Stader Labs preps liquid restaking token launch
rsETH is currently only available on testnet and claims 800 users
Vladimir Kazakov/Shutterstock modified by Blockworks
In an interview with Blockworks, Stader Labs cofounder Dheeraj Borra said the staking service is planning to launch Ethereum mainnet’s first liquid restaked token, rsETH, in the coming weeks.
With rsETH, users will be able to “restake” liquid staked tokens such as Coinbase’s wrapped staked ETH (cbETH), Lido’s staked ETH (stETH) and Rocket Pool’s rETH on multiple different networks, minting a liquid token to represent their share in a restaking contract.
Restaking, as Borra described, is effectively borrowing the economic security of staked assets. For instance, ether (ETH) staked via Rocket Pool’s rETH could simultaneously be used as a validator for the Ethereum network as well as additional blockchains and applications.
Stader launched rsETH soon after EigenLayer deployed its restaking protocol on Ethereum mainnet. EigenLayer currently accounts for 173,800 ETH restaked, and rsETH will be built on top of EigenLayer.
Borra claims Stader’s rsETH is designed to simplify onboarding to the restaking ecosystem.
With rsETH, users can deposit their liquid-staked ETH tokens to the restaking contract, but also mint liquid rsETH. This means that users can create decentralized exchange liquidity pools that will allow them to enter and exit rsETH positions representing their restaked assets. Currently, no other such liquid token exists for EigenLayer, which additionally has a 7-day withdrawal period.
The launch of a liquid restaking token could be a boon for the emerging vertical. Liquid staked tokens account for 45.4% of the 27.1 million ETH currently staked.
“What we hope to do is to provide a space for users to continue getting exposure to staking according to your 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 said.
rsETH contracts have so far only been released on Ethereum testnet as of Sept. 21, with a reported 800 testnet users, Borra said. The product is not yet available on mainnet, but could be in the coming weeks.
“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 said.
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