Modular Infrastructure for Liquid Restaking

Restaking is a mechanism in DeFi (decentralized finance) that allows users to maximize the utility of their assets by delegating them across multiple networks and services. By doing so, an ecosystem is created where restakers earn rewards on their position while validation services gain security capabilities.

Restaking works by leveraging different asset types, such as Staking derivatives (Liquid Staking Tokens - LSTs), and extending their usability across additional validation services without compromising their initial position. User lock their assets into restaking protocols, which utilize these assets to delegate economic security, liquidity, and DeFi functionality while offering reward opportunities.

Benefits:

• Enhanced Rewards: Restaking allows users to earn additional rewards on top of their staking returns.
• Blockchain Security: Restaking strengthens the blockchain ecosystem by aligning incentives and increasing collaterals in protocols.

Risks:

• Slashing Risks: Misbehavior from underlying participants can lead to penalties or loss of restaked assets.
• Smart Contract Vulnerabilities: Engaging in multiple protocols or features increase exposure to smart contract risks.

Restaking contributes to blockchain security by enabling assets to be used to provide validation capabilities for networks or services. Restaking protocols extend the assets functionality to secure other blockchains or decentralized applications, creating an interconnected ecosystem for delegated economic security. By increasing the collateral pool, restaking reduces vulnerabilities and bolsters trust in public blockchain infrastructure.

• What is Native Restaking?

Native Restaking allows for users to Restake native assets from a specific network. For example, restaking ETH is considered Native Restaking while Restaking stETH (Lido’s Staking derivative) is not.

• What is Isolated Restaking?

Isolated Restaking enable control and reduce counterparty risk by isolating specific asset types. This means every asset you restake is assigned to a dedicated vault.

Liquid restaking leverages Liquid Restaking Tokens (LRTs), which represent restaked assets and maintain their liquidity. Users can use these tokens to participate in restaking protocols while still earning rewards from the original restaking position. The dual-layered dynamic maximizes the utility of the underlying asset, making liquid restaking a preferred choice for DeFi participants.

• How does EigenLayer work?

EigenLayer allows restakers to restake their assets to secure additional applications or services, creating an ecosystem of shared security. By pooling assets across multiple layers, EigenLayer enhances economic security and incentivizes participation with additional rewards.

• How does Symbiotic work?

Symbiotic optimizes restaking by providing users with customizable vaults and a flexible framework. These vaults enable users to restake their assets across different protocols, maximizing yield while ensuring security. Symbiotic’s approach simplifies complex restaking processes, making it accessible to both new and experienced DeFi participants.

Staking derivatives, such as Liquid Staking Tokens (LSTs), and Wrapped Bitcoin (WBTC) bring versatile asset types to restaking. Such types and many theres, allow users to participate in restaking protocols without locking up their capital, offering flexibility and maximizing DeFi reward potential. Restaking platforms like InceptionLRT are designed to fully integrate these types of assets, enabling users to unlock their full earning potential.

InceptionLRT redefines restaking by offering flexibility, security, and scalability. Its integration with leading protocols like EigenLayer and Symbiotic allows users to choose customized strategies, chains, and assets to optimize their restaking journey. With innovative features like MetaLRTs and Multi-curated vaults, InceptionLRT stands out as the platform for advanced and comprehensive restaking solutions.