Liquid Restaking Token (LRT)

Restaking is faced with the same liquidity problem as PoS staking: after staking your assets, they become "locked" in the nodes, thus losing liquidity. Just like PoS staking needs Liquid Staking Tokens (LST) to unlock liquidity, making Lido the biggest DeFi protocol by TVL, restaking also calls for Liquid Restaking Tokens (LRT).

LRT is inherently more complicated than LST, both technically and economically. For an LST, all underlying tokens are only staked for one task, that's securing the PoS chain. However, for an LRT, there will be multiple AVS (actively validated services), namely applications and networks that use restaking for security, to select for restaking, which will lead to multiple different type of additional rewards to be distributed. This means an LRT protocol can provide much higher value add than an LST protocol, and its governance has a much more significant impact on the performance of the protocol.

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