Liquid Restaking Token (LRT)Beginner's Guide
LRT Represents a liquid restaking position, allowing assets to continue earning relevant rewards while remaining transferable and usable in DeFi, although the additional sources of yield also entail additional risks.
LRT What is Restaking
Users deposit ETH or liquid staking tokens into a restaking protocol, after which the protocol uses these assets to help secure other networks or services and issues users LRT。LRT representing the corresponding restaking position, whose value can gradually accumulate through staking rewards and additional restaking rewards.
How is “liquidity” reflected
LRT is transferable, so holders do not have to leave their funds completely idle in a locked state. They can hold or trade LRT, or use it in other decentralized finance applications; meanwhile, the original restaking position can continue earning relevant rewards.
LRT and LST Differences
LST represents staked assets used to secure a single network;LRT further reuses the same underlying staked assets to provide security for one or more additional services. Therefore,LRT may have access to more sources of rewards, but the scope and structure of the risks also expand accordingly.
Risks to watch for
Restaking adds additional staking layers to the same capital, potentially increasing both returns and risks. Key risks include smart contract vulnerabilities,slashing slashing caused by improper validator behavior, and LRT the possibility that its market price falls below the value of its underlying assets.
Original Tutorial
https://www.binance.com/en/academy/glossary/liquid-restaking-token-lrt
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