Liquid AVS Token introduces a modular restaking asset that simplifies and balances EigenLayer’s token landscape, empowering both users and AVS teams.Because of the unique design of LAT, users can enjoy the following benefits:
Direct AVS Support
Users can directly support the protocols they find compelling, rather than
having their staking contributions bundled for general validation and
rewarded inefficiently with yields from less attractive projects. This
approach allows users to retain direct risk exposure to their chosen AVS,
enabling them to restake according to their individual risk and return
preferences.
Improved Yield
In addition to the yield or rewards generated by the AVS, LAT holders also
receive EigenLayer rewards in the form of EIGEN tokens and Area
rewards. These rewards are auto-compounded for further yield optimization.
Improved Capital Efficiency
With renewed access to liquidity, Area users can utilize LATs
across various DeFi protocols. The token can be traded, invested, and used
as collateral like any other cryptocurrency, in addition to its AVS-specific
functions.
Streamlined User Experience
The direct re(staking) process eliminates the need for users to worry about
operator selection in the traditional restaking workflow. Once users choose
their desired AVS, they simply click the stake button, and they are good to
go.
Composable Assets
Due to the direct risk and return exposure to a specific AVS, LAT can serve
as a foundational restaking asset in the DeFi ecosystem, enabling the
creation of more advanced restaking strategies or products. With
Area’s integrated dashboard, users can create and monitor a
real-time restaking portfolio, managing risk exposure all in one place.