Users restaking Ethereum will get points that they can exchange for Clay tokens when the native tokens officially launch.
Crypto staking platform ClayStack has announced it will support Ethereum (ETH) restaking via ETH native protocol EigenLayer. The platform has also announced it will give users rewards comprising Clay points and EigenLayer points.
ClayStack Restaking Ethereum
As part of the new offering, ClayStack will change its ETH liquid staking token known as csETH, to a liquid restaking asset. At the moment, users can only use ETH for direct restaking on EigenLayer. However, ClayStack CEO and founder Mohak Agarwal said the plan is to provide support for Rocket Pool Ether (rETH) and Lido staked Ether (stETH) very soon.
EigenLayer launched in June 2023 and has significantly driven Ethereum staking since then. By November, the protocol had processed 170,000 ETH in staking. As of Tuesday, the total value locked (TVL) on EigenLayer is $1.7 billion.
Restaking is a process that uses liquid staking tokens and staked Ether to improve earnings across multiple platforms. It combines traditional staking, which locks tokens to generate rewards, and liquid staking, which also creates rewards but by using liquid tokens as representations of locked assets.
ClayStack started liquid staking for the MATIC token in 2022. It then launched ETH liquid staking in September 2023, and is now focusing on ETH staking. On moving on from Polygon, CEO Agarwal said:
“Due to shrinking yield and the limited DeFi ecosystem on Polygon outside major ones like Compound and Aave (which delisted the majority of the less traded or volatile assets), it became very difficult to build more utility on Polygon liquid staking.”
ClayStack has plans to launch its network token and is offering early users of its ETH staking service the opportunity to earn. According to the platform, restakers who earn clay points can redeem them 1:1 for clay tokens. Agarwal pointed out that “there is no other points system currently that offers 1:1 redemption. You can own 1 million points in other programs and you could end up getting 100 tokens.”
The plan is to allocate 20 clay points per ETH each week. While the rate may change weekly, users have no minimum or maximum points to maintain. Nonetheless, ClayStack will maintain a cap on points that all users can get. This cap will refresh weekly.
In addition to Clay points, users will also get EigenLayer restaked points. Agarwal said:
“When ClayStack natively restakes the ETH on ÉigenLayer, ClayStack’s smart contract ends up accruing those points. We don’t know what they will be redeemable to; we will just pass along those points to csETH holders, considering so much excitement amongst users for EigenLayer points.”
Last November, non-custodial staking services provider Stakin announced a partnership with ClayStack. The collaboration between both providers offers users a new staking experience without compromising security and resilience. Users will also enjoy more control over their staked assets.
In 2021, ClayStack received $5.2 million in seed funds from several investors, including Solana Foundation and Coinbase Ventures. ParaFi Capital and CoinFund led the seed round.