What is EigenLayer?

EigenLayer is a protocol built on Ethereum that introduces restaking. Users (stakers) that stake ETH natively or with a liquid staking token (LST) can opt-in to EigenLayer smart contracts to restake their ETH or LST (Lido stETH, Rocket Pool rETH, Coinbase cbETH). Stakers delegate their stake to operators who then perform tasks to validate other actively validated services (AVSs) such as L2s, bridges, shared sequencers, data availability services building on EigenLayer. Stakers receive rewards from AVSs through their operators performing tasks.

Introducing Astrid Finance

Astrid Finance is the liquid restaking pool on Ethereum powered by EigenLayer. Users deposit LSTs (stETH, rETH or cbETH) into the restaking pool and receive back Astrid liquid restaked tokens or LRTs (rstETH, rrETH or rcbETH). Pooled LSTs are restaked on EigenLayer and delegated across multiple operators voted by the Astrid DAO. Rewards earned are compounded (restaked back to EigenLayer) and distributed through a balance rebase, where users who hold LRTs will see their balance automatically adjusted.

By restaking through Astrid, users are able to obtain instant liquidity for their restaking position by receiving liquid restaked tokens (LRTs). Users can trade, transfer and leverage their LRTs to maximize rewards across DeFi protocols while continuing to accrue rewards on EigenLayer. By pooling LSTs and delegating across multiple operators on EigenLayer, Astrid provides users with diversification, in contrast to users who restake independently and delegate to just one operator, while having to continuously monitor the performance and decide which operators to choose from.

Architecture and User Flow

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  1. Users deposit LSTs into the restaking pool to mint an equivalent amount of liquid restaked tokens or LRTs.

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  2. Pooled LSTs are split up and transferred to multiple Astrid Delegator smart contracts, ready to be restaked on EigenLayer. The number of Delegators and amount of LSTs held by each are determined by governance.

  3. For each Delegator smart contract, Astrid governance will monitor the performance and choose an Operator on EigenLayer to restake and delegate to. This process of delegating across multiple Operators provides diversification to Astrid restakers and reduces the risk of a single bad or malicious Operator being slashed. Governance can also choose to unstake and get back the LSTs from a poor performing Operator, or when there are pending withdrawal requests from users.

  4. Rewards (minus 10% protocol commission which is sent directly to the Astrid DAO treasury) received from our Operators performing tasks for AVSs on EigenLayer are swapped to supported LSTs (currently stETH, rETH, cbETH) and deposited back to the Astrid restaking pool smart contract. This allows rewards earned to be compounded (restaked back to EigenLayer), benefiting Astrid restakers.

  5. Daily balance rebase will be performed, where users who hold LRTs will see their balance automatically adjusted. For example, with +10% rewards, a balance of 100 $rstETH will increase to 110 $rstETH after the rebase. This also keeps a 1:1 ratio between LST and LRT (1 stETH : 1 rstETH, 1 rETH : 1 rrETH ratio etc.), as any increase (due to rewards) or decrease (due to Operator slashing) in LST supply in the restaking pool will be reflected directly in the changes to the total supply of LRT after each rebase. This ensures a 1 to 1 backing of LST for each LRT supply. For rebasable LST such as Lido stETH, the equivalent rstETH will additionally be rebased to reflect the rewards accrued on stETH as well.

Hence, Astrid APR = LST APR + EigenLayer restaking APR.

  1. Users can request to withdraw back their LST from the restaking pool. For example, when requesting to withdraw back 1 $stETH, 1 $rstETH from the user’s balance will be transferred to the restaking pool to be “locked” and the user’s withdrawal request will be put in the withdrawal queue for processing.

Requests in the withdrawal queue are processed sequentially (first come first serve). If there is a need to source for more liquidity to meet the withdrawal demand, Astrid Delegators will unstake from their respective Operators on EigenLayer. Unstaking from EigenLayer is a multi-step process to ensure that funds can only be withdrawn once they are no longer placed 'at stake' on an active task of a service built on top of EigenLayer. Hence withdrawal requests will typically take 3-5 minutes on testnet and up to 7-10 days on mainnet due to the delay imposed by the EigenLayer protocol when unstaking.

For instant liquidity, the Astrid DAO will also provide LRT/LST liquidity pools on Uniswap or Curve, and through liquidity mining programs.

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  1. Once a withdrawal request has been processed, users can claim their LST from the restaking pool to complete the withdrawal process. A user can have multiple requests and claims. Do note that the amount you can claim may differ from your initial request due to Operator slashing occurrence if any.

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Astrid Finance App

Testnet (Goerli): testnet.astrid.finance

If you’re an Operator who wants to be our partner for restakers’ delegation, or a Service that wants to leverage restaked assets with the onboarded operators, please do reach out to us and we’d love to chat: @AstridFinance.