LRTs

Currently, there are no fully functional re-staking services with a complete ecosystem of re-stakers, node operators, and AVSs. However, the demand for slashable security to bootstrap other forms of Proof-of-Stake networks exists, continuously attracting more mindshare. In addition to EigenLayer, other re-staking protocols are entering the market.

Ion Protocol offers a set of advantages to this new profile of stakers by leveraging our consensus layer risk framework to integrate restaked assets as collateral.

Liquid Re-staking Tokens (LRTs)

LRTs with underlying deposits that are being restaked into similar node operator groups, validating similar AVS's, would be fungible between each other. In other words if LRTs share a similar risk profile, they can be swapped. This common risk profile is defined by the AVS's design choices as it relates to slashing + penalty rules and reward distribution logic.

Ion's risk infrastructure, designed for monitoring consensus layer activity can underwrite the complex risk and reward of restaked deposits.

Restakers will be able to deposit their LRTs into Ion Protocol and borrow stETH and other staked and restaked assets to participate in the broader DeFi ecosystem while retaining their exposure to diverse sets of staking yield originating from AVS's.

LRTs In Ion

LRTs can be used as collateral on Ion to borrow. By providing LRTs as collateral, borrowers can boost their exposure to EigenLayer Points, liquid restaking provider points, and secure their position in Ion to earn boosted restaking yield once AVSs go live.

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Last updated 6 months ago