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 → UseliBNBin DeFi protocols → Earn multiple layers of yield
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