Restaker: Liquid Restaking Aggregator on Ethereum

Restaker is an innovative cross-chain liquid restaking aggregation layer built on the Ethereum Virtual Machine (EVM). Designed to simplify and secure ETH and Liquid Staking Token (LST) provisioning, Restaker diversifies user assets across various restaking platforms, mitigating risks associated with any single LST asset. The platform also empowers users to launch their own restaking strategies. Thereby, offering a comprehensive view of the restaking landscape and enabling informed decision-making. Through Restaker, users can earn higher yields and accumulate points offered by multiple protocols simultaneously.

Problem Statement

Single Point of Failure: Traditional staking in restaking-based projects often involves locking tokens in a single platform. This practice exposes users to critical risks, such as vulnerabilities in smart contracts, slashing of staked assets due to node operator inactivity, or failure to meet the requirements of Attestation Validation Software (AVS). These issues can lead to reduced rewards or even asset loss.

Complex User Experience: Currently, there is no unified platform for restaking analytics that helps users make informed decisions. Stakers must manually monitor various restaking platforms offering high APYs or points, leading to a cumbersome process that involves multiple transactions and difficulty in switching between platforms.

Cross-Chain Costs: DeFi users often distribute assets across sidechains and Layer 2 (L2) solutions to maximize rewards. However, this strategy comes with high gas fees for bridging assets, making approvals, and depositing into liquid staking and restaking platforms. The complexity and cost of these steps discourage users from contributing to mainnet security.

Proposed Solution

Restaker addresses these challenges through a comprehensive set of features and solutions:

Diversified Restaking Aggregator: Restaker enhances Ethereum validator diversity by allowing users to split assets between different protocols and market depths. This approach minimizes restaking risks for both stakers and the networks they support.

Optimal User Experience: Restaker simplifies the staking process. Users no longer need to monitor multiple protocols; instead, they can deposit assets into 4-5 platforms with just one click.

Increased Profitability: By diversifying exposure across various protocols, users can boost their reward margins. Restaker allows users to earn extra yield and accumulate points from all platforms where their assets are allocated.

Permissionless Innovation: Restaker is designed to be fully permissionless, enabling anyone to deploy a restaking strategy with customized terms, such as percentage-wise distribution of assets across platforms. This flexibility allows users to optimize their staking experience based on their risk-reward preferences. Morevover, all deposits, reward distributions, and withdrawals are managed by smart contracts, ensuring a non-custodial staking experience.

Cross-Chain Feasibility: Restaker seamlessly integrates with L2s and sidechains, enabling users to deposit into restaking platforms using any token from any chain. Furthermore, the aggregator handles all bridging and staking steps, simplifying the process for users.

dETH - A Liquid Derivative Token: Restaker introduces dETH, a liquid derivative token that represents staked ETH within the aggregator. dETH enables users to leverage staked ETH in DeFi, with the underlying Liquid Restaking Tokens (LRTs) driving its value.

How Restaker's Liquid Restaking Aggregator Works

Restaker offers two types of strategies:

1. Default Strategy: Created by the protocol, this strategy distributes user assets across different restaking platforms. Users can mint dETH, which represents staked ETH/LRT in the default strategy, and earn ETH rewards from their validators.
2. User Strategy: This strategy allows users to choose their preferred restaking platforms based on risk preferences. While staking in user-defined strategies does not mint dETH, users receive minted Restaked Tokens (e.g., rsETH, eETH, rstETH) directly in their wallets.

Users can select a token on any available chain within the aggregator and choose their desired restaking strategy (e.g., 25% Ether.fi, 30% Renzo, 55% Puffer). The aggregator then swaps the token on the desired chain, bridges it to the relevant restaking platform's chain, and stakes the asset according to the selected strategy.

Key Components

• Swap/Bridge Aggregator Contracts: These contracts are responsible for swapping user assets if necessary and bridging them to the native chain of restaking platforms.
• Restaking Strategy Contracts: These contracts manage individual strategies where users deposit their assets.

Workflow

1. The user selects the source chain and desired asset and if it’s other than mainnet only then the asset will be transferred to a swap aggregator/bridge adapter which will handle both operations and process it to the mainnet.

Note: Trusted 3rd party swap aggregators (e.g. 1inch, OKX) & bridges (Wormhole, LayerZero) will be integrated into the adapter.

2. If the user is already on mainnet then soon after staking in the strategy they can receive the receipt of the staking strategy

Protocol Fee

The protocol will apply a fee percentage for all deposits in staking strategies. The fee can be changed by the DAO pending a successful vote.

What Makes Restaker Unique?

1. Protocol offers unique strategies that can't be found elsewhere, and is often the first to market with new and exciting yield opportunities & rewards.
2. Stakers can hold multiple LRTs under the single derivative token which excludes the need to hold all the tokens separately. Additionally, they can use it directly in other trading DeFi solutions while having the best of both worlds.
3. Save the effort in identifying the right platforms.
4. We offer multiple chain native restaking platforms that are not currently integrated with any protocol. This implies that users can contribute to the security other than mainnet. E.g. Babypie which accepts BTC as a stake token and offers AVS to take benefit from it).

Development Roadmap

Phase 1: Website and documentation development.
Timeline: 15 days

Phase 2: UI/UX design, UI development, contract development for three major restaking platforms, bridging, unit testing, and QA of both UI and contracts.
Timeline: 2 months

Phase 3: Audit and beta testnet launch with the community.
Timeline: 20 days

Conclusion

Restaker is committed to permissionless innovation on Ethereum, programmatically building trust in the ecosystem. By promoting widespread adoption of these technologies and platforms like Ether.fi and Puffer, Restaker aims to facilitate user engagement while protecting them from protocol-related risks. Restaker is set to revolutionize the staking landscape, offering users a more secure, diversified, and profitable staking experience.

Also read: Swoop: An Asset Consolidation Layer on Top of Wormhole