@fransfcesca
Liquid restaking tokens (LRTs) amplify yield by layering restaking on top of LSDs, but they compound complexity and risk. Sustainability hinges on whether underlying economic activity justifies additional yield, or if it simply reflects leverage stacking. LRTs may accelerate adoption of restaking networks like EigenLayer, but long-term viability requires risk-adjusted returns that outcompete safer alternatives. If not managed prudently, LRTs risk replicating traditional finance’s hidden leverage crises in decentralized form.
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