LRT
Last updated 17 October 2026Last verified 17 October 2026
What is an LRT (Liquid Restaking Token)?
Liquid Restaking Token. An LST that has been deposited into a restaking protocol, paying staking and restaking rewards but inheriting restaking risks including slashing from multiple AVSs simultaneously. The KelpDAO incident (18 April 2026, $292MM, per the LayerZero Labs incident report) showed how a failure outside the token, a forged cross-chain message accepted through a single compromised verifier, lands on every holder of an LRT. See: Gone in 46 Minutes.
TradFi equivalentThe LST idea taken one layer down, a negotiable receipt for a position already pledged to several services. The receipt inherits every slashing claim on the position beneath it, and because all holders redeem through one pool, a loss in the pooled assets, wherever it originates, is borne by everyone in it.