🧵LRTs: the new DeFi primitive — or just fancy rehypothecation?

1/ Lido gave us liquid staking. EigenLayer took it further. Now we have rsETH, ezETH, wBETH, LsETH… This isn’t just “more staking”. It’s yield-on-yield composability. But is that a feature — or a risk? 👇 2/ LRTs (Liquid Restaking Tokens) stack exposure: You stake ETH. ETH gets restaked on EigenLayer. You get rsETH. rsETH gets LP’d or farmed. Each layer adds yield. Each layer adds risk. 3/ The danger? LRT protocols are often centralized at launch. Slashing conditions are opaque. And validator behavior is now tied to multiple incentive layers. This creates reflexive risk. Think: Luna + Anchor + Curve — all over again. 4/ LRTs are composable. But not “plug-and-play”. Before you chase that sweet APR, ask: Who can trigger slashing? What happens in a withdrawal run? Is the LRT more like a bond... or a balloon? 5/ Restaking is real innovation. But don’t get drunk on leverage. Some of these yields are paid in hopium. #Finance #MakeMoney