Restaking in the cryptocurrency world is like giving your investments a second wind, enabling your staked assets to work double-time. Unlike traditional staking, where your assets are locked up, liquid restaking platforms offer a way to stake your coins while still maintaining liquidity. This means you can earn staking rewards without giving up the ability to trade or utilize your cryptocurrency. With the emergence of platforms like EtherFi, Swell Network, and others, investors now have robust tools at their disposal to maximize their earnings in a more flexible manner.
What is Liquid Restaking?
Liquid restaking is like giving your ETH a day job, letting it help verify transactions across Ethereum and other hooked-in networks. It’s a smart play, leveraging Ethereum’s beefy security to pump up how much bang you get for your buck across the chain. You’re not just sitting on your coins; you’re putting them to work, bagging extra rewards for helping keep things running smoothly.
Liquid Restaking (LRT) Protocols
EtherFi
EtherFi‘s been around the block and knows how to spice things up. With its eETH token, you’re not just staking; you’re getting into a club with ether.fi loyalty points and scoring some Eigenlayer points as well. Want more bang for your buck? Pair up eETH with platforms like Pendle or Balancer, and boom, you could see your returns doubling or even tripling.
| URL | https://ether.fi |
| Staking Rewards | 3.32% |
| TVL | $1.26B |
| Token | eETH |
| Additional Bonus | ether.fi Loyalty Points, Eigenlayer Points |
| Network(s) | Ethereum |
EtherFi is currently running a promotion where if you stake 0.1 ETH through my link you and I will get 100 points extra. Secure that yield now.
Swell Network
Swell Network has made a name for itself in the liquid staking space, particularly with its Liquid Staking Token (LST), swETH. They’ve recently introduced rswETH, showing their commitment to evolving in the DeFi space. While the Total Value Locked (TVL) in rswETH might still be finding its footing, Swell’s track record lends a reassuring vibe of safety and reliability. For those looking to venture into liquid restaking, Swell Network’s blend of experience and innovation makes it a platform worth watching.
| URL | https://swell.network |
| Staking Rewards | 3.41% |
| TVL | $57.21M |
| Token | rswETH |
| Additional Bonus | Swell Pearls / Rewards, Eigenlayer Points |
| Network(s) | Ethereum |
Puffer Finance
Puffer Finance is mixing things up in the restaking world with a unique, game-like twist. They’re currently inviting users to become part of a “Puffer Family” by linking social media accounts to participate in quests. This playful approach might not hit the mark for those who prefer to keep a low profile or aren’t fans of gamification. However, they’re bringing something fresh to the table with their “puffer flywheel” mechanism. This innovative feature is designed to accelerate Puffer’s growth beyond what’s typical for traditional liquid staking protocols, making it an intriguing option for those looking for a blend of fun and functionality in their crypto ventures.
| URL | https://www.puffer.fi |
| Staking Rewards | 3.3%+ |
| TVL | $964.39M |
| Token | pufETH |
| Additional Bonus | Puffer Points, Eigenlayer Points, Validator Tickets, etc. |
| Network(s) | Ethereum |
Kelp DAO
Kelp DAO emerges from the minds of Amitej G and Dheeraj B, the same visionaries behind Stader Labs, known for its impressive $350M+ in Total Value Locked (TVL) across a multichain liquid staking platform. This time around, they’re diving into the world of Liquid Restaking Solutions, targeting public blockchain networks. Kelp DAO aims to simplify the restaking process, offering an easy path to liquidity for restaked ETH/LST. It’s all about cutting through the clutter to find the best services and validators, while also streamlining the management of rewards that roll in from restaking efforts.
| URL | https://kelpdao.xyz |
| Staking Rewards | ~3.3% |
| TVL | $466.65M |
| Token | rsETH |
| Additional Bonus | Kelp Miles, Eigenlayer Points, Referrals |
| Network(s) | Ethereum |
Renzo
Renzo Protocol streamlines earning higher yields on Ethereum by offering an easy-to-use Liquid Restaking Token (LRT) through the EigenLayer ecosystem. It dishes out ezETH tokens that grow in value from staking rewards, payable in ETH, USDC, and AVS tokens. Minting ezETH is straightforward on their platform, with the only catch being the EigenLayer-based unstaking period which starts at a minimum of seven days, depending on the specific AVS strategy involved.
| URL | https://www.renzoprotocol.com |
| Staking Rewards | 3.49% |
| TVL | $322.67M |
| Token | ezETH |
| Additional Bonus | Renzo ezPoints, Eigenlayer Points |
| Network(s) | Ethereum |
LRT Growth Is Off the Charts
Top 10 Liquid Restaking Tokens
LRT Total Supply has seen exponential growth over the last couple of months with EtherFi taking the lead and Puffer Finance exploding to the upside. This pattern reflects a broader trend in the DeFi space, where innovative mechanisms for earning yields are gaining traction among investors looking for more liquidity and flexibility with their staked assets.
| LRT | Total Supply |
|---|---|
| EtherFi | 35.4% |
| Puffer Finance | 31.2% |
| Kelp Dao | 14.2% |
| Renzo | 9.6% |
| Swell | 1.4% |
Conclusion
Liquid restaking represents a groundbreaking approach in the DeFi sector, offering investors the chance to generate attractive yields of 3-4% while also participating in points accumulation schemes offered by platforms like EtherFi, Swell Network, and others. However, it’s crucial to be aware this concept is very new and there are additional smart contract risks involved. Diversification is key; not all your funds should be allocated to a single platform to mitigate potential risks.
I’d recommend picking one or two of these platforms that resonate most with you and really diving deep. Doubling down on them could be the smart play for maximizing your returns.