Liquid Restaking Tokens: What They Are and Why They Matter in Crypto
When you stake Ethereum, you lock up your ETH to help secure the network and earn rewards. But what if you could stake it and still use it to earn more elsewhere? That’s where liquid restaking tokens, tokens that represent staked assets while allowing them to be used in other DeFi protocols. Also known as lRTs, they’re turning passive staking into active capital. Unlike regular liquid staking tokens like stETH or rETH, which just let you trade or lend your staked ETH, liquid restaking tokens go further—they let you reuse that same staked ETH to secure other protocols, like decentralized oracle networks or rollups, and earn extra yields on top.
This isn’t theoretical. Projects like EigenLayer, a protocol that lets Ethereum stakers re-stake their ETH to secure additional services made it real. By using EigenLayer, you can stake your ETH once, get a liquid restaking token like eETH, and then use that token to earn rewards from multiple sources: Ethereum’s base staking yield, plus yields from securing services like Chainlink or Arbitrum. It’s like renting out your house and also letting someone use your driveway for delivery vans—all without moving out. Other chains and tools are catching up, but EigenLayer is still the biggest player. And while this sounds like free money, it comes with trade-offs. If one of the services you’re securing gets hacked, your staked ETH could be at risk. It’s not just about compounding rewards—it’s about layering risk.
What you’ll find below isn’t a list of every token or every project. It’s a curated collection of real stories: how people are using restaking tokens, what went wrong, and what actually works in 2025. You’ll see how some users turned small stakes into steady income, how others lost funds by misunderstanding the risks, and why some platforms claiming to offer "double rewards" are just scams. These aren’t guides written by marketers. These are reports from people who did the work, checked the contracts, and lived the outcome. Whether you’re new to staking or already holding lRTs, what follows will help you cut through the noise and know what’s real.
