LRT Strategy Analysis: How to Maximize the Use of ETH in the Eigenlayer Ecosystem

As Eigenlayer is about to open LST deposits, investors are faced with the question of how to choose the best LRT to maximize returns. This article will compare and analyze the characteristics of various LRT projects and provide several investment strategies for reference.

Overview of Key LRT Projects

The main LRT projects in the market currently include EtherFi, KelpDAO, Puffer, Renzo, Eigenpie, and Swell. They each have their own characteristics:

• Eigenpie: Provides the richest rewards, with the highest certainty and potential for returns.
• Puffer: Strong background, considered to have a high possibility of being listed on a major exchange.
• EtherFi: the largest in scale, with the best liquidity, supporting the unstake feature.
• KelpDAO: The scale is second only to EtherFi, developed by the Stader team.
• Renzo: Supported by multiple well-known investment institutions, supporting native staking and LST.
• Swell: Combines LST and LRT functions, can work with Eigenpie to achieve multiple integrals.

Investment Strategy Recommendations

1. Multi-Integral Mining

Deposit ETH into swETH, then into Eigenpie, to simultaneously obtain:

• Eigenpie Integral
• Swellpearls Points
• Eigenlayer Points

You can obtain multiple benefits with a single operation. Subsequently, you can also deposit mswETH into other platforms to continue profiting.

2. Bet on Puffer

Puffer has received dual investment from a large investment institution and Eigenlayer, and the market generally believes that its potential for a large exchange is high. TVL is growing rapidly.

Note that Puffer currently only supports stETH, and stETH may reach the 33% cap of a single LST in Eigenlayer, resulting in fewer Eigenlayer points earned.

3. Stable Returns + High Potential

Deposit mETH into Eigenpie. The current APR for mETH is as high as 7.2%, more than double that of other LSTs. Eigenpie offers generous rewards and high growth potential.

This strategy can achieve stable high returns while also taking advantage of the surprises brought by LRT.

4. Retain Flexibility

Choose EtherFi. EtherFi supports the unstake feature, allowing users to swap back to ETH through DEX or wait 7-14 days for a 1:1 redemption of ETH.

Suitable for users with high liquidity requirements and low tolerance for depeg risk. EtherFi can also earn double points on certain DeFi platforms.

5. Lock High Yield

Purchase PT ( Principal Token) on a certain liquidity platform. This means giving up all points and staking rewards, but a fixed high APY can be obtained before the maturity date.

6. High risk, high reward

Buy YT ( Yield Token) on a certain liquidity platform. This is equivalent to 10x leveraged mining points. If the final point earnings exceed expectations, substantial returns will be obtained; otherwise, losses may occur.

7. Voting Mining

Purchase and lock governance tokens from certain platforms to participate in voting and earn additional point rewards. According to calculations, the efficiency may reach dozens of times that of regular mining.

However, this strategy is relatively complex and is only suitable for advanced users who are familiar with the relevant mechanisms. Additionally, it can only earn LRT points and cannot earn Eigenlayer points.

Conclusion

Currently, mainstream LRT projects are supported by well-known investors or mature teams, but there are still risks. Investors can choose suitable strategies to participate based on their own risk preferences and needs. It's also important to closely monitor market dynamics and adjust strategies in a timely manner.