BlockchainAdvanced#DeFi#EigenLayer
LRT (Liquid Restaking Tokens)
L
Definition
A new layer of staking where LSTs are restaked on platforms like EigenLayer to secure additional services, issuing a new liquid token.
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Concept Diagram
Key Takeaways
1
LRTs represent restaked assets that secure multiple protocols simultaneously via EigenLayer
2
They stack yields from base ETH staking plus additional AVS rewards on top
3
Higher yield comes with higher slashing risk across multiple secured networks
4
LRTs create a new yield curve in DeFi between base staking and high-risk trading
Practical Example
You deposit ETH into a restaking protocol and receive rETH (LRT). You earn 3.5% from Ethereum staking + 1.2% from securing an oracle AVS + 0.8% from a DA layer AVS = 5.5% total APY, but with slashing exposure to 3 networks.
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Related Terms
Blockchain
EigenLayer StakingThe process of 'Restaking' ETH or LSTs to secure multiple networks simultaneously, providing hyper-efficient yield.
Blockchain
LST (Liquid Staking Tokens)Tokens that represent staked assets (like stETH for ETH), allowing users to earn staking rewards while keeping their capital liquid for DeFi.
Blockchain
EigenLayer AVSActively Validated Services that use restaked ETH to secure their system without needing to bootstrap their own validator set.
Strategy
StakingThe process of locking up digital assets to support a network's operation in exchange for newly minted rewards.
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