ETHplus provides diversified exposure to the Ethereum liquid staking and restaking ecosystems through a single index asset.
The purpose of this report is to inform and educate the wider Reserve community on ETHplus activity, while serving as a reference library for governance, social media and on-chain data. A secondary aim is how this data can drive and direct action amongst stakeholders over the next quarter.
Summary
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ETHplus entered Q1 2026 in a consolidation phase following the sharp liquidity driven contraction observed in Q4. Market cap declined a further 29.9% quarter on quarter, largely tracking the 30.5% decline in ETH price over the same period.
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In contrast to the previous quarter, ETHplus supply stabilised, increasing slightly from 33,953 ETH to 35,155 ETH (+3.5%), suggesting the majority of forced deleveraging across large liquidity providers has now largely concluded.
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Token holder and transfer metrics continued to grow, with holders increasing 21.4% and total transfers rising 26.1%, indicating continued organic usage despite weaker dollar denominated headline metrics.
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DeFi supply declined modestly, though the pace of contraction slowed significantly compared with Q4. Morpho balances stabilised while new integrations such as the Tulipa ETHplus vault introduced additional distribution channels.
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The Tulipa vault attracted ~2,610 ETH shortly after launch, highlighting growing demand for structured ETHplus strategies and new avenues for distribution beyond traditional lending markets.
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Diversification improved slightly following the introduction of weETH to the collateral basket, increasing the diversification ratio from 65.5% to 67.5% while keeping a constant yield profile.
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Governance activity remained active throughout the quarter with proposals covering methodology updates, revenue share adjustments and the Q1 rebalance, all passing with strong support.
ETHplus Headline Metrics
Following the sharp contraction in Q4, ETHplus entered Q1 2026 in a period of consolidation rather than immediate recovery. Market cap declined a further 29.9% quarter-on-quarter, falling from $101.9m to $71.3m, broadly tracking the 30.5% decline in ETH price over the same period. In contrast to Q4, ETHplus supply stabilised, increasing slightly from 33,953 ETH to 35,155 ETH (+3.5%), suggesting the majority of forced deleveraging seen late last year has now largely run its course.
Total TVL declined from $104.5m to $72.8m (-30.4%), again largely reflecting ETH price movements rather than meaningful capital outflows. Meanwhile RSR staking continued to contract, with staked value falling from $2.63m to $1.44m, in part due to the Revenue Share adjustment which reduced the allocation to stRSR from 5% to 3%.
Basket APY declined modestly from 2.6% to 2.3%, reflecting longer ETH validator queues and generally lower economic activity on Ethereum mainnet. Encouragingly, diversification improved slightly during the quarter, with the diversification ratio increasing from 65.5% to 67.5% following the introduction of weETH to the collateral basket.
Q1 represents a stabilisation phase for ETHplus, with supply finding a new baseline while governance efforts shift toward rebuilding sustainable DeFi liquidity.
Current ETHplus Collateral Basket
Two changes were made to the collateral basket this quarter, both part of the Q1 rebalance proposal which was executed in two steps. The rebalance introduced weETH and adjusted weightings across the basket to improve diversification and liquidity depth, increasing the diversification ratio from 65.5% to 67.5%.
Token Holder and Transfer Metrics
Despite the weaker dollar denominated headline metrics in Q1, ETHplus continued to see healthy growth in usage and wallet distribution. Total holders increased from 443 to 538 (+21.4%), while 90 day transfers rose from 51,627 to 61,161 (+18.5%) and total transfers increased from 145,970 to 184,126 (+26.1%). This suggests ETHplus continued to see organic usage growth even as broader market conditions remained weak.
This is particularly encouraging given Q1 was defined more by consolidation than expansion in TVL terms. While market cap and DeFi supply declined alongside ETH price weakness, wallet growth and transfer activity continued to move higher, indicating that ETHplus remained actively used across wallets, integrations and on-chain strategies. These metrics suggest adoption continued to broaden during the quarter, even as the asset operated at a smaller overall scale.
