Isolated Liquid Restaking

Isolated Liquid Restaking allows users to make use of specific Liquid Staking Tokens (LSTs) as collateral in dedicated vaults, which are tailored to the token's unique characteristics and designed to maximize individual investment outcomes.

Functionality

Isolated Liquid Restaking is distinguished by a targeted approach to asset management.

  1. Dedicated Vault Instances: For each supported LST, a dedicated Inception vault is generated, enabling specialized management strategies that are tailored to the token's specific characteristics and market dynamics.

  2. Restaking with Individual Risk: Users deposit their preferred LST into the corresponding vault, where it is restaked through our protocol to earn rewards, increase liquidity, and participate in DeFi activities under specific conditions.

  3. Issuance of Isolated LRTs: Upon deposit, users receive an Isolated Liquid Restaking Token (iLRT) corresponding to each one of their deposited LSTs.

Supported LSTs and Corresponding iLRTs

InceptionLRT v2 supports a wide range of LSTs, each combined with a unique iLRT to create diverse investment pathways:

  • ankrETH -> inankrETH

  • cbETH -> incbETH

  • ETHx -> inETHx

  • lsETH -> inlsETH

  • mETH -> inmETH

  • oETH -> inoETH

  • osETH -> inosETH

  • rETH -> inrETH

  • sfrxETH -> insfrxETH

  • sthETH -> instETH

  • swETH -> inswETH

  • wBETH -> inwbETH

Each pairing is rigorously designed to guarantee that the iLRT retains the original LST's economic and functional characteristics, allowing customers to keep tailored risk profiles and investment strategies while benefiting from increased liquidity and potential yields.

iLRTs Benefits for Users

  • Increased liquidity and flexibility for Restaked LSTs through iLRTs

  • Potential for higher yields through staking rewards and yield farming in Defi multiple iLRTs

  • Reduced risk exposure compared to basket-based LRTs

  • Enhanced transparency and auditability of asset positions and protocol operations

Rewards

  • inLRTs are reward-bearing tokens

  • The underlying staking positions earn rewards which are reflected in the price of an LST

  • Rewards are expected in ETH, USDC and Actively Validated (AVSs) reward tokens

  • This means the value of the Liquid Restaked Token increases relative to the underlying LSTs as it earns more rewards in AVS token

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