What is this?
LRT (Liquid Restaking Tokens) is a tokenized representation of assets that have been restaked in security protocols. Simply put, it's a 'receipt' that you haven't just staked your Ethereum, but you have allocated it to secure other networks (AVS), while retaining the ability to use these funds in other DeFi protocols.
Imagine this as a multilayered cake:
Layer 1 (Staking): You stake ETH to secure the Ethereum network.
Layer 2 (LST): You receive a token (for example, stETH) that confirms your stake and makes it liquid.
Layer 3 (Restaking): You give this stETH to a protocol (like EigenLayer) to secure additional services (oracles, bridges).
EIGEN----Layer 4 (LRT): You receive a new token (LRT) that allows you to trade this 'restaked' asset while it operates.
Why is this a trend now?
By the end of 2025, the restaking ecosystem has significantly scaled. LRT has become the foundation of the 'points economy' and multi-level yields.
Capital efficiency: Users aim to maximize the utility of each token, earning income from staking, restaking, and DeFi simultaneously.
Accessibility: Restaking can be technically complex for newcomers, while buying LRT tokens on an exchange is the easiest way to 'get in the game'.
Risk Management: It is expected that LRT protocols will automatically allocate assets among the most reliable services (AVS), although this is expected behavior and does not guarantee the complete safety of funds.
What risks exist?
It is important to understand that LRT creates additional levels of risk:
Smart contract risk: An error in any of the protocols in the chain can lead to losses.
Depeg risk: In moments of high volatility, the price of LRT can significantly differ from the price of the underlying asset, as we have already seen in previous cycles.
Slashing: If the network operators you protect behave dishonestly, your asset may be partially confiscated — this is a standard blockchain protection mechanism, not a guarantee of capital preservation.
Summary
LRT is a powerful tool that makes complex blockchain security mechanisms accessible to ordinary users.
This is a step towards transforming Ethereum into a global 'security layer' for the entire internet.
Want to know more? Subscribe, because it will get even more interesting on our shared journey to knowledge in the world of Web3!
My friend, did you understand and remember today's crypto term? Then don't hesitate, and take the test in this post. The first 600 readers who can answer correctly will receive not only my respect but also crypto as a gift 🎁
