Plain English
A liquid restaking token represents an LST further deposited into EigenLayer for restaking. EtherFi’s weETH, Renzo’s ezETH, Kelp’s rsETH. Stacks two layers of yield: base ETH staking plus restaking rewards from securing additional services (AVSs).
How it actually works
You deposit ETH or an LST into the LRT protocol; the protocol stakes the ETH (or holds the LST) and restakes the staked position through EigenLayer; rewards from AVSs accrue to LRT holders alongside base staking yield. LRTs are tradable and increasingly accepted as DeFi collateral.
What it means for you
LRTs are higher-yield than LSTs (often by 2–4% extra) but add stacked risks: validator slashing, AVS slashing, smart-contract risk. For HNW positioning, sizing LRTs as a portion of total ETH exposure (rather than 100%) is the prudent answer — keep a base of pure LST and rotate a slice into LRTs when reward markets justify it.
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Educational content only. Not investment, tax, or legal advice.