A Liquid Restaking Token (LRT) is a derivative token that represents restaked ETH. When users deposit ETH or liquid staking tokens (LSTs like stETH or rETH) into a restaking protocol, they receive an LRT in return — a liquid, composable token they can use across DeFi while still earning restaking rewards.
LRTs are to restaking what LSTs (like stETH) are to staking.
Background: The Restaking Stack
| Layer | What it is |
|---|---|
| ETH | Base asset; staked to validate Ethereum |
| LST (e.g. stETH) | Liquid token representing staked ETH |
| Restaked ETH | LST or ETH deposited into EigenLayer to secure AVSs |
| LRT (e.g. eETH) | Liquid token representing restaked position |
Each layer adds yield, but also adds complexity and risk.
Why LRTs Exist
Restaking via EigenLayer locks capital — natively restaked ETH and LSTs are encumbered by slashing conditions across multiple Actively Validated Services (AVSs). Without an LRT, that capital is illiquid.
LRT protocols:
- Accept ETH or LSTs from users
- Deposit into EigenLayer on their behalf
- Delegate to node operators running AVS infrastructure
- Issue LRT tokens representing the user’s claim
The LRT is then freely tradeable and usable in DeFi — as collateral on Aave, in Curve pools, etc.
Major LRT Protocols
| Protocol | LRT Token | Notes |
|---|---|---|
| ether.fi | eETH / weETH | Largest by TVL; also issues ETHFI governance token |
| Renzo | ezETH | Multi-AVS focus; rapid early growth |
| Puffer Finance | pufETH | Anti-slashing focus via SGX secure enclaves |
| Kelp DAO | rsETH | Multi-asset restaking (stETH, ETHx, sfrxETH) |
| Swell | rswETH | Integrated with Swell L2 |
| Eigenpie | mstETH, etc. | Isolated restaking per LST asset |
Yield Sources for LRT Holders
Users holding LRTs earn from multiple sources simultaneously:
- ETH staking yield (~3–4% APY base)
- Restaking yield — from AVSs paying node operators (nascent, growing)
- EigenLayer points — early-stage yield proxy before EIGEN token distribution
- Protocol points — LRT protocols issue their own points for governance airdrops
The “points meta” of 2024 was largely driven by LRT protocols stacking points on top of points.
Risks
| Risk | Description |
|---|---|
| Slashing | AVSs can slash restaked capital for violating conditions |
| Smart contract risk | Multiple protocol layers increase attack surface |
| Depeg risk | LRTs can trade below peg if redemption is constrained |
| AVS quality | Poor AVS operators or malicious AVSs could trigger slashing |
| Concentration | Top LRTs control majority of EigenLayer TVL — systemic risk |
The ezETH depeg event in April 2024 (Renzo pausing withdrawals during TGE) demonstrated depeg risk concretely.
Sources
- EigenLayer documentation: Restaking & AVS overview
- ether.fi, Renzo, Puffer Finance documentation
- Delphi Digital: “LRT landscape report” (2024)