigenLayer after a few days,” Agarwal said.

Ethereum is regaining momentum

Ethereum’s recovery has accelerated since the launch of EigenLayer last June. The total value (TVL) of EigenLayer’s smart contracts is currently approximately $1.7 billion. Last week, Renzo Protocol also entered the Ethereum recovery space via EigenLayer, when it announced a $3.2 million seed funding round. Renzo is currently only in beta and has already reached a TVL of over $116 million, according to its website.

Retaking goes further than conventional strikes and liquid strikes. Traditional staking involves locking tokens to generate rewards, while liquid staking offers liquid tokens representing locked assets that can be used across platforms for additional rewards. Retaking, on the other hand, allows the use of staked ether and liquid staking tokens across multiple platforms to further increase revenue.

ClayStack’s TVL is approximately $2.25 million. It first launched liquid staking for Polygon’s MATIC token in 2022. It then started offering liquid staking in Ethereum last September. But with today’s launch, it will shift its focus to taking on Ethereum again.

“Due to declining yields and the limited DeFi ecosystem on Polygon outside of major companies like Compound and Aave (which delisted the majority of less traded or volatile assets), it became very difficult to build more utility on Polygon liquid staking,” said Agarwal.

Token launch plans

ClayStack offers reward points to users who use the Ethereum recovery service at a 1:1 ratio, meaning each clay point can be exchanged for one clay token in the future.

“There is currently no other points system that offers a 1:1 redemption. You can own 1 million points in other programs and you could end up with 100 tokens,” Agarwal claimed.

Twenty clay points will be given per ETH per week, Agarwal noted, adding that the rate will change every Monday and then remain largely the same for the week. There are no minimum or maximum points for any user, he added. However, there is a total limit each week on the points that all users can combine, which will also be renewed at the beginning of the week and will be visible on the platform, he said.

To be honest, ClayStack’s clay points are not entirely new. A version of these points has been live since the project started the Ethereum liquid staking service last September, Agarwal said, adding that the revamped points system goes live today and will continue to run until the end of the first quarter of this year.

In addition to clay points, ClayStack will also offer its users EigenLayer reused points.

“When ClayStack redeploys the ETH on EigenLayer, the ClayStack smart contract ultimately accumulates those points,” Agarwal said. “We don’t know what they can be redeemed for; we will simply pass those points on to csETH holders given the high level of excitement among users about EigenLayer points.”

EigenLayer Restaked points cannot be exchanged for CLAY tokens, he noted.

ClayStack will announce its token launch plans next month, Agarwal said, but declined to specify the launch date.