Liquid Restaking Token (LRT)

The LRT is a layer that sits on top of restaking. Restaking, through EigenLayer (live on Ethereum mainnet since June 2023), lets staked ETH be reused to secure additional services, the Actively Validated Services (AVS). The challenge is that this capital stays locked. The LRT solves that opportunity cost: it issues a fungible token reflecting the value of the restaked underlying plus its rewards, while the base asset keeps securing the services.

The flow is straightforward. The user deposits ETH or an LST such as stETH, the protocol restakes it via EigenLayer toward one or several AVS, and mints the LRT, which is transferable and composable. That token works as collateral in lending or as liquidity on a DEX without withdrawing the original position. It captures two layers of yield, Ethereum's base staking and restaking rewards, and inherits the slashing risk of the secured services. It has no standard of its own: LRTs are ERC-20 tokens.