What is a Liquid Restaking?

What is Liquid Restaking?

When you restake your LSTs on a middleware solution such as EigenLayer, this typically means that you are becoming an operator and then selecting which AVS to secure in exchange for additional rewards.

However Liquid Restaking Platforms (LRPs) are protocols that do this for you on your behalf. They will deposit user assets in Restaking Platforms and over a representative token that represents your stake in return. These are known as Liquid Restaking Tokens (LRTs)

Liquid restaking platforms handle the technical complexities, including setting up operator software and choosing which network services to support. Users can seamlessly enter or exit restaking positions using Liquid Restaking Tokens (LRTs). Additionally, these tokens empower users to enhance their leverage by reinvesting in decentralized finance protocols. Essentially, these services mirror the functionality of more traditional liquid staking platforms like Lido.

What are LRTs?

Liquid Restaked Tokens (LRTs) are tokenized representations of restaked assets (staked LSTs) on middleware protocols like EigenLayer. Popular LRTs in the market include.

swETH by Swell on Ethereum

ezETH by Renzo on Ethereum

weETH by Ether.fi on Ethereum

pufETH by Puffer Finance on Ethereum