The concept of restaking has expanded beyond the Ethereum ecosystem, introducing new opportunities for users to optimize returns while contributing to network security. By building upon liquid staking derivatives (LSTs), the sector has evolved to include liquidity restaking tokens (LRTs), creating layered yield opportunities across multiple blockchain ecosystems.
At its core, LRTs function as restaking certificates. Users stake ETH to receive LSTs, representing proof of their initial stake. These LSTs can then be restaked to generate LRTs, creating additional layers of liquidity while the original asset remains ETH throughout the process. This layered approach enables participants to engage in various financial activities, including further restaking and lending operations.
As the restaking narrative gains momentum, several LRT-related tokens have demonstrated significant growth. Beyond established players like Restake Finance ($RSTK) and KelpDAO, numerous projects are emerging across different blockchain ecosystems, offering innovative approaches to restaking technology.
Understanding Restaking Fundamentals
Restaking represents a sophisticated approach to cryptocurrency staking that enables asset reuse across multiple security layers. Participants can stake their assets through liquid staking protocols to receive liquid staking tokens, which can then be restaked to generate additional yield opportunities.
The process begins with users staking their native assets—typically ETH or other proof-of-stake tokens—through liquid staking protocols. These protocols issue liquid staking tokens that represent the staked assets while maintaining liquidity. The innovation comes when these LSTs become eligible for restaking, creating a new layer of derivative tokens that can be used across decentralized finance applications.
This multi-layered approach provides several advantages. It enhances capital efficiency by allowing users to maintain exposure to their staked assets while accessing additional yield opportunities. The system also contributes to network security by creating additional economic layers that support various blockchain services and applications.
Babylon: Bitcoin Restaking Innovation
Babylon has emerged as a pioneering Bitcoin staking protocol, recently securing $18 million in funding led by Polychain Capital and Hack VC. The platform enables Bitcoin holders to utilize their assets as security for proof-of-stake blockchains, expanding Bitcoin's utility beyond its traditional store-of-value function.
The protocol employs advanced cryptographic techniques and consensus protocol innovations to overcome Bitcoin's lack of smart contract functionality. Through its remote staking approach, Babylon allows Bitcoin holders to stake their assets without bridging them to proof-of-stake chains, maintaining custody while providing complete slashing security guarantees.
A crucial component of Babylon's architecture is its BTC timestamp protocol. This innovative solution timestamps events from other blockchains onto the Bitcoin network, allowing these events to benefit from Bitcoin's security as a timestamp server. The protocol enables fast stake unbonding, composable trust, and reduced security costs while maximizing liquidity for Bitcoin holders.
The platform has already integrated with 39 chains during its testnet phase and is preparing to introduce scalable restaking capabilities. With plans to launch its mainnet before Bitcoin's next halving event, Babylon represents a significant step toward making Bitcoin a productive asset while maintaining its security properties.
LiNEAR Protocol: NEAR Ecosystem Restaking
LiNEAR Protocol has established itself as a leading liquid staking solution within the NEAR ecosystem, offering competitive yields currently at 8.35% APY. The protocol automatically monitors and adjusts validator delegations to maintain consistent returns for participants while ensuring network security.
The platform's restaking mechanism involves three primary tokens: $NEAR, $LiNEAR, and $bLiNEAR. Users stake $NEAR to receive $LiNEAR tokens, which can be utilized across various DeFi protocols within the NEAR and Aurora ecosystems. For additional yield opportunities, users can restake their positions to receive $bLiNEAR tokens, representing restaked $NEAR positions.
A significant advantage of $bLiNEAR tokens is their rapid convertibility back to $NEAR, eliminating typical unbonding periods and delays. The protocol also introduces a governance token, $LNR, which allows holders to participate in protocol decisions and benefit from revenue sharing. Users can stake $LNR to receive $sLNR tokens, representing their share in the insurance fund and granting governance rights.
The protocol is currently preparing an airdrop campaign for early adopters, rewarding both $LiNEAR users and early $bLiNEAR participants. The allocation amount correlates with how early users lock their $NEAR, creating incentives for early adoption and protocol participation.
Picasso Network: Cross-Chain Restaking Solutions
Picasso Network focuses on enabling interoperability between multiple Layer 1 blockchains, including Polkadot, Kusama, and Cosmos ecosystems, with expansion plans for Ethereum and Solana. The project has identified opportunities in Solana's restaking landscape and is developing solutions to address this emerging market.
The platform recently introduced liquid staking tokens for Polkadot ($DOT) with its $lsDOT token, designed specifically for restaking applications. Picasso's approach involves creating a Restaking Vault system similar to EigenLayer's model but tailored for the Solana ecosystem.
