Glossary · L
LRT (Liquid Restaking Token)
A token received when restaking liquid staking tokens (like stETH) through a restaking protocol like EigenLayer, EtherFi, or Renzo. Also searched as restaked LST or liquid restaked token. LRTs earn ETH staking rewards plus AVS restaking rewards, with extra slashing risk beyond ordinary liquid staking. Examples: eETH, ezETH, pzETH.
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How LRT works in practice
A liquid restaking token represents restaked ETH, keeping it liquid the way an LST does for plain staking. It stacks two layers of abstraction over the underlying stake, and two layers of risk with it.
Worked example
Deposit ETH, receive an LRT. The underlying is staked and restaked to secure additional services, earning both reward streams. The LRT can then be used as collateral elsewhere — a third layer.
Figures are illustrative and chosen to be checkable, not live market data.
The mistake that costs people money
Each layer adds contract risk and slashing exposure, and the deepest layers are the newest. An LRT used as collateral in a lending market carries risk from the LRT, the restaking layer, the staking layer and the lending market at once.
LRT: common questions
- What is LRT?
- A token received when restaking liquid staking tokens (like stETH) through a restaking protocol like EigenLayer, EtherFi, or Renzo. Also searched as restaked LST or liquid restaked token. LRTs earn ETH staking rewards plus AVS restaking rewards, with extra slashing risk beyond ordinary liquid staking. Examples: eETH, ezETH, pzETH.
- How does LRT work in practice?
- A liquid restaking token represents restaked ETH, keeping it liquid the way an LST does for plain staking. It stacks two layers of abstraction over the underlying stake, and two layers of risk with it.
- Can you give an example of LRT?
- Deposit ETH, receive an LRT. The underlying is staked and restaked to secure additional services, earning both reward streams. The LRT can then be used as collateral elsewhere — a third layer.
- What do people get wrong about LRT?
- Each layer adds contract risk and slashing exposure, and the deepest layers are the newest. An LRT used as collateral in a lending market carries risk from the LRT, the restaking layer, the staking layer and the lending market at once.
- Where can I learn more about LRT?
- Our full guide, What Is Restaking / EigenLayer?, covers LRT in depth with worked scenarios and the risks involved. This glossary entry is the short definition.