native Liquid Restaking Tokens (nLRTs)
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Think of nLRTs as version 2.0 of LSTs π€―
What is an LST?β
Liquid Staking Tokens (LSTs) represent staked ETH in a tokenized format, providing liquidity to stakers while their ETH remains locked on the beacon chain. Through LSTs, stakers passively earn PoS rewards without needing to operate a validator. These tokens offer multiple benefits:
- Liquidity: By staking ETH, users receive a tradable token that can be used in various DeFi activities.
- Ease of Use: Rewards accrue to LSTs automatically without requiring actions by the staker.
- Flexibility: With LSTs, users can participate in a wide range of DeFi protocols, multiplying potential yield avenues.
Introducing native Liquid Restaking Tokens (nLRTs)β
Ethereum's constantly evolving staking landscape has given rise to a new token model: the native Liquid Restaking Token (nLRT). This modern take on liquid staking provides a unique advantage over its predecessor, the LST.
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Fundamentally, an nLRT is an LST that delivers traditional PoS rewards and boosts these with additional restaking rewards.