Library · Crypto, word by word · DeFi
What is a liquid restaking token?
A liquid restaking token is a tradable token you receive when your staked ETH, or a liquid staking token, is restaked through a protocol to secure additional services. It aims to earn both staking and restaking rewards while staying usable elsewhere in DeFi.
What it means for you
The risks stack: the staking provider's, the restaking protocol's, each service your stake secures, and the token's own market. A slashed operator's loss is shared, withdrawals wait through an unbonding period, and under stress the token can trade below the ETH behind it.
How it works
Restaking reuses already staked ETH to secure other services, which pay extra rewards. A liquid restaker first holds a liquid staking token, a receipt for staked ETH, then deposits it with a restaking protocol, which mints a liquid restaking token in return. If restakers or operators go offline, censor or try to corrupt a network, part or all of their stake can be slashed, and a slash while securing several services can weaken security for the others. Withdrawing means waiting out an unbonding period, so holders who want out quickly sell the token on a market, where its price can deviate from the underlying value.
Sources: ethereum.org: Restaking, ethereum.org: Pooled staking · checked 4 October 2026
Often confused with
Related words
Educational content, not financial advice. Written by hand and checked against the source named above. Something wrong? Tell us and we reply within two business days.