> ## Documentation Index
> Fetch the complete documentation index at: https://docs.area.club/llms.txt
> Use this file to discover all available pages before exploring further.

# System Architecture

> Architecture overview of the Liquid AVS Token (LAT) smart contracts

The Liquid AVS Token (LAT) protocol enables **direct restaking** through a modular and extensible smart contract system. It routes user deposits to Autonomous Verifiable Services (AVSs) via LAT issuance, rebalancing mechanisms, and staker node coordination -— without relying on centralized intermediaries.

Below is a breakdown of the protocol architecture and core user flow:

<Frame type="glass">
  <img src="https://mintcdn.com/area/wtWiu_jp_3PoAwMw/public/images/developer/smart-contracts/user-flow.png?fit=max&auto=format&n=wtWiu_jp_3PoAwMw&q=85&s=1f001fdad9e0ae5f9371c30bc3e21fa3" alt="System Flow" width="600" height="841" data-path="public/images/developer/smart-contracts/user-flow.png" />
</Frame>

***

## User Entry: `LiquidToken`

Users deposit supported tokens into the `LiquidToken` contract. Exchange rates are fetched from the `TokenRegistry`, which is updated by the `TokenRegistryOracle`. Based on these rates, `LiquidToken` mints LATs (Liquid AVS Tokens) that represent the user’s staked position.

LATs can be transferred, traded, or redeemed by the user at any time, enabling liquidity and flexibility.

## Restaking Infrastructure

The `LiquidTokenManager` serves as the execution layer for restaking.

It:

* Handles deposits and internal accounting
* Coordinates token flows across the system
* Interfaces with the `EE Re-staking Manager`

The **EE Re-staking Manager** manages:

* Rebalancing LAT-backed assets across multiple AVSs
* Delegation of assets to staker nodes
* Handling slashing, exits, or validator set changes

This off-chain logic enables dynamic routing without compromising on-chain security guarantees.

## Staker Nodes & Coordination

Each `StakerNode` is a smart contract that holds a portion of the total delegated capital. These nodes:

* Interact directly with EigenLayer strategies
* Submit assets on behalf of LAT holders
* Earn yield based on performance and AVS allocation

The `Staker Node Coordinator` manages the entire set of nodes, routing deposits and rebalancing assets across them. It abstracts complex delegation logic and ensures optimal capital distribution.

## Restaking on EigenLayer

In the final step, assets held by each `StakerNode` are deposited into registered EigenLayer strategies. These strategies secure various AVSs and generate rewards that flow back to LAT holders.

***

## Summary Flow

```plaintext theme={null}
User
 ↓ deposits
LiquidToken
 ↓ mints LAT
LiquidTokenManager
 ↓ coordinates
Staker Node Coordinator
 ↓ routes
Staker Nodes
 ↓ delegate
EigenLayer
```