Restaking & Liquid Restaking Key Terms

Some key terms relating to Restaking & Liquid Restaking include:

  • Restaking: The process of reusing staked ETH to provide security for multiple protocols, enabling additional yield while maintaining Ethereum’s cryptoeconomic security.
  • Actively Validated Service (AVS): A protocol or application that requires additional security beyond Ethereum’s base layer. AVSs rely on restakers to validate transactions or enforce cryptoeconomic guarantees. (Equivalent concepts exist in other ecosystems, such as Babylon for Bitcoin).
  • Restaking Marketplace: An open market where AVSs offer yield to attract security and restakers delegate to validators/operators based on risk vs. reward incentives.
  • Liquid Restaking Token (LRT): A tokenized receipt representing restaked ETH, allowing holders to access DeFi opportunities while still earning restaking rewards.

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