Capital Inefficiencies in DeFi and the EigenFi Model
How Helix Labs is turning idle staked assets into a multi-yield, composable engine.
Introduction
Billions in crypto assets are staked across various networks. But much of this capital sits idle. It can’t be borrowed, can’t be traded, and often can’t even earn additional yield. DeFi was meant to solve financial inefficiencies—but instead, it has recreated many of them in digital form.
Helix Labs and its EigenFi product offer a coordinated solution: unlock capital without breaking security assumptions and enable that capital to be productive across multiple yield sources.
Where Capital Breaks Down
Locked Capital: Native PoS staking removes assets from usable supply. Users gain base yield but lose utility.
Fragmentation: Every L1 has its own validator set, staking logic, and tokens. None of them work well together.
Yield Silos: Even if you hold an LST, few chains have mature restaking or DeFi ecosystems to use it.
Duplication: Wrapped assets multiply versions of the same token, each with less trust and lower liquidity.
How EigenFi Fixes the Flow
Helix Labs, through EigenFi, creates a liquidity vault layer on top of L1 staking. It accepts native tokens, mints ERC-20 Liquid Restaked Tokens (LRTs), and allows them to:
- Be restaked into AVS through EigenLayer
- Be deployed into lending, LPs, and other DeFi products
- Be claimed with yield from both PoS and AVS layers
It creates a capital engine that does more with every staked token.
Layered Yield
EigenFi users benefit from:
- L1 staking rewards
- EigenLayer AVS incentives
- Liquidity provider or lending yield
This multi-yield stack gives restakers more utility and flexibility, creating new capital loops within DeFi.
The Capital Efficiency Loop
Here’s how it works in practice:
- Stake native asset (e.g. ICP, ADA, MOVE)
- Receive LRT via EigenFi Vault
- Restake into EigenLayer and/or deposit in DeFi
- Claim all layers of yield
- Reinvest or exit as needed
This turns staking from a passive yield strategy into an active, composable toolset.
Helix Labs: Making It Possible
Helix Labs coordinates everything behind the scenes:
- Routing LRTs into AVS efficiently
- Managing cross-chain state with Chain Fusion
- Tracking validator integrity and rewards
Its infrastructure ensures capital moves through the highest-value paths, without users needing to manage multiple contracts or chains manually.
Conclusion
DeFi isn’t capital-efficient by default. But Helix Labs and its EigenFi product bring liquidity, security, and yield into alignment. By unlocking the full utility of staked assets across chains, they offer an infrastructure where capital is no longer trapped—it’s activated.