One article explains in detail the early, middle and late opportunities of LST, LRT and re-staking tracks.

Author: BITWU.ETH Source: X, @BTW0205

LST, LRT, staking, and re-staking, these concepts can easily confuse people!

I use this article to popularize the relevant concepts as simply as possible. Especially friends who have a lot of ETH, be sure to read it carefully.

When the currency circle really makes money, it must be a heavy bet with low risk and high return. This time is a rare opportunity to make money with relatively low risk. In this case, it can help you double the amount of Ethereum.

Let’s understand the concept first. First of all, we must understand that in fact, whether it is LST or LRT, they are just token models derived from the PoS network and secure sharing mechanisms. To understand these concepts, we must start from the source

1. What is LST (brief analysis):

stETH obtained by users through liquid staking protocols such as Lido

Behind LST: PoS network security, Staking interest

2. What is LRT (brief analysis):

Users entrust lsdETH assets such as stETH to the liquidity re-pledge agreement , the protocol deposits lsdETH into EigenLayer for users and then pledges it to obtain mortgage certificate tokens, that is, LRT assets

3. Behind LRT: safe sharing, safe tax

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1. Security sharing behind Restaking

Restaking (re-pledge) was a concept first proposed by Eigenlayer. As the leading re-pledge protocol of the Ethereum ecosystem

EigenLayer announced on January 10th that it will be a new Add 3 kinds of LST assets, and reopen the existing upper limit of 20 ETH each LST asset for re-pledge on 1 month 29  (If you have ETH remember this time).

Eigenlayer hopes to achieve secure sharing between various types of Rollups, side chains and middleware (DA Layer/Bridge/Oracle, etc.) to further maintain Ethereum. network security.

In layman's terms, it means renting the security layer of ETH to other protocols or chains to achieve the purpose of collecting security taxes. Users only need to pledge lsdETH to With Eigenlayer, you can share the security tax

Security sharing allows blockchains to enhance their own blockchain by sharing the value of another blockchain's verification nodes security. This concept is not the first of its kind by Eigenlayer. Polkadot’s slot solution, Cosmos’ inter-chain secure sharing, and Avalanche’s subnet are all old players in secure sharing.

This concept is actually easy to understand.

For example, a small country that is weak and has just developed does not need to spend large sums of money to build military power. It can introduce the military of other countries to protect itself and give up part of it. Interest, this is a very common strategy in history.

This is the source behind Restaking!

2. LRT: the matryoshka version of LST

The process of an ETH going through LST and LRT:

1 ETH enters the LSD protocol (such as Lido), pledges to obtain lsdETH (such as stETH), and you can enjoy ETH PoS inflation interest, if the LSD protocol has not issued coins yet, there will be airdrop rewards

1 lsdETH passes through the LRD protocol (such as KelpDAO), and the LRD protocol will help you transfer lsdETH again Staking into Eigenlayer will give you 1 lrtETH. You can currently enjoy the airdrop rewards of Eigenlayer, plus the airdrop rewards of the LRD protocol

The fundamental thing is that in the original PoS Staking has once again added secure sharing, plus token airdrops based on protocols and sub-protocols derived from these two categories of tracks. The general principle is that simple.

This is indeed a super bonus for ETH holders

Pledge ETH to get LST, pledge LST for the second time to get LRT, which can be used for financial operations such as pledging, lending, etc. again. Every additional pledge is an additional opportunity to use liquidity to earn profits.

Of course, the reason why Eigenlayer is so popular right now is because the market expects Eigenlayer to be a super project and a super big deal.

3. Opportunities to participate in Restaking

Early stage: time and funds

The current opportunity is to play with the protocol nesting dolls derived from Eigenlayer, and try your best to win the airdrops of Eigenlayer and LRD protocols. .

What matters is time and the amount of funds. For example, Eigenlayer’s first round of pledgers have already felt comfortable. Now Eigenlayer’s market expectations have increased significantly, and the funding game has increased. Level, you can only fight for funds.

Mid-term stage: Screen out the leaders and then pledge the "Lido" of the track

The relevant protocols based on Eigenlayer are still in the initial stage. In the end, one or two will definitely take over the market. It depends on which protocol can continue to maintain growth and widen the absolute gap with the second and third. The basic faucet can be determined.

Currently, because Eigenlayer is full and has to wait until the 29th, there are other projects where Eigenlayer has a chance to receive airdrops by staking the track. I have personally participated in these: @ether_fi, @swellnetworkio, @KelpDAO, @alt_layer

None of the above projects have issued coins. They all have their own advantages. Everyone can make their own judgment. Don’t let this trend go. Just miss it!

Late stage: spreading to other chains

Investment, what is invested? It is more about investing in future development trends.

Theoretically, as long as it is L1, it can launch a project similar to Eigenlayer. For example, BTC, SOL, AVAX, and BSC can all be promoted and speculated again. So where are the opportunities?

BTC is a bit special.

Other chains may be based on the concept of friction, but BTC is different. BTC has the highest security level. In theory, BTC is more suitable for this than ETH, that is, Share your own security value, and the security value of BTC is higher than ETH.

Currently, all I know about the BTC safe sharing project is @babylon_chain. You can pay attention. The mode mechanism is very different from Eigenlayer. One is sharing. ETH security, one is shared BTC security, may become another big opportunity after Eigenlayer.