YieldNest, an asset management layer for restaking, has announced the launch of the ynLSDe token, a significant advancement in Liquid Staking Derivatives (LSDs). This new token will enable holders of Ether staked with platforms such as Lido, FRAX, Origin Protocol, and Mantle to earn additional yield from Actively Validated Services (AVS) through restaking while retaining liquidity.
The introduction of ynLSDe is critical as it allows users to restake their already-staked ETH assets from various platforms to generate additional rewards. This mechanism ensures that staked assets remain liquid and can be utilized in other decentralized finance (DeFi) activities. Users can obtain ynLSDe by depositing stETH (Lido), sfrxETH (FRAX), mETH (Mantle), or OETH (Origin Protocol) into YieldNest's restaking pool, with ynLSDe acting as a liquid and tradable receipt token representing the underlying yield-generating restaked asset. The rewards from restaking are then distributed to ynLSDe holders.
YieldNest aggregates multiple yield sources, including EigenLayer Points, YieldNest Seeds, yields from AVS, and even AVS Airdrops, on top of the native staking yield from ETH. This results in a yield that exceeds the native staking returns of ETH staked directly in EigenLayer. The platform offers flexible use of ynETH as collateral, either for the basket itself or for isolated AVS categories.
Restaking is gaining traction as a method for earning passive income and optimizing capital use in DeFi. DeFiLLama reports a significant increase in Total Value Locked in liquid restaking, growing from $19.4 billion to $50.5 billion over the past 12 months. The market capitalization of Liquid Staking Tokens (LSTs) accepted by YieldNest exceeds $25 billion, indicating strong demand for Liquid Staking Derivatives.
YieldNest's ynLSDe distinguishes itself with several unique features. Unlike many protocols that use a single restaking token for both native and liquid restaking products, YieldNest offers ynETH for native restaking and ynLSDe specifically for liquid restaking. This separation enhances transparency and allows users to make decisions based on their specific needs, goals, and risk tolerance. Additionally, ynLSDe maximizes staked ETH assets through YieldNest Curated AVS Baskets, which can serve as collateral for the basket or isolated AVS categories. Furthermore, Liquid Restaking Tokens (LRTs) are designed for higher yield outcomes through dynamic allocation, optimizing returns by strategically allocating staked assets across various strategies. The token also prioritizes security with a streamlined code to minimize vulnerabilities.
YieldNest provides a straightforward solution for ETH holders to restake into EigenLayer and earn rewards while maintaining liquidity. This is achieved through Native Liquid Restaking Tokens (nLRTs) and Liquid Restaking Tokens (LRTs) representing restaked, yield-generating ETH or ERC20 tokens. The platform tailors its restaking strategies to align with individual risk tolerance and investment goals, offering both internal and external curated AVS baskets as well as isolated AVS categories. This allows users to select the most suitable risk-adjusted strategy, whether for a diversified basket or a focused single-asset solution.
By mitigating slashing risks through due diligence and strategic staking decisions, YieldNest maximizes yield and ensures secure liquid restaking. All AVSs in YieldNest's baskets undergo rigorous research and assessment by the platform's Risk Team, enabling users to choose the most appropriate strategy based on risk evaluation.
YieldNest's CEO and Co-Founder, Amadeo Brands, stated, "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."
