What is Liquid Restaking

What is Restaking

Restaking ETH is the method of using your ETH into staking on both Ethereum and other protocols to increase trust across multiple networks. Staking essentially sets the foundation for cryptoeconomic security on Ethereum, and restaking further solidifies Ethereum's security offerings to various applications on the restaking network. For example, EigenLayer is a protocol on Ethereum that improves cryptoeconomic security, making it easier for new projects to use Ethereum's underlying security.

EigenLayer works like a trust market on Ethereum. It lets projects also known as actively validated services (AVSs) start up with less cost by using Ethereum's strong security. Restaking in EigenLayer lets people who have staked their ETH join in making applications on the network safer and help new projects get started more easily.

Unlike normal staking, EigenLayer's restaking lets users keep participating in the network's cryptoeconomic security over time. Through restaking, EigenLayer incentivizes users to actively adapt and extend cryptoeconomic security to new and emerging applications, creating a more robust ecosystem. This encourages the validation and adoption of AVSs on the Ethereum blockchain.

The approach of restaking open up doors towards benefitting stakers, other networks, and the restaking protocol itself.

What is Liquid Restaking

Liquid Restaking Tokens, or LRTs, are innovative derivatives representing ETH restaking positions. Restakers on EigenLayer can access a form of their position through LRTs, that they can then use in the greater DeFi ecosystem. LRTs have emerged to simplify access to restaking positions, in a way, similar to what LSTs aim to do with ETH staked positions.

LRT providers like ClayStack, share the ultimate goal of offering stakers or restakers an yield bearing liquid representation of their underlying position.

Depending on the protocol, a restaker can interact with an LRT protocol by depositing ETH or LSTs or bothin exchange for a liquid representation of the token (csETH for example). Through acquiring the LRT, stakers will be able to tap into several benefits such as:

  1. EigenLayer points (ETH validators pointing their withdrawal addresses to Eigenpods)

  2. Native points by the LRT protocol

  3. Underlying staking rewards

  4. DeFi yields

Restake with ClayStack

ClayStack is a modular DVT-based liquid restaking protocol on Ethereum, live on mainnet. The core of ClayStack's architecture consists of three modules: Restaking, DVT and MEV. The uniqueness of this architecture lies in the fact that the core protocol is immutable and all the modular elements are upgradable hence strengthening our security and scalability. This architecture translates into making ClayStack independent from any risks or catastrophic events that might occur on EigenLayer.

Users can mint csETH by staking ETH, which not only generates native ETH staking yield but is also natively restaked on Eigenlayer. This allows users to earn uncapped EigenLayer points as well as CLAY points, all while earning the underlying staking rewards. Additionally, users will be able to further participate in DeFi to earn additional yield if they wish to do so.

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