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It contains the code of wealth, it is recommended to collect it and study it carefully!
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$ALT You deserve it. The concept of Restaked Rollup LRT is the hottest booster recently. Although ALT is not the absolute king, it is a wise choice to go online at this stage, and the price of the coin will not be bad!
LST, LRT, staking, and re-staking, these concepts can easily confuse people! Through this article, I will popularize these concepts to everyone in a simple way, especially for those who hold a large amount of ETH, be sure to read it carefully.
The time to really make money in the cryptocurrency world is to bet heavily with low risk and high returns. This is a rare opportunity to double the amount of Ethereum with relatively low risk.
In order to better understand, we need to understand some concepts first. Whether it is LST, LRT or other tokens, they are actually just some derivatives based on the proof-of-stake network and security sharing mechanism. If we want to understand these concepts, we need to start from the most basic place.
1. Simple explanation of LST:
LST is a stETH token earned by using a liquidity staking protocol such as Lido.
Behind LST is the security mechanism based on the Proof of Stake network and the interest generated by Staking.
2. Simple explanation of LRT:
LRT is an asset that represents users entrusting assets such as stETH to the liquidity re-pledge protocol. Users deposit stETH into EigenLayer for re-pledge and eventually obtain the pledge certificate token, i.e., LRT asset. This process helps users participate in staking and obtain corresponding equity certificates.
3. Behind LRT: Safety Sharing, Safety Tax
1. Security sharing behind restaking
Restaking is a concept first proposed by Eigenlayer, which is the leading restaking protocol in the Ethereum ecosystem.
EigenLayer announced on January 10 that it will add three new LST assets, and on January 29, it will reopen the existing upper limit of 200,000 ETH per LST asset for re-staking (if you have ETH, remember this time).
Eigenlayer hopes to achieve security sharing among various Rollups, side chains and middleware (DA Layer/bridge/oracle, etc.), thereby further maintaining Ethereum’s network security.
In simple terms, it is to rent ETH's security layer to other protocols or chains to achieve the purpose of collecting security taxes. Users can share the security tax by simply staking lsdETH to Eigenlayer. Security sharing allows blockchains to enhance the security of their own blockchains by sharing the value of another blockchain's verification nodes.
This concept is not the first of its kind by Eigenlayer. Polkadot’s slot solution, Cosmos’ inter-chain security sharing, and Avalanche’s subnet are all veteran players in security sharing.
This concept is actually very easy to understand
For example, a weak and newly developed small country does not need to spend a lot of money to build up its military strength. It can introduce foreign military forces to protect itself and give up some of its interests. This is a very common strategy in history. This is the source behind Restaking!
2. LRT: the nesting doll version of LST
The process of an ETH going through LST and LRT:
1 ETH enters the LSD protocol (such as Lido), and pledges to obtain lsdETH (such as stETH). You can enjoy ETH PoS inflation interest. If the LSD protocol has not yet issued a coin, there will be airdrop rewards.
1 lsdETH is pledged to Eigenlayer through the LRD protocol (such as KelpDAO) and the LRD protocol will give you 1 lrtETH. You can currently enjoy the airdrop rewards of Eigenlayer and the airdrop rewards of the LRD protocol.
At its core, it is to add security sharing to the original PoS Staking, plus the token airdrops of protocols and sub-protocols derived from these two major tracks. The general principle is so simple. This is indeed a super bonus for ETH holders.
Stake ETH to get LST, and pledge LST a second time to get LRT. LRT can be used for financial operations such as staking, lending, etc. Every additional staking provides an additional opportunity to use liquidity to gain profits.
Of course, the reason why it is so popular now is because of the market's expectations for Eigenlayer, believing that it will be a super project and a super big deal.
3. Opportunities to participate in Restaking
The early stages: time and money
The current opportunity is to play the protocol nesting dolls derived from Eigenlayer, and try to get the Eigenlayer airdrop and the LRD protocol airdrop.
What matters is the timing and the amount of funds. For example, the first round of Eigenlayer pledgers are already very happy. Now the market expectations for Eigenlayer have increased greatly, and the capital game has reached several levels, so it’s now a matter of funds.
Mid-term stage: Screen out the leaders and then pledge the "Lido" of the track
At present, the relevant protocols based on Eigenlayer are still in the initial stage. In the end, there will definitely be one or two companies that dominate the market. It depends on which protocol can maintain continuous growth and create an absolute gap with the second and third. The basic leader will be determined. At present, Eigenlayer is full and we have to wait until the 29th.
Final stage: Spread to other chains
What are we investing in? We are investing in future development trends.
Theoretically, as long as it is L1, a project similar to Eigenlayer can be launched. For example, BTC, SOL, AVAX, and BSC can all go through the process and be hyped again, so where are the opportunities?
Among them, BTC is a bit special.
Other chains may be copying the concept, but BTC is different. BTC has the highest security level. In theory, BTC is more suitable for this than ETH, that is, sharing its own security value. The security value of BTC is higher than that of ETH.
Tips: Risks of re-staking:
ETH must be staked (or LST must be staked so the token is not liquid)
EigenLayer’s Smart Contract Risks
Agreement-specific reduction conditions
Liquidity Risk
Concentration Risk
Finally, here is a great wealth code! From now on, the expected return will be 50% to more than 2 times by the end of the month! The location is on Binance, and the number of places is limited to 10 people! Each person starts at $1,000! Capital guaranteed!
Public account: Chenxi web3 Vision#LRT #LST #rollup #BTC #Ethereum；
