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LRT² FAQ

Frequently asked questions on LRT²

Updated over 2 weeks ago

What is LRT²?

LRT² (read as LRT Squared) is a unified restaking rewards protocol. Its vault holds the rewards tokens as underlying assets. Through LRT², LRT projects can pool restaking network protocol rewards into this single vault and issue vault share tokens to their stakers (or distributor contract). This system cuts transaction costs and streamlines the rewards process, great for those with smaller stakes who might find it easier to manage and trade their shares collectively. Larger stakeholders can redeem and possibly arbitrage, which will drive the market price of LRT² tokens.

Is there a difference between AVS rewards from direct staking on Eigenlayer vs Etherfi?

Users will get the same effective APR as if they were earning all of those different emissions from Eigenlayer, BUT they'll all be wrapped up in a single token, $LRT².

When is LRT² distributed?

ether.fi will distribute LRT² tokens through a cumulative claims distributor contract on a weekly basis. Weekly distributions will be announced on our X account. You do not need to claim every week, but can claim at any time. If you continue to stake without claiming, your claimable amount will continue to rise week-over-week.

I deposited into a DeFi protocol that isn't yet integrated - what will happen to my weekly rewards?

Since ether.fi uses a cumulative claims contract, ether.fi is able to make sure that your LRT² is properly allocated to you once we integrate the DeFi protocol. Each week, we will recalculate what your distribution should have been for the last few months, and ensure you're able to claim that full amount.

Will underlying assets be staked?

They will, making LRT² an interest-bearing derivative that will qualify users for any of the underlying AVS or restaking protocol seasons or rewards.

Does LRT² have a governance token?

Yes! This token will be used for many purposes:

  • Whitelisting integrated assets

  • Determining $LRT²GOV emissions

  • Setting rate / risk parameters

Is LRT² claimable on L2s?

It’s not possible at the moment since AVS rewards are distributed on ETH mainnet.

How is the LRT² price determined?

It’s explained in the LRT² whitepaper: https://LRT².gitbook.io/LRT²/docs/whitepaper

Do I need to claim my LRT² or can I just let it accumulate?

Restaking rewards will continue to accrue over time, minted into LRT² tokens every week. you can allow them to accumulate without having to claim since there’s no deadline. Claim when you want, unwrap if you'd like!

Are LRT tokens available for restaking, or what other options are there for using them?

At this time LRT² tokens are available on Uniswap for trading, and may become available later on across DeFi platforms.

What is the difference between LRT² tokens and LRT² points?

LRT² tokens are the rewards provided by restaking platforms for stakers that participate in their ecosystem. LRT² points are earned from users staking their ETH in positions that are related to the LRT² protocol. (For example, holding claimed or unclaimed LRT² tokens)

Where can LRT tokens be converted?

Is the price of LRT² fixed?

The price depends on the price performance of underlying assets.

How does EIGEN stake earn LRT²:

Staking EIGEN currently receives 25% of weekly EIGEN emissions; these rewards get wrapped into LRT² tokens for eEIGEN.

For restaked EIGEN, EIGEN rewards are auto-compounding, so it will accumulate value. Any future AVS rewards would still be given out as LRT² though.
https://www.blog.eigenlayer.xyz/introducing-programmatic-incentives-v1/

What is the LRT² distribution based on?

Total rewards/amount of eETH/weETH

Can EIGEN stakers earn LRT² tokens?

For restaked EIGEN, EIGEN rewards are auto-compounding, so it will accumulate value. Any future AVS rewards would still be given out as LRT² though.

How are LRT² points calculated? Is there any conversion between LRT² points and LRT² tokens?

Regarding eEIGEN: are there any platform fees besides the operator fees? (similar to etherfi fees on the staking yield):

We take a 10% fee on all restaking rewards (5% Etherfi & 5% Operators), regardless of what asset it is generated on.

Do members receive LRT² governance points by holding LRT² tokens? (if yes, does that apply to their unclaimed LRT² too?)

If you're holding LRT², whether in a claimed or unclaimed position, you're earning LRT² points. Once you unwrap however, you would only be holding the underlying assets, which do not earn you points.


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