LRT Token
LRTs (liquid restaking tokens) are tradeable receipts for restaked positions: deposit stETH or ETH into EigenLayer via a protocol, receive an LRT, keep ear
LRTs (liquid restaking tokens) are tradeable receipts for restaked positions: deposit stETH or ETH into EigenLayer via a protocol, receive an LRT, keep earning (and keep the receipt liquid for DeFi). Ether.fi, Renzo, and Kelp pioneered the category.
How it works
Same pattern as liquid staking, one floor up: the protocol manages operators and AVS selection; you hold a token tracking your share plus accumulated rewards. The LRT itself becomes DeFi collateral — lent, looped, and leveraged across protocols.
Why it matters for decentralization
LRTs decide *who* restakes at scale: a handful of large issuers choosing operators for everyone concentrates the exact power restaking was meant to distribute. Issuer diversity, operator sets, and withdrawal mechanics are the three numbers that matter.
Risks & trade-offs
Depegs when withdrawals queue or AVSs slash; looped leverage amplifying shocks; smart-contract stacking (LRT protocol + EigenLayer + AVS = three audits to trust); and points-farming distorting honest yield signals.
FAQ
LRT vs LST? LST = liquid *staking* (Ethereum yield). LRT = liquid *restaking* (Ethereum yield + AVS rewards + AVS slashing risk).
Can LRTs depeg? Yes — they’re market-priced claims, not redemptions on demand. Queues and fear both gap the price.
Who picks the operators? The LRT issuer — which is precisely the centralization question to ask before depositing.