LRT
A Liquid Restaking Token represents a restaked asset while keeping it transferable and usable across DeFi.
LRT stands for Liquid Restaking Token. It is a token issued by a liquid restaking protocol to represent assets that have been restaked, such as staked ETH or liquid staking tokens. Restaking lets the same underlying crypto help secure additional networks, services, or protocols, while the LRT acts like a receipt that can be held, transferred, or used elsewhere. This differs from traditional staking, where assets may be locked and less accessible.
LRTs matter because they can make restaked capital more flexible. A user might deposit staked ETH into a restaking protocol and receive an LRT in return, then use that LRT in DeFi for lending, liquidity provision, or collateral, depending on what other protocols support. For example, an LRT is similar in purpose to a liquid staking token such as stETH, but it represents exposure to restaking rather than only basic staking. LRTs can carry extra risks, including smart contract risk, slashing risk, and dependence on the restaking protocol’s design.
Other terms in DeFi
AMM
An automated market maker is a DeFi protocol that uses liquidity pools and algorithms to price and swap crypto assets without a traditional order book.
Aggregator
A DeFi service that searches multiple protocols to find better prices, routes, or yields for a user’s transaction.
DEX
A decentralized exchange is a crypto marketplace where users trade directly from their wallets using smart contracts instead of a central intermediary.
DeFi
A blockchain-based financial ecosystem that lets people lend, borrow, trade, and earn yield without traditional banks or brokers.