> For the complete documentation index, see [llms.txt](https://docs.liquifydao.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.liquifydao.com/getting-started/liquid-restaking.md).

# Liquid Restaking

#### **What is Liquid Restaking?**

**Liquid Restaking** is an advanced evolution of liquid staking that allows users to earn rewards not just from staking a token once, but by **restaking it across multiple chains and protocols**—**without sacrificing liquidity**.

In the traditional Proof-of-Stake (PoS) model, once you stake your assets, they are **locked** and unusable. Liquid staking introduced **LSTs (Liquid Staking Tokens)**—tokenized receipts representing staked assets that are tradable, usable in DeFi, and continue to earn yield.

**LiquiFy DAO** takes this one step further by enabling **liquid restaking**, issuing **liqTokens** (e.g., `liBNB`, `liETH`, etc.) that can be **restaked** into multiple protocols and Layer 2s simultaneously while maintaining full liquidity and composability.

***

#### 💡 **Benefits of Liquid Restaking**

Liquid restaking unlocks multiple advantages that go beyond traditional staking and basic LSTs:

***

#### 1. **Maximized Yield via Cross-Chain Restaking**

With LiquiFy, users can **restake their assets across multiple networks**, participating in multiple validator sets or yield strategies simultaneously. This **stacked yield** design optimizes staking rewards across different ecosystems.

***

#### 2. **Uninterrupted Liquidity**

Users receive **liqTokens** representing their staked and restaked positions. These can be:

* Traded on DEXs
* Used as collateral
* Bridged across supported chains

This removes the need to wait for “unbonding” periods or lockups, giving users real-time flexibility with their capital.

***

#### 3. **DeFi Composability**

liqTokens (e.g., `liBNB`, `liETH`) are fully **composable** across the DeFi landscape:

* Supply to lending platforms
* Stake in yield farms
* Use in derivative protocols
* Participate in cross-chain governance or prediction markets

Your staked assets are no longer idle—they are working in **multiple protocols at once**.

***

#### 4. **Capital Efficiency Boost**

By allowing users to **retain liquidity** and **reuse capital**, LiquiFy enhances capital efficiency across chains and strategies. This is crucial in fast-moving markets where time-locked assets can mean missed opportunities.

***

#### Example Workflow:

> Stake BNB → Receive `liqBNB` → Bridge to L2 → Restake on another validator → Use `liBNB` in DeFi protocols → Earn multiple layers of yield


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