As a liquid service provider that issues liquid staking tokens (LST), such as Lido and Rocket Pool, they are also a native restaker and can redirect their ETH to the EigenPod Contract to earn EigenLayer’s rewards. Additionally, their users who hold LST can also restake to earn EigenLayer’s rewards and have equal contribution points. This means that one validator or one ETH can earn double EigenLayer rewards. However, as a native staker, I believe this is unfair. LST should not be allowed to restake.
I have already raised this question on Discord and received a response, but Discord is not the appropriate platform for discussing this issue. Therefore, I am posting it here for everyone to discuss together.
