August 20th – YieldNest, an asset management layer for restaking, announces the launch of the ynLSDe token that represents Liquid Staking Derivatives. This will allow the holders of Ether staked with Lido, FRAX, Origin Protocol, or Mantle to earn additional yield from AVS through restaking.
Why does it matter?
LSDs allow users to restake their assets while retaining liquidity, meaning they can still use their staked assets in other DeFi activities. ynLSDe enables restaking already-staked ETH assets from other platforms, offering additional rewards while maintaining liquidity.
Users get ynLSDe by putting stETH (Lido), sfrxETH (FRAX), or mETH (Mantle), OETH (Origin Protocol) into YieldNest’s restaking pool. 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.
YieldNest aggregates all sources of potential yield for users, which includes EigenLayer Points, YieldNest Seeds, yields from Actively Validated Services (AVS), and even AVS Airdrops on top of the yield from staked ETH, which is a bit higher than the native staking yield of ETH put into EigenLayer itself. ynETH can function as collateral for the basket itself or serve as collateral for isolated AVS categories.
Why is restaking on the rise?
The adoption of restaking as a method for earning passive income and the demand for more efficient capital utilization in DeFi are rising. According to DeFiLLama, over the past 12 months, Total Value Locked in liquid restaking has more than doubled, growing from $19.4 billion to $50.5 billion (*will need to adjust at the date*).
The market capitalization of Liquid Staking Tokens (LST) accepted by YieldNest exceeds $25 billion, showcasing the existing demand for Liquid Staking Derivatives.
Why does ynLSD stand out?
YieldNest’s ynLSDe offers unique features that differentiate it from competitors, such as:
Native restaking – While many protocols use a single restaking token for both native and liquid restaking products, YieldNest introduced ynETH for native restaking and ynLSDe specifically for liquid restaking. This distinction provides greater transparency, allowing one to make more informed decisions tailored to their specific needs, goals, and risk appetite.
Basket composition – ynLSDe maximizes staked ETH assets. It’s designed as a YieldNest Curated AVS Baskets and can function as collateral for the basket itself or serve as collateral for isolated AVS categories.
Dynamic allocation for higher yield outcomes – Liquid Restaking Tokens (LRTs) are designed to offer higher yield outcomes through dynamic allocation. By optimizing how staked assets are allocated across various strategies, YieldNest enhances potential returns, starting with ynLSDe;
A lower attack surface due to cleaner implementation—Security is ynLSDe’s top priority. Token’s code is designed with simplicity and efficiency in mind, minimizing unnecessary complexity and potential vulnerabilities.
Why YieldNest?
YieldNest delivers an easy solution for ETH holders to restake their ETH into EigenLayer and earn rewards while maintaining liquidity. It is secured through the use of Native Liquid Restaking Tokens (nLRTs) and Liquid Restaking Tokens (LRTs) representing their restaked, yield-generating ETH or ERC20 tokens.
YieldNest tailors its restaking strategies to align with each user’s risk tolerance and investment goals. YieldNest offers both internal and external curated AVS baskets, as well as isolated AVS categories, allowing users to choose from native restaking (ynETH), liquid restaking solutions (ynLSDe), or specific isolated products. This approach ensures that users can select the most suitable risk-adjusted strategy, whether they prefer a diversified basket or a focused, single-asset solution.
YieldNest offers secure liquid restaking, maximizing yield by mitigating slashing risks through due diligence and strategic staking choices for better profits. All AVSs in the baskets that YieldNest offers undergo an intensive research and assessment process by YieldNest’s Risk Team, allowing users to choose the most appropriate strategy for them based on the risk evaluation.
‘’We have created an opportunity for LST holders to earn yield from AVS through restaking without selling off their tokens. We are streamlining complex financial products in DeFi, broadening their audience, and fostering the development of a decentralized financial system. By offering a new product for liquid staked derivatives, we aim to drive the market of derivative financial products in DeFi, boosting profits while maintaining a low-risk profile for users seeking liquidity and increased yield for their tokens.” – says Amadeo Brands, YieldNest’s CEO & Co-Founder.
About
YieldNest is an asset management layer for restaking. Its liquid restaking protocol optimizes yield generation on staked assets through diversified, risk-adjusted strategies. Built on the EigenLayer protocol, it maximizes yield by mitigating slashing risks through due diligence and strategic staking choices. YieldNest’s innovative approach ensures returns by integrating advanced strategies and a robust yield layer across DeFi.
YieldNest is backed by Faculty Capital, Backed VC, Proof Capital, and others, along with notable angels, including the founders of Curve (Michael Egorov, Martin Krung & Naga King), Kyber (Loi Luu), Frax (Sam Kazemian), and other contributors.
For more information, please visit https://www.yieldnest.finance/