DeFi Integrations
Following the sharp contraction in DeFi supply during Q4, ETHplus exposure across DeFi markets declined further in Q1, though at a slower pace. Total ETHplus supply across DeFi fell from 11,346 ETH to 10,417 ETH (-8.2%), while dollar denominated TVL declined from $34.0m to $22.7m (-33.4%), largely reflecting the decline in ETH price rather than large liquidity withdrawals.
Morpho remained the primary venue for ETHplus supply. Balances were broadly stable on an ETH basis, moving from 5,625 ETH to 5,637 ETH, though the dollar value declined alongside the wider market. Despite this stability, Morpho continues to represent a significant share of ETHplus’ DeFi footprint, reinforcing the importance of expanding integrations across additional venues.
Curve supply declined from 3,468 ETH to 2,810 ETH (-19.0%), reflecting reduced participation in ETHplus/ETH pools following the unwind of several leveraged strategies. Uniswap supply remained relatively small and continued to trend slightly lower over the quarter.
Outside of these core venues, Q1 saw two notable developments. Term Finance markets saw a partial return to ETHplus, with approximately 500 ETH supplied following the full exit observed in Q4. In parallel, the Tulipa ETHplus vault launched as a new distribution channel, attracting 2,610 ETH (~$5.7m) shortly after launch while offering a 30 day yield of roughly 16%.
While overall DeFi supply remains well below the highs seen earlier in 2025, new integrations such as Tulipa and the stabilisation of supply on Morpho point to improving distribution across the ecosystem.
Morpho Markets
Morpho remained the dominant venue for ETHplus supply. Balances were broadly stable during the quarter, holding around 5,600 ETH, suggesting the majority of the deleveraging observed in Q4 has now largely concluded. Morpho therefore continues to act as the primary liquidity hub for ETHplus within DeFi.
Curve LP Pairs
ETHplus supply across Curve declined during the quarter, falling from 3,468 ETH to 2,810 ETH (-19%). This is surprising as it follows the integration of the ETHplus/ETH LP as collateral across Gearbox vaults which has seen strong organic adoption, driving liquidity into the StableSwap LP.
Uniswap LP Pairs
Gearbox
Term Finance Markets
Tulipa ETH Market
The launch of the Tulipa ETHplus vault introduced a new structured distribution channel for the asset during Q1. The vault attracted approximately 2,610 ETH (~$5.7m) shortly after launch and offers a 30 day yield of roughly 12%. While deposits ultimately sit within underlying protocols and are therefore excluded from total DeFi supply to avoid double counting, the early uptake suggests strong demand for structured ETHplus strategies and may represent an important new distribution avenue going forward.
Governance
Proposal 1 - ETHplus Mandate and DTF Methodology Update
RFC
Total unique commenters - 2
Off-chain Poll - 7 votes (7 for / 0 against)
IP
Unique Voters - 4
For - 223m (283% quorum)
Against - 0
Proposal 2 - ETHplus revenue share adjustment
RFC
Total unique commenters - 3
No Off-chain Poll included
IP
Unique Voters - 3
For - 223m (283% quorum)
Against - 0
Proposal 3 - ETHplus Rebalance Proposal Q1 2026
RFC
Total unique commenters - 3
Off-chain Poll - 7 votes (7 for / 0 against)
IP - Step One
Unique Voters - 3
For - 223m (283% quorum)
Against - 0
IP - Step Two
Unique Voters - 4
For - 116m (150% quorum)
Against - 0
Proposal 4 - ETHplus Upgrade to Release 4.2.0 and Removal of Legacy Onchain State
RFC
Total unique commenters - 1
Off-chain Poll - 2 votes (2 for / 0 against)
IP
IP in-flight at time of posting.
Social Media
This section looks at the data surrounding the ETHplus X account only
Most Viral Tweet
ETHplus social media activity continued to grow during Q1, with posting cadence increasing from 82 to 99 posts (+20.7%) over the quarter. Despite this higher activity, total impressions declined from 36,110 to 28,500 (-21.1%), reflecting the absence of the highly viral posts that characterised Q3 and the broader slowdown in market engagement.
