In an interview with Blockworks, Stader Labs co-founder Dheeraj Borra said that the staking service plans to launch the Ethereum mainnet’s first liquid, newly staked token, rsETH, in the coming weeks.
rsETH allows users to “re-stake” liquid stake tokens such as Coinbase’s Wrapped Stake ETH (cbETH), Lido’s Stake ETH (stETH), and Rocket Pool’s rETH on multiple different networks, minting a liquid token that represents their share of a restake contract.
As Borra described, re-hypothecation is effectively borrowing the economic security of the assets being staked. For example, 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.
Read more: Lidos’ wrapped staked ETH is coming to Cosmos
Stader launched rsETH shortly after EigenLayer deployed its restaking protocol on the Ethereum mainnet. EigenLayer currently accounts for 173,800 newly staked ETH, and rsETH is being built on EigenLayer.
Borra claims Stader’s rsETH is designed to make it easier to enter the restaking ecosystem.
With rsETH, users can deposit their liquid staked ETH tokens into the resting contract, but also mint liquid RSETH. This means users can create decentralized exchange liquidity pools that allow them to enter and exit rsETH positions representing their newly staked assets. There is currently no other such liquid token for EigenLayer that also has a 7-day withdrawal period.
The introduction of a liquid restaking token could be a boon for the emerging industry. Liquid stake tokens represent 45.4% of the 27.1 million ETH currently staked.
“We hope to provide users with a space to continue to engage with staking according to their risk-reward profile by giving users the opportunity to use their tokens in DeFi and earn and achieve whatever goals they want “Achieve, basically the same as Liquid.” Staking has been launched, but this time for re-staking,” said Borra.
Borra said rsETH contracts have so far only been released on the Ethereum testnet on September 21, with a reported 800 testnet users. The product is not yet available on mainnet but could be available in the coming weeks.
“We hope to launch the mainnet at the end of October or the first or second week of November, that is the timeline we are working towards,” Borra said.
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