Non Cult Crypto News

Non Cult Crypto News

in

YieldNest launches new liquid restaking token

Stakers with Lido, Frax, Origin and Mantle can “restake” with the DeFi protocol. 

Own this piece of crypto history

Collect this article as NFT

COINTELEGRAPH IN YOUR SOCIAL FEED

Decentralized finance (DeFi) protocol YieldNest is launching a new liquid staking derivative (LSD) called ynLSDe designed to capture restaking yield from EigenLayer, according to an Aug. 21 announcement. 

The token “will allow the holders of Ether staked with Lido, FRAX, Origin Protocol, or Mantle to earn additional yield… through restaking,” YieldNest said. Lido, FRAX, Origin, and Mantle are decentralized Ethereum staking platforms, each of which issues its own LSD.

Restaking involves taking Ether (ETH) that has already been staked — posted as collateral with a validator in exchange for rewards — on the Ethereum network and using it to secure other protocols simultaneously. The premise is that in exchange for taking on additional risk, restaking can considerably enhance rewards.

Restaking rose to prominence after the launch of EigenLayer, a restaking protocol on Ethereum that has bootstrapped approximately $12 billion in total value locked (TVL) since 2023, according to data from DefiLlama. 

Liquid restaking protocols — such as Ether.fi and Puffer Finance — hold another roughly $11 billion in TVL, the data shows.

Liquid restaking protocols host more than billion in TVL. Source: DefiLlama

Related: Restaking is ‘inevitable,’ but the risks are still uncertain — Ether.fi CEO

EigenLayer hosts a growing constellation of “actively validated services” (AVS) — protocols such as EigenDA, eOracle and Lagrange State Committees — that secure themselves using EigenLayer’s restaked ETH. 

“Users get ynLSDe by putting stETH (Lido), sfrxETH (FRAX), or mETH (Mantle), OETH (Origin Protocol) into YieldNest’s restaking pool,” YieldNest said. “ynLSDe acts as a tradable and liquid ‘receipt’ token representing the underlying yield-generating restaked token. The generated restaking rewards are distributed back to ynLSDe holders.”

Receipt tokens such as ynLSDe “allow users to restake their assets while retaining liquidity, meaning they can still use their staked assets in other DeFi activities,” according to YieldNest. However, LSDs can also amplify risks

“The risk of restaking has not been fully characterized yet,” Mike Silagadze, CEO of liquid restaking protocol Ether.fi, said on Aug. 12

According to YieldNest, the protocol “aggregates all sources of potential yield for users, which includes EigenLayer Points, YieldNest Seeds, yields from [AVS], and even AVS Airdrops on top of the yield from staked ETH.” 

This article first appeared at Cointelegraph.com News

What do you think?

Written by Outside Source

Trump Trade: Bitcoin Pops 4% On Rumors Of Upcoming RFK Dropout

Skyfire launches blockchain payment network that lets AI spend your money

Back to Top

Ad Blocker Detected!

We've detected an Ad Blocker on your system. Please consider disabling it for Non Cult Crypto News.

How to disable? Refresh

Log In

Or with username:

Forgot password?

Don't have an account? Register

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

To use social login you have to agree with the storage and handling of your data by this website.

Add to Collection

No Collections

Here you'll find all collections you've created before.