Adrastea has redefined restaking by introducing Liquid Restaking in collaboration with Solayer. The core principle is to simplify restaking and make it liquid. Adrastea routes liquidity through Solayer’s architecture into the most optimal AVSs using a smart engine, providing users with the Liquid Restaking Token - lrtsSOL (Liquid Restaking Token for sSOL).

Key Benefits of Liquid Restaking with Adrastea:

• Maximized Rewards: Earn rewards from Solayer, current AVS delegations, Adrastea, and its DeFi partners (e.g., lending, leverage, liquidity pools, and more).

• DeFi Ecosystem Utility: Utilize the liquid token lrtsSOL seamlessly across the DeFi ecosystem.

• Smart Delegation: Automatic delegation to the best-performing AVSs via Adrastea’s engine.

FAQ

1. What tokens can I restake with Adrastea?

You can currently restake SOL, sSOL, SonicsSOL.

2. Will restaking with Adrastea still earn Solayer rewards?

Yes, restaking through Adrastea continues to earn Solayer rewards, which will be distributed directly to you through Adrastea.

3. Why restake with Adrastea? How does sSOL compare to lrtsSOL?

Restaking with Adrastea unlocks delegated liquidity, providing you with a liquid token (lrtsSOL) that can be used across the DeFi ecosystem. By holding lrtsSOL, you gain exposure to all rewards from Solayer, AVSs, and additional rewards offered by Adrastea. lrtsSOL represents a liquid, delegated version of sSOL.

4. Are there any special campaigns or additional rewards with Adrastea?

Yes, you can retain all existing rewards and earn additional incentives by engaging with Adrastea’s DeFi partners. Special campaigns are regularly scheduled—stay updated by joining their Discord or following them on Twitter.

Important Links

https://app.adrastea.fi/liquid-restaking
https://x.com/adrasteaFinance/
https://discord.gg/adrasteafinance

Now let’s deep dive into the Liquid Restaking

Key Takeaways

1. Staking: Ethereum’s 2022 transition to Proof-of-Stake (PoS) revolutionized blockchain technology by introducing an efficient and inclusive mechanism for transaction validation, setting a new standard for scalability and user participation.
   
   

2. Liquid Staking: Protocols like Lido (Ethereum) and Marinade (Solana) pioneered the issuance of Liquid Staking Tokens (LSTs), enabling staked assets to retain liquidity and participate in DeFi ecosystems, unlocking opportunities like yield farming and lending.
   
   

3. Restaking: Platforms like EigenLayer (Ethereum) and Solayer (Solana) advanced staking further with Restaking, allowing staked assets to secure additional networks and Actively Validated Services (AVSs), enhancing blockchain security while offering extra rewards.
   
   

4. Liquid Restaking: ether.fi introduced Liquid Restaking Tokens (LRTs), providing liquidity for restaked assets and maximizing capital efficiency, thereby enabling broader DeFi utility.
   
   
   

5. Adrastea on Solana: Simplifies Liquid Restaking by offering seamless management of restaking positions, optimized reward distribution, and liquidity through its lrtsSOL token, solidifying its role as a leader in Solana’s DeFi landscape.

Staking: The Core of Modern Blockchains

Staking has become a foundational element of blockchain technology, gaining significant momentum with Ethereum’s “The Merge” upgrade in mid-2022. This pivotal transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) introduced a more efficient, scalable, and inclusive consensus mechanism. Under PoS, users can validate transactions and secure the network by staking the blockchain’s native token, making it simpler for participants to contribute to network security.

This innovation not only increased network scalability but also broadened user participation, establishing PoS as a critical feature of leading blockchains such as Solana, BNB Chain, and Sui.

Liquid Staking: Unlocking Liquidity

While traditional staking secures networks effectively, it comes with a significant limitation: liquidity constraints. Staked tokens are typically locked for a defined period, restricting their use in other financial activities.

To address this challenge, Liquid Staking protocols like Lido on Ethereum and Marinade on Solana introduced a revolutionary concept. These protocols issue Liquid Staking Tokens (LSTs), which act as receipt tokens representing staked assets. Notable examples include stETH (Lido Staked ETH) and mSOL (Marinade SOL).

LSTs unlock liquidity by allowing users to leverage their staked positions within the decentralized finance (DeFi) ecosystem. This innovation enhances capital efficiency and expands the utility of staked assets, enabling participation in activities such as yield farming, lending, and other DeFi applications. Liquid Staking is a game-changer for blockchain ecosystems, providing a seamless blend of security, liquidity, and utility for staked assets.

Restaking: Enhancing Blockchain Security 

The evolution of staking has paved the way for Restaking, a groundbreaking concept introduced by EigenLayer on Ethereum. Restaking protocols enable users to leverage their staked tokens to enhance the security of additional networks, known as Actively Validated Services (AVSs). These networks require their own distributed validation mechanisms, and Restaking provides a way to support them effectively.

Types of AVSs:

• Exogenous AVSs: External systems like bridges, oracles, and off-chain services.

• Endogenous AVSs: On-chain applications, such as decentralized applications (dApps), that operate directly within the blockchain ecosystem.

Restaking not only bolsters the security of multiple networks but also offers users additional rewards for their participation. For instance, Solana’s Solayer protocol emphasizes Restaking for