🔲LRT² (now King Protocol)
Last updated
Last updated
LRT² (currently rebranding to King Protocol) is the new standard in LRT rewards, significantly simplifying the claiming experience by tokenizing rewards earned when restaking.
As restaking network protocol rewards come online, the multitude of restaking network 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 restaking network protocol 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
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 tokenshttps://docs.eigenfoundation.org/programmatic-incentives/programmatic-incentives-faq
Additional restaking network protocol 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 unwrap the underlying tokens will become available.
What underlaying assets does LRT2 contain? Restaking-related rewards such as restaking network protocol tokens, and other participating restaking and LRT-related protocol 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 restaking network protocols and participating restaking protocols. 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.
