Until now, the LRT market has been big on hype and short on technical innovation ๐ฌ
Our latest Medium article explains how Rest addresses this with our Algorithmic Collateral Management (ACM) system, the first breakthrough technology in the LRT space ๐ป:
https://t.co/gkp8ANbciF
The liquid restaking sector has a liquidity problem.
Current LRTs are failing to generate enough liquidity to support long-term utility.
Rest Finance has a solution.
Read all about it here:
https://t.co/70zvl3L2cb
Rest easy ๐ค
If you look very closely at the portion of the iceberg below the surface in this image, you can see Rest's ACM emerging from the deep liquidity of the ocean ๐
The first genuine product innovation in the LRT space arrives this week ๐
The liquid restaking market has a liquidity problem ๐
Current LRTs are not generating enough liquidity to support longterm utility.
Rest's ACM solves this โ
Get ready for big news soon as we announce the launch of DeFi's first ACM-boosted LRT ๐
EigenLayer deposits now reopening on 5th Feb and 200k ETH limit on LSTs being removed ๐
Rest Finance dApp will be launching before then and accepting both ETH and LST deposits๐
We'll be announcing launch date early next week, so keep notifications on๐
๐ Major Update! As we near the mainnet launch, we're shifting gears. Our next cap raise is delayed by a week, ushering in a new phase for LSTs.
https://t.co/Jl4XVm6esb
Standalone LRTs have a ceiling on their real yields, which rely solely one restaking rewards.
Rest's ACM shatters that ceiling ๐
Our goal is for the ACM to boost yields by 3-4%, which would be a โผ50% uplift on typical LRT yields.
We're different from the rest ๐ค
Restaking doesn't just mean greater yields, it will also deliver greater security๐
Rest Finance is proud to be at the forefront of a higher-yield, more secure future for Ethereum.
We conducted a detailed market review, which suggests that current LSTs depeg by 1%, at least 11 times a week ๐
If LRTs follow the same trend, then there will be a serious utility issue.
The Rest ACM solves this, providing a novel mechanism for peg stability โ
Rest easy ๐ค
1st-generation LRTs do little more than pass on restaking yields from Eigenlayer and make them liquid ๐
restETH is the first 2nd-generation LRT, adding genuine value by injecting a new source of yields through our unique ACM system ๐
Product innovation will win the day ...
Rest easyโฆ @eigencloud is getting even more secure๐
Itโs demonstrating itself to be a project with a long-term vision ๐๏ธ
Thatโs why Rest is building for the long-term too, with the first ACM-boosted LRT ๐ค
Nice overview of the nascent LRT sector๐
But theyโre going to need to add a column for Algorithmic Collareral Management soon โฑ๏ธ
Rest is the only one to tick it and thatโs why we have the edge โ
Rest easy with the first 2nd-generation LRT ๐ค
Superior yields โ
Deeper liquidity โ
Stronger peg stability โ
Rest Finance's Algorithmic Collateral Management (ACM) system ensures that our LRT, restETH, has all these features.
We're not like the rest ๐ค
LRTs, LSTs, modularityโฆ Rest sits at the centre of all of the top 3 narratives here๐
Now just wait until they hear about Algorithmic Collateral Management ๐คซ
Curious about the next BIG crypto narrative? ๐
Check out our roundup of the top 11 narratives for 2024, including restaking, blockchain modularity, and more โฌ๏ธ https://t.co/vR8RVZzh3x
Current LRT projects all rely on the same cut-and-paste formula โ๏ธ
Based entirely on restaking yields + unsustainable emissions ๐
Rest is different from the Rest ๐ค
Our novel ACM system increases yields and deepens liquidity.
Read more about it here:
https://t.co/p71wew1VI2
Genuine technical innovations like these are what give restETH its edge over copy-and-paste LRTs projects.
So get ready for a future of high yield, deeply liquid, infinitely scalable LRTs.
STEP 3: The user decides to redeem their restETH back into ETH. They receive their deposit plus any rewards accrued.
The extra restETH that was held in the ACM is then burnt, restoring supply parity to ETH / restETH
This provides 2 key benefits to the user and the protocol:
1. LP fees from the ACM's Uniswap v3 position boost user rewards, delivering higher yields.
2. The ACM delivers a constant source of deep liquidity to ETH / restETH pairs.
All whilst ensuring long-term supply parity.
STEP 2: 9 ETH of the deposit is restaked on EigenLayer, earning restaking rewards.
Meanwhile, 1 ETH is put into the ACM where it is paired along with 1 newly minted restETH in a Uniswap v3 Liquidity Pool, earning LP tokens
Here's a visual representation of the ACM mechanism that positions restETH to deliver higher yields and deeper liquidity than current LRTs ๐
Now, let's unpack how it all works ๐งต
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