Liquid Restaking Token (LRT) - Ushering in a New Liquid Staking Paradigm


Taking the next step forward in the staking ecosystem, we hope to start building the Liquid Restaked Token (LRT). The LRT leverages liquid staking infrastructure and opens up new opportunities to stakers. In this forum post, we briefly cover restaking, its advantages, opportunities, and the potential that LRT brings into the ecosystem.

For further details on restaking and EigenLayer, please refer here.

What is Restaking?

Restaking is a process that enables users to stake their ETH on multiple networks simultaneously, including Ethereum and other protocols integrated with EigenLayer. This approach provides several advantages, such as leveraging Ethereum’s security layer, enhancing capital efficiency, and earning additional rewards and governance tokens.

In this forum post, we explore the benefits, opportunities, challenges, and the introduction of the Liquid Restaking Token (LRT) as a potential solution.

Advantages & Opportunities of Restaking:

  1. Security for Protocols: Restaking allows protocols to tap into Ethereum’s robust security layer by incentivizing ETH stakers to restake on their respective protocols, enhancing the overall security of these networks.

  2. Sovereignty and Flexibility for Protocols: Protocols built on platforms like EigenLayer retain sovereignty and have the freedom to customize their architecture, including the choice of consensus mechanisms and slashing conditions.

  3. Increased Capital Efficiency for Stakers: Restaking enables stakers to earn rewards from multiple protocols using the same capital, optimizing their capital efficiency.

  4. Restaking Governance Tokens: Restaking offers the dual advantage of securing other services and earning additional rewards or governance tokens, making it an appealing approach for ETH stakers.

Potential Challenges Faced by Restaking

While restaking provides numerous opportunities, it also presents challenges that need to be addressed effectively:

  1. Complex Discovery of Restaking Services: Growth in services makes it challenging for stakers to discover suitable restaking services, requiring thorough research and understanding of the services and restaking.

  2. Complex UI/UX: Managing multiple assets across various platforms and handling different governance tokens can be complex and potentially burdensome for stakers.

  3. High Gas Fees: Gas fees associated with claiming rewards from restaking and staking can significantly impact profits, especially for smaller investors.

  4. Liquidity Constraints: When ETH is staked or re-staked, it becomes illiquid and cannot be readily used or traded until the unbonding period expires, which could be a significant drawback.

  5. Decision Dilemma: Users face the challenge of choosing between restaking and DeFi, assessing the risk-reward ratios with limited information.

Introducing LRT (Liquid Restaking Token):

To address these challenges, the Liquid Restaking Token (LRT) or EigenETH is introduced as a potential solution. EigenETH is a synthetic token provided on top of restaked ETH, ETHx, or other restaked LSTs. It not only solves the aforementioned problems but also enables simultaneous access to restaking and DeFi.

Here’s how it works:

  1. Restakers stake their ETH or liquid tokens.
  2. They receive LRT tokens, such as EigenEth, representing the underlying restaked assets.
  3. EigenEth receives ETH staking rewards and restaking rewards (c-token).
  4. EigenEth can be deployed on DeFi platforms for various purposes, including AMMs and lending markets.

The LRT DAO selects validators and services for restaking ETH, with potential future options for validators to join in a permissionless manner. A multi-pool architecture similar to ETHx can facilitate this process.

Market Opportunity:

Restaking and Liquid Restaking present a significant market opportunity, particularly in the early stages. The PoS staking market is already substantial, with a total Ethereum market cap of approximately $230 billion and staked Ethereum reaching $40 billion. The current staking rewards on Ethereum alone amount to around $2 billion, and the potential rewards from restaking could surpass this as more services opt for staking. This early-stage market opportunity provides a favorable landscape for early movers to capture.


The introduction of liquid restaking and the LRT token offers a promising paradigm shift in the staking ecosystem. While challenges exist, the potential benefits, such as enhanced security, capital efficiency, and the integration of restaking and DeFi, make it a rewarding product to build upon. The LRT protocol is still in early stages of assessment of technical, legal, and protocol risks. We look forward to the community’s feedback to improve the solution further.


I am going to re-read the EigenLayer WP and come back in a while.

Looks promising!


ok, here I am again.

Eigen Layer is a ground-breaking concept and I find this LRT… simple but brilliant!

  1. Definitely if many services start to pop up… some will be worth it and some will not.
  2. And their manifold tokens given as rewards will be a pain in the neck to harvest!

So an LRT is the perfect option!

It reminded me about a personal pain-point I had:

I was using Hidden Hand to automate the payments of my AURA bribes… but after 6 months I ended up with 10 different tokens! they were expensive and not-capital-efficient to harvest.

Then Jones DAO came along with its wjAURA, which sells all this rewards and autocompounds them buying more AURA, and gaining more bribes over time. It has been smooth sailing since.


Quite interesting stuff. Saw it some hours ago on RocketPool discord and wanted to sign in here to share my thoughts.

Restaking and EigenLayer seem as interesting/promising as unknown for the majority of the ETH community, including myself.
I Have seen some chatter that it won´t be compatible with RP nodes so far, guess the same applies for Stader ones, right? Also as you pointed, even if I could run it within my node, would be quite inefficient to claim many different tokens and swapping them.

Willing to read further news and development from this idea.


Excited for this. Re-staking could be a gamechanger, and this is definitely the best way to leverage it and be a first mover in the ecosystem.

I have explored EigenLayer considerably during the past weeks, and as @ETHmaxi has said, 0x01 addresses are not able to create an “EigenPod”, which is how EigenLayer denominates the validators that restake their native staked ETH. Therefore, both RP and Stader nodes wouldn’t be able to participate in restaking their validators.
Also, I believe that it wouldn’t be as simple as restaking your validator. I assume that depending on the AVS you choose to secure, you would also have to run certain additional software and tasks, so the hardware requirements would increase and not every Ethereum node would meet those extra requirements.

Apart from these technicalities, it clearly requires a higher amount of time and effort to keep updated to all the AVS available, their R:R ratio, the requirements needed, extra maintenance, different tokens as rewards, etc. So this LRT idea would solve a lot of possible pain points that restaking will probably originate.

However, I understand and support that permissionless validators won’t be accepted since day 1, as the tech has yet to be explored and studied in depth to understand how this could be done safely for both validators and the liquid restakers.

All in all, I feel this idea, if developed correctly, could become the go-to for any person wanting to get exposure to restaking in a really simplified, accesible and secure way. Moreso like the initial times of Liquid staking and its main reason to exist, but to a greater extent due to the increased complexity.


Saw this forum on Twitter. Is there more documentation on how this idea is implemented? This idea looks great. Is Stader token going to be involved with this protocol?

How is the team looking to organize this protocol? How closely is the Eigenlayer team involved, as this idea seems to require Eigenlayer to go completely live?


The post is by Stader core team member and this is part of the roadmap. We are working through the legal, risks involved and will share more info soon. Ofcourse we are talking/ working with EigenLayer team to build this correctly.


Saw this forum post in twitter, like @slingshot.

The LRT idea is simple but powerful. TLDR (can you please let me know if I got it right?)

today, when you restake, say, your stETH (or ETHx in the future) you are not receiving anything

imagine your receive back eigenETH, that represents the underlying restaked LST

and you can take that eigenETH and keep doing DeFi.

Super. Freaking. Cool.

Questions on my side:

  • will the SD token govern the LRT DAO?
  • as @slingshot says, this seems to need eigenLayer team’s involvement 100%. Today, we restake by going to EigenLayer website. If we were to Liquid restake, we would need to go to… ?



The concept is correct. Regarding your qns, we will come back with a detailed note on how it works soon.