Through Picasso's Solana-IBC connectivity, the protocol provides validator services that accept various Solana liquid staking tokens, including mSOL, jSOL, Orca LP positions, and bSOL. Users can restake these tokens to help secure the network while earning additional yield opportunities.
The opportunity appears substantial given Solana's current staking dynamics. Approximately 8% of SOL remains unstaked, representing significant potential for both liquid staking and restaking protocols. As the restaking narrative develops, market attention may shift toward Solana-based solutions offering similar yield enhancement opportunities.
Layerless: Omnichain Restaking Protocol
Layerless represents an innovative approach to restaking by incorporating omnichain functionality through EigenLayer and LayerZero integration. The protocol enables users to create Omnichain Restaked Tokens (ORTs) that maintain liquidity and composability across multiple blockchain networks.
When users deposit LSTs such as stETH, cbETH, or rETH into EigenLayer through Layerless, they receive ORT tokens representing their EigenLayer positions. These tokens utilize LayerZero's OFT (Omnichain Fungible Token) standard, making them accessible across numerous blockchain networks beyond Ethereum.
The protocol opens new possibilities for EigenLayer restaking tokens across Layer 2 solutions including Arbitrum, Optimism, Base, Metis, zkSync, and Linea. By enabling cross-chain functionality, Layerless expands the utility of restaked assets while maintaining their security properties and yield generation capabilities.
With its testnet launch scheduled for the first quarter, Layerless aims to demonstrate the practical applications of omnichain restaking and its potential to create more connected and efficient DeFi ecosystems across multiple blockchain networks.
Polygon 2.0: Enshrined Restaking Approach
Polygon 2.0 introduces a novel concept called "enshrined restaking" through its upgraded POL token system. The new architecture allows POL holders to stake their tokens in a staking hub and subsequently restake them to validate multiple chains within the Polygon ecosystem.
POL represents a significant technical upgrade from MATIC, designed to power Polygon's vision of becoming the value layer of the internet. The token enables validators to secure multiple chains and perform various roles while earning multiple reward streams from their staked capital.
Validators participating in Polygon's restaking system can earn rewards through three primary mechanisms: protocol rewards from POL emissions, transaction fees from validated chains, and additional rewards from individual chains seeking to attract more validators. The system also expands the validation concept to include multiple roles such as transaction validation, zero-knowledge proof generation, and participation in data availability committees.
The migration from MATIC to POL will occur through an upgrade smart contract that exchanges MATIC for POL at a 1:1 ratio. The community will have an extended period, potentially four years or more, to complete the migration process once the proposal receives community approval.
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Frequently Asked Questions
What is the difference between liquid staking and restaking?
Liquid staking involves staking native tokens to receive liquid representations that maintain liquidity. Restaking takes this concept further by allowing these liquid tokens to be staked again, creating additional yield opportunities while maintaining exposure to the original assets. This creates layered yield opportunities without requiring additional capital commitment.
How does restaking enhance capital efficiency?
Restaking improves capital efficiency by enabling users to generate multiple yield streams from a single asset commitment. Instead of having assets sit idle after initial staking, users can层层利用他们的质押位置通过restaking机制，在不增加风险暴露的情况下创造额外回报机会。这种方法最大化了资产效用同时保持流动性。
What risks are associated with restaking protocols?
Restaking introduces additional smart contract risks and potential slashing conditions across multiple protocols. Users should carefully evaluate the security audits, insurance mechanisms, and governance structures of restaking platforms. The complexity of layered staking also requires understanding how different protocols interact and potential points of failure.
Can restaking tokens be used in DeFi applications?
Yes, most restaking tokens are designed specifically for compatibility with decentralized finance applications. These tokens can typically be used as collateral for lending, provided as liquidity in trading pools, or incorporated into various yield strategies. Their composability makes them valuable building blocks within the broader DeFi ecosystem.
How do rewards accumulate through multiple staking layers?
Rewards accumulate through a combination of base staking rewards, protocol incentives, and additional yield opportunities from DeFi applications. Each staking layer typically provides its own reward structure, creating a compounded yield effect. However, users should consider that each layer may also deduct fees or require token conversions that impact overall returns.
What factors should users consider when choosing restaking protocols?
Users should evaluate protocol security, transparency of operations, quality of integrations, fee structures, and the underlying assets supported. Additionally, the track record of the development team, community governance mechanisms, and insurance provisions should inform decision-making. Understanding the specific mechanics of how each protocol handles slashing and liquidation events is equally important.