Native Liquid Restaking
Native Liquid Restaking in InceptionLRT enables Ethereum holders to leverage their staked assets across different networks, increasing the capital efficiency and reward potential of their positions. This feature is part of the protocol's purpose to increase the usefulness and functionality of ETH by allowing it to provide network security and participate in various DeFi applications.
Functionality
Native liquid restaking on InceptionLRT uses a simple technique that allows stakers to reroute their withdrawal credentials to InceptionLRT's smart contracts. This step essentially delegates the staking power of their ETH to the Inception protocol without removing the assets from their original staking arrangement. Here's how it works:
Staking: Users stake their ETH via the InceptionLRT interface, which connects to Ethereum's native staking protocols.
Credential Redirection: Rather than locking up staked ETH in a particular use case, the protocol redirects the staking credentials, allowing the staked ETH to be used to secure the Ethereum mainnet while also engaging in other validated services (AVS) via EigenLayer.
Restaking Benefits: This redirection ensures that staked ETH remains productive in many venues without the need to physically unstake or relocate assets, preserving security and liquidity.
inETH: inception’s Native Liquid Restaking Token
inETH, previously known as genETH under InceptionLRT, is InceptionLRT v2's native liquid restaking token. This token reflects a user's staked ETH on the network, allowing for flexible participation in a variety of DeFi activity without having to unstake or transfer the underlying assets.
Features:
Token Representation: inETH mirrors the value of the underlying staked ETH, giving holders a tradable asset that reflects their staking contributions and accrued rewards.
Utility in DeFi: inETH can be used across the InceptionLRT ecosystem and beyond, including lending, borrowing, and other DeFi protocol use cases, hence increasing its utility and possible incentives for holders.
Liquidity and Accessibility: In contrast to traditionally staked ETH, inETH holders benefit from increased liquidity because it can be moved and traded more freely across supported dapps and exchanges.
Last updated