What is Liquid Restaking?
Liquid restaking is the evolution of ETH staking. Instead of just earning ~4% APY from Ethereum validation, you can "restake" that staked ETH to secure additional protocols (called AVSs) through EigenLayer—earning extra rewards from each protocol you help secure.
The "liquid" part is crucial: rather than locking ETH directly in EigenLayer (which is illiquid), you deposit through protocols like ether.fi or Renzo and receive a tradeable LRT token. This token represents your staked position but can be used in DeFi—as collateral, for liquidity provision, or to sell anytime.
Base yield from Ethereum validation
AVS restaking rewards + EIGEN points
Protocol-specific points (ether.fi, Renzo, etc.)
Use LRT in lending, liquidity, leverage
The LRT Yield Stack Explained
Understanding the yield stack helps you optimize returns. Each layer adds complexity but also opportunity. Let's break down exactly where your yield comes from.
Base ETH Staking Yield
Your ETH earns ~4% APY from validating Ethereum blocks. This is the foundation—you'll get this yield regardless of what else you do. Most LRT protocols use liquid staking tokens (stETH, etc.) under the hood, so this yield auto-compounds.
EigenLayer Restaking
EigenLayer lets protocols (AVSs) use your staked ETH for additional security. In return, you earn:
- EIGEN Points: EigenLayer's native points program, converted to EIGEN tokens at TGE
- AVS Rewards: Individual protocols pay for security in their native tokens
LRT Protocol Points
Each LRT protocol has its own point system on top of EigenLayer. These points convert to protocol tokens at their respective TGEs. The competition between protocols means aggressive point incentives:
ether.fi Points
1 point per ETH per day. Already had TGE—future seasons for additional allocation.
Renzo ezPoints
Hourly accrual based on TVL. Multipliers for early deposits and referrals.
Kelp Miles
Accepts multiple LSTs. Bonus for using partner protocols.
Puffer Points
3x point multiplier—highest boost but smaller TVL.
LRT Protocol Comparison
ether.fi (eETH)
Best for: Largest and most liquid LRT. ETHFI token already live with staking. Deep DeFi integrations across all major protocols.
Renzo (ezETH)
Best for: Multi-chain expansion with ezETH on L2s. Strong point multipliers and aggressive growth strategy. Good for airdrop hunters.
Kelp DAO (rsETH)
Best for: Accepts multiple LSTs (stETH, ETHx, sfrxETH). Backed by Stader Labs. Good for diversifying across LST providers.
Puffer (pufETH)
Best for: Highest point multiplier (3x). Native anti-slashing technology. Good for aggressive point farmers willing to take more risk.
Point Farming Strategies
Pendle Point Trading
Pendle separates yield from principal. Buy YT (yield tokens) to get leveraged point exposure without holding the underlying LRT. Can achieve 5-10x point efficiency on capital deployed.
Leverage Looping
Deposit LRT as collateral on Aave/Morpho, borrow ETH, convert to more LRT, repeat. 2-3x leverage on points with borrowing costs. Risk: liquidation if LRT depegs.
LP Stacking
Provide liquidity in LRT pools (Curve, Balancer). Earn trading fees + LP incentives + still accumulate underlying points. Extra points from protocols incentivizing liquidity.
Multi-Protocol Diversification
Split allocation across ether.fi, Renzo, Kelp. Each protocol may have different airdrop timing and valuation. Reduces single-protocol risk while capturing multiple airdrops.
Advanced Yield Strategies
The "Points Maxi" Strategy
Leverage Warning
Leverage strategies amplify both gains and losses. LRT depegs (trading below NAV) can trigger liquidations. In March 2024, ezETH temporarily depegged 20%, liquidating leveraged positions. Only use leverage you can afford to lose.
Risks and Considerations
Critical Risks to Understand
Smart Contract Risk (Multiple Layers)
LRTs involve: the LRT protocol + EigenLayer + underlying LST + AVS protocols. Each layer adds smart contract risk. One exploit can cascade through the stack.
Slashing Risk
AVS operators can be slashed for misbehavior. Your restaked ETH is at risk. LRT protocols have varying levels of slashing protection.
Depeg Risk
LRTs should trade at NAV but can depeg during stress. Limited liquidity for redemptions means you might have to sell at a discount.
Point Dilution
As more capital enters, your share of total points decreases. Late entrants get diluted. Calculate expected allocation based on current TVL.
Interactive LRT Dashboard
Use this tool to compare LRT protocols, calculate projected yields, and understand the point farming opportunity across different protocols.
Supported Assets
Yield Estimator
The LRT Yield Stack
Related Articles
Frequently Asked Questions
LRTs are tokens that represent staked ETH deposited into EigenLayer through intermediary protocols like ether.fi or Renzo. They let you earn ETH staking yield + EigenLayer restaking rewards + protocol points, all while maintaining liquidity to use in DeFi.
Staking locks ETH to secure Ethereum (~4% APY). Restaking uses that staked ETH to also secure other protocols via EigenLayer (additional yield + points). Liquid restaking gives you a tradeable token (LRT) representing your restaked position, so you can use it in DeFi while earning all yields.
ether.fi (eETH) leads with over $6B TVL, followed by Renzo (ezETH) at ~$3B, Kelp DAO (rsETH) at ~$1.8B, and Puffer (pufETH) at ~$1.5B. TVL fluctuates based on point incentives and airdrop expectations.
Key risks include: smart contract exploits in LRT protocols, slashing risk from AVS operators, depeg risk if LRTs trade below NAV, liquidity risk in stress scenarios, and the complexity of multiple protocol layers. Always diversify across protocols.
Stack points by: depositing early in new seasons, using Pendle to buy discounted points, providing LRT liquidity on DEXs, leveraging LRTs as collateral on lending protocols, and holding protocol NFTs for multipliers. Monitor total points supply to estimate your share.