Profile clicks also declined modestly from 211 to 158 (-25.1%), broadly tracking the reduction in impressions. However, follower growth remained positive, increasing from 1,560 to 1,580, suggesting the account continues to attract new users despite lower overall reach.
Overall, social media metrics appear to be stabilising following the surge in activity seen through mid-2025, with growth now occurring at a slower but more sustainable pace.
Implications for Governance
The following points aim to translate Q1 data points into areas for further exploration, discussion, prioritisation and potential coordination across delegates, contributors, and ecosystem partners over the coming quarter.
Growth & Distribution
- ETHplus supply stabilised (+3.5%) despite ~30% ETH price decline
→ Indicates deleveraging has largely completed and a new baseline is forming
→ Should growth now focus on new demand rather than recovery of legacy TVL? - Structured products (e.g. Tulipa ETHplus) attracted ~2,610 ETH
→ Although incentivised this demonstrates strong demand for packaged ETHplus exposure
→ Given historically employed growth strategies have now been found to be deeply unprofitable. Are curated products like this a more scalable path? - Holder (+21.4%) and transfer growth (+26.1%) remained strong
→ Suggests adoption is broadening. How can usage be converted into persistent, non-mercenary capital?
DeFi Integrations & Liquidity
- DeFi supply contraction slowed (-8.2% ETH terms)
→ System moving from contraction toward equilibrium
→ If deep incentive programmes that were previously enjoyed can’t be relied upon in the future is leverage-driven growth unlikely to return at scale? - Morpho balances stable (~5,600 ETH) and still dominant
→ Reinforces reliance on a small number of venues
→ Should focus be on diversification or deeper integration? - Curve liquidity declined (-19%)
→ LP capital has not meaningfully returned post-deleveraging
→ Should incentives be reconsidered here? Can they be justified given 7% of revenue is now shared with the protocol? - New integrations (Tulipa) and reintroductions (Term Finance) show early traction
→ Alternative distribution pathways are coming online. Should these be prioritised over rebuilding legacy liquidity?
Governance & Participation
- Participation remains concentrated despite strong proposal support
→ Decisions driven by a small group of active contributors - Recent proposals passed with strong alignment
→ High consensus but limited breadth of input - How should new delegates be integrated into ETHplus governance to promptly rectify these issues?
Operations & Communication
- Activity increased but impressions declined (-21.1%)
→ Clear shift to more organic growth - Resource allocation remains focused on governance and integrations
→ Communication plays a supporting, not leading role
→ Should comms remain minimal or more targeted toward distribution efforts?
Conclusion
Q1 2026 represents a period of stabilisation for ETHplus following the sharp liquidity contraction observed in late 2025. While market cap and TVL declined alongside broader market conditions, ETHplus supply stabilised and usage metrics continued to grow, suggesting the majority of forced deleveraging has now passed.
Encouragingly, progress continued across both governance and integrations during the quarter. The introduction of weETH to the collateral basket modestly improved diversification, while the launch of the Tulipa ETHplus vault demonstrated growing demand for structured ETHplus strategies.
Looking ahead, the priority for ETHplus will be rebuilding sustainable, unincentivised liquidity while continuing to expand distribution across DeFi and structured products. With supply stabilising and new integration pathways emerging, ETHplus enters the next quarter positioned to gradually rebuild scale while strengthening the resilience of its liquidity base.
If you’ve enjoyed this report, please find its companion liquidity report here. This report takes a closer look at the on-chain liquidity of ETHplus and its constituent collaterals with the aim of informing and educating the wider Reserve community, key stakeholders and institutional capital allocators on key liquidity metrics to support allocation decisions and governance activities over the next quarter.
Finally, if you’ve enjoyed this report and consider me, Ham, a valued steward of the ETHplus Yield DTF please consider delegating your voting power to me to ensure your voice is always represented in Reserve governance. I’m an independent delegate who, since my delegation platform began in July 2025, hasn’t missed a Yield protocol governance vote. You can find more information on my delegation platform.
TG: @hamdefi
Discord: Ham6869
