What is Liquid Restaking?
Liquid restaking takes staked ETH (via LSTs) and restakes it on EigenLayer to secure additional networks (AVS). This generates extra yield on top of base staking rewards.
How Liquid Restaking Works
Deposit: Stake ETH or LSTs with a liquid restaking protocol Receive LRT: Get a liquid restaking token like eETH, weETH, or rsETH Earn Stacked Yields: Base staking + restaking rewards + points Use in DeFi: LRTs can be used across DeFi like LSTsTop Liquid Restaking Tokens
- eETH/weETH (ether.fi): Largest LRT, non-custodial model
- rsETH (Kelp): Accepts multiple LSTs as deposits
- ezETH (Renzo): Simple restaking experience
- pufETH (Puffer): Anti-slashing technology
Yield Sources
- Base Staking: ~3-4% from Ethereum PoS
- AVS Rewards: Additional yield from secured services
- Points/Airdrops: Protocol incentive programs
Risks to Consider
- Slashing Risk: Additional slashing conditions from AVS
- Smart Contract Risk: Multiple protocol layers
- AVS Risk: New services may have vulnerabilities
- Complexity: More moving parts than simple staking
Getting Started
- Choose an LRT based on yield and security
- Deposit ETH or LSTs
- Receive LRT tokens
- Use in DeFi or hold for yields
- Monitor AVS allocations and risks