Skip to main content
Liquid Staking Tokens (LSTs) and Liquid Restaking Tokens (LRTs) are at the heart of Inertia’s value proposition, serving as complementary elements that supercharge the lending protocol:
  • Liquid Staking Tokens (LSTs) represent ownership of staked assets that remain liquid and transferrable​. When users stake an asset, they receive an LST in return, which accrues staking rewards and can simultaneously be used in DeFi – for instance, as collateral for a loan​. This allows stakers to earn rewards and borrow at the same time, effectively making staked assets doubly productive.
  • Liquid Restaking Tokens (LRTs) extend this concept by allowing already-staked assets (or LSTs) to be restaked on additional protocols for extra yield​. Platforms like EigenLayer issue LRTs to users who restake their tokens to secure other networks. An LRT thus represents a restaked asset that also retains the ability to earn additional rewards on top of normal staking​. Importantly, LRTs are designed to be used in DeFi just like LSTs – users can trade, lend, or borrow them to amplify returns​
In Inertia’s lending market, LSTs and LRTs from major ecosystems can be supplied and used as collateral, blurring the line between staking and lending. For example, a user holding staked INIT can deposit it into Inertia to earn interest from borrowers while still receiving INIT staking rewards in the background.
⌘I