Protocol Structure
InceptionLRT’s protocol structure is the foundation of its modular and comprehensive restaking ecosystem. It is designed to address the fragmentation and complexity of DeFi rewards by offering a range of solutions for diverse user needs. This structure is built around three core types of Liquid Restaking Tokens (LRTs), each with a unique purpose and functionality: MetaLRTs, Isolated LRTs, and Native LRTs.
MetaLRTs: Multi-Curated Solutions for Diversified Rewards
MetaLRTs represent the pinnacle of InceptionLRT’s modular architecture, offering users exposure to multiple restaking protocols and yield opportunities through a single token. These tokens are designed for users seeking simplicity without sacrificing diversification or rewards.
Key Features:
Multi-Curated Exposure: MetaLRTs allow users to restake assets across multiple protocols, such as EigenLayer and Symbiotic, gaining access to diversified DeFi rewards from multiple ecosystems.
One-Click access: By bundling strategies into a single token, users avoid the complexity of managing multiple restaking positions.
Increased Yield Potential: MetaLRTs optimize user returns by leveraging curated vaults designed by InceptionLRT’s ecosystem curators. Thanks to such curators, liquidity is delegated to the most efficient and reliable Validation Services and Networks. The meticulous selection allows to mitigate slashing risks while while benefiting from higher yield.
Example of diversified exposure: Imagine a MetaLRT that allocates 50% of the restaked assets to EigenLayer for Ethereum-centric rewards and 50% to Symbiotic for BTC-focused opportunities. With one token, users gain diversified exposure across multiple ecosystems.
MetaLRTs embody the modular ethos of InceptionLRT, simplifying user participation while maximizing strategic flexibility and returns.
Isolated LRTs: Asset-Specific Risk Management
Isolated Liquid Restaking Tokens (iLRTs) are tailored solutions that allow users to manage risks associated with individual assets. Each iLRT is linked to a specific token and operates within its own isolated vault, providing granular control over restaking strategies.
Key Features:
Risk Isolation: Assets restaked via iLRTs are not pooled with others, minimizing cross-asset risks.
Dedicated Vaults: Each supported asset has its own vault, enabling optimized strategies specific to the token’s characteristics.
Customizable Exposure: Users can choose which assets to restake without influencing the risk profile of others.
Use Case Example: A user restaking stETH via an isolated vault on EIgenLayer will receive instETH, ensuring that their exposure is limited to EigenLayer restaking rewards without risk from other assets in the ecosystem.
Isolated LRTs are ideal for users prioritizing risk management and asset-specific strategies within a secure and transparent framework.
Native LRTs: Ethereum-Centric Staking Solutions
Native Liquid Restaking Tokens (nLRTs) are designed for Ethereum stakers looking to unlock the full potential of their ETH holdings. These tokens serve as the foundational layer within the protocol, providing simple yet powerful options for restaking directly on Ethereum.
Key Features:
Dual-Avenue Rewards: Native restaking with nLRTs allows users to simultaneously access staking rewards from Ethereum’s Proof-of-Stake (PoS) structure and additional rewards derived from restaking protocols. This dual reward system maximizes earning potential.
Protocol Integrated: By connecting seamlessly with Restaking Protocols (ex: EigenLayer), nLRTs enable users to participate in supporting Active Validated Services (AVSs), further expanding their reward opportunities and contributing to Ethereum’s economic security.
Straightforward Utility: Users can engage in restaking with minimal complexity, benefiting from a simple and intuitive interface while retaining the flexibility to participate in DeFi protocols.
Use Case Example: A user restaking ETH through InceptionLRT receives inETH, a native liquid token that reflects the value of staking and restaking rewards of their ETH. This token allows the user to earn staking rewards from Ethereum’s PoS mechanism while gaining additional restaking rewards through EigenLayer.
Native LRTs provide a streamlined entry point into restaking for users focused on native assets and their immediate ecosystem.
Bringing It All Together
InceptionLRT’s protocol structure is built on a modular framework designed to accommodate diverse user requirements. MetaLRTs offer multi-protocol exposure, enabling users to diversify rewards and risk across several curated validation services. Isolated LRTs provide asset-specific restaking, granting users precise control over economic security delegation to individual protocols. Native LRTs focus on simplicity, allowing users to restake directly within the Ethereum ecosystem. This structured approach addresses the challenges of fragmented restaking while fostering a more cohesive and scalable DeFi ecosystem.
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