Inception Liquid Restaking Platform Ceases Operations

The liquid restaking token platform Inception has officially shut down after struggling to establish a"product market fit." Inception was a Layer 2 platform compatible with Ethereum's restaking protocols, EigenLayer and Symbiotic. It aimed to enhance liquidity and yield for restaked assets, specifically addressing EigenLayer's liquidity locking issue by enabling users to restake stETH, rETH, or cbETH using liquid restaking tokens (LRTs). This allowed users to utilize these assets across various networks for increased rewards. In a public update, the Inception team shared, "Over the past two years, we launched over 15 LRTs, expanded across ecosystems and chains, integrated with more than 60 DeFi protocols, and completed more than 8 audits to ensure security and quality." They aspired to establish a decentralized, permissionless, curator-led protocol aligned with Ethereum's principles. However, despite remarkable efforts, Inception failed to discover a suitable product market fit. Additionally, the deficiency of liquid rewards in shared security rendered the protocol's future unsustainable. While user funds are secure and withdrawals are fully operational, the team has advised users to promptly retrieve their assets. This closure comes shortly after Eigen Labs, the core developer of EigenLayer, reduced its workforce by 25%, or approximately 29 employees, to concentrate on the decentralized cloud platform EigenCloud. In mid-June, web3 venture firm a16z crypto purchased $70 million worth of EIGEN tokens to support EigenCloud, which was part of a larger $100 million Series B funding round that a16z led earlier in 2024. As of the publication date, the EIGEN token was trading at $1.42, marking a 10% increase and generating a trading volume of $144.8 million over the past 24 hours. In January, Inception raised $3.5 million in seed funding from investors, including CSP DAO, Tagus Labs, Londonreal Ventures, and DSRV. Disclaimer: The Block is an independent media outlet providing news, insights, and data. As of November 2023, Foresight Ventures holds a majority stake in The Block. Foresight Ventures also invests in various companies in the crypto sphere. The Block operates independently to deliver timely and precise information about the crypto industry.