Liquid restaking FAQ
Plain answers to the questions people ask before buying an LRT.
What is a liquid restaking token (LRT)?
An LRT is a token you receive when you restake ETH (or an LST) through a protocol like ether.fi or Renzo. It represents your restaked position, earns staking + AVS rewards, and stays liquid — so you can trade it, lend it or use it across DeFi while it keeps earning. Examples: eETH, ezETH, rsETH, pufETH.
LST vs LRT — what’s the difference?
A liquid staking token (LST) like stETH represents staked ETH securing Ethereum, yielding ~3–4%. A liquid restaking token (LRT) takes that a step further: the same ETH is also restaked to secure additional services (AVSs), adding AVS rewards on top — typically 8–12% total — in exchange for extra slashing and complexity. LRTs sit one layer above LSTs and above the base restaking protocols on restaking.ink.
Where does the 8–12% LRT yield come from?
Three layers: base Ethereum staking (~3–4%), plus AVS rewards for the extra services your restaked ETH secures, plus often protocol/points incentives. Yields spike above 15% when AVS demand is high. Remember the extra yield comes with extra risk — it isn’t free.
Are LRTs risky?
Yes — more so than plain staking. On top of slashing and smart-contract risk, LRTs add depeg risk (the token can trade 5–10% below fair value in stress), liquidity risk, and bridge risk. The April 2026 Kelp exploit (a LayerZero adapter, ~$290M) showed how bridge/contract flaws plus large TVL can cascade. Looping LRTs with leverage amplifies both gains and liquidation risk.
Which LRT is the biggest?
ether.fi dominates — its eETH/weETH has represented roughly 65% of all LRTs and over 60% of total restaked value, with the deepest DeFi liquidity. Renzo (ezETH) and Kelp (rsETH) are the main challengers. Figures shift; treat TVL as a dated snapshot.
What is depeg risk?
An LRT should trade close to the value of the ETH backing it. Under stress — mass exits, a hack, or cascading liquidations — it can slip below that "peg". If you must exit during a depeg, the loss becomes real. A 5–10% depeg is not unusual when leveraged loopers get liquidated together.
Can I use LRTs in DeFi?
Yes — that’s the point. LRTs are used as collateral for lending, in looping strategies, in liquidity pools and in structured-yield products. ether.fi’s weETH has the deepest integrations. Just remember that stacking LRTs into leveraged strategies multiplies both the yield and the risk.