Summary
TLDR: Liquid restaking involves staking ether to earn a yield and loyalty points that can be converted into a token airdrop. Restaking protocols like Ether.Fi distribute a token, eETH, pegged to ether’s price, which can be used on DeFi protocols to earn more yield.
Key Points
1. Liquid restaking involves staking ether to secure Ethereum and earn a yield, along with loyalty points that can be converted into a token airdrop.
2. Restaking protocols like Ether.Fi distribute a liquid restaking token, such as eETH, which is pegged to ether’s price and can be used on other DeFi protocols to earn extra yield.
3. Liquid restaking offers a way for investors to maximize their returns on their ether holdings by participating in the staking process and earning additional rewards.