🔲LRT²
About LRT²
LRT² is the new standard in LRT rewards, significantly simplifying the claiming experience by tokenizing rewards earned when restaking.
As AVS rewards come online, the multitude of AVS protocols emitting rewards will mean a multitude of tokens to distribute. AVSs can distribute those in any ERC20 token, however, most of stakers will receive small, fractional amounts. For many, these can be more trouble than they’re worth to claim or trade in swap pools, leading to a frustrating experience for stakers, and low token utilization for AVSs.
LRT² (read as LRT Squared) is a unified restaking rewards protocol. Its vault holds the rewards tokens as underlying assets. Through LRT², LRT projects can pool AVS rewards into this single vault and issue vault share tokens to their stakers (or distributor contract). This system cuts transaction costs and streamlines the rewards process, great for those with smaller stakes who might find it easier to manage and trade their shares collectively. Larger stakeholders can redeem and possibly arbitrage, which will drive the market price of LRT² token.
You can read more about LRT² and it's benefits in the protocol's documentation here: https://lrt2.gitbook.io/lrt2/docs/whitepaper
How ether.fi will use LRT²
Starting October 15, eETH/weETH holders will earn their first batch of restaking rewards in the form of LRT² tokens. Rewards are planned to be paid out every Thursday as a linear distribution. Users will automatically accrue LRT² by holding weETH or eETH
LRT² represents a share of the restaking reward pool earned by LRT protocols, that is fully backed by and redeemable for the underlying reward tokens, including $EIGEN https://docs.eigenfoundation.org/programmatic-incentives/programmatic-incentives-faq
Additional AVS rewards will be added over the coming weeks as we work to bring exclusive perks and campaigns to our community through the joint partnerships formed within our AVS ecosystem
All eETH will be treated the same when accruing restaking yield, whether it is self-custodied or actively utilized within a DeFi partner protocol. Rewards will be given on a linear distribution. By holding weETH or eETH you will automatically accrue LRT²
To celebrate the launch of LRT², we will be adding additional ETHFI rewards to the pool for all participating ether.fi stakers to share
Users will be able to claim their rewards by navigating to their Portfolio page and opening the LRT² rewards tab. An option to redeem the underlying tokens will become available, enabling access to $EIGEN and other AVS tokens.
LRT² FAQs
What underlaying assets does LRT2 contain? Restaking-related rewards such as AVS protocol tokens, and programmatic incentive EIGEN. It may also contain participating LRT-related tokens.
What are the LRT² tokenomics? Governance plans have not been released by the protocol just yet. For more info on the LRT² protocol, read here: https://lrt2.gitbook.io/lrt2/docs/whitepaper
How will LRT² work in relation to leveraged Aave positions, YT pendle, etc...? Same as loyalty points, Aave would earn on the weETH supply side, YT Pendle would earn based on the weETH representation. More ETH staked = more LRT². 1 ETH = 1 ETH, regardless of leverage. Everything related to LRT² will be accruing at 1x rewards, we will not distribute restaking rewards unevenly.
How will the claim process work?
LRT² rewards will coincide with payout of tokens from AVS's and EigenLayer. This is scheduled as a weekly snapshot with LRT² tokens available to claim.
Will LRT² take into account DeFi positions as well?
Yes. Staked ETH earns LRT² in all supported DeFi positions that are being tracked. Same as eETH/weETH.
When LRT² reward will finally come live, will all holders of weETH, weETHs and weETHk start earning LRT² rewards at the same time? LRT² will start with weETH and eEIGEN only, but will expand to others going forward.
Do you have any idea of how much EIGEN rewards will be available to claim when LRT² will be available?
| Total EIGEN for restaking | 4% (distributed over 12 mos) |
|---|---|
Eigen projected FDV | 6,000,000,000 |
ether.fi EigenLayer share | 35% |
ether.fi EigenLayer rewards | 84,000,000 |
Last updated
