March 27, 2024
Stader Labs Announces rsETH, the First Liquid Restaked Coin on Ethereum Mainnet
Altcoins News

Stader Labs Announces rsETH, the First Liquid Restaked Coin on Ethereum Mainnet

Dheeraj Borra, a co-founder of Stader Labs, said that the staking service would soon introduce rsETH, the first liquid restaked coin on the Ethereum mainnet.

With rsETH, users may “restake” liquid staked tokens across a variety of networks, including Coinbase’s wrapped staked ETH (cbETH), Lido’s staked ETH (stETH), and Rocket Pool’s rETH, creating a liquid token to signify their stake in a restaking contract.

As Borra put it, restaking is essentially borrowing the financial security of staked assets. A validator for the Ethereum network as well as other blockchains and apps might be utilized at the same time using ether (ETH) staked through Rocket Pool’s rETH.

Soon after EigenLayer released its restaking protocol on the Ethereum mainnet, Stader created rsETH. The ETH restated by EigenLayer presently stands at 173,800, and rsETH will be constructed on top of it.

Borra asserts Stader’s rsETH is intended to make joining the restaurant ecosystem simpler.

Users can mint liquid rsETH as well as deposit their liquid-staked ETH tokens to the restaking contract while using rsETH. As a result, users can establish decentralized exchange liquidity pools that will enable them to enter and exit rsETH positions that reflect their restaked assets. There isn’t currently any similarly liquid token for EigenLayer, which also has a 7-day withdrawal limitation.

The introduction of a liquid restaking token may be beneficial for the new vertical. Of the 27.1 million ETH that is now staked, liquid staked tokens make up 45.4% of the total.

“What we hope to do is provide a space for users to continue getting exposure to staking according to their risk-reward profile, giving users the ability to use their tokens in DeFi and earn and accomplish whatever objectives, effectively the same thing that liquid staking has brought to the market, but this time for restaking,” Borra explained.

As of September 21, with 800 reported testnet users, rsETH contracts have only been made available on the Ethereum testnet, according to Borra. The product has not yet been made accessible on the mainnet, although it could do so soon.

“We are hoping to launch mainnet at the end of October or the first or second week of November; that’s the timeline we’re working towards,” Borra concluded.

Image: Unsplash

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