Introduction

Yield has become Ethereum’s defining feature since its adoption of Proof-of-Stake. Tens of billions of dollars have flown into liquid staking tokens since the fall of 2022, and in recent months, the allure of re-staking via Eigenlayer has further drawn in capital. Underpinning this hunt for crypto-native yield has been a dynamic DeFi lending landscape allowing users to leverage up their exposure by borrowing against those staked and restaked positions. As restaking goes live in the coming months and Ethereum achieves its institutional ascendancy with an ETF by 2025, it is likely that the demand for leverage will only increase going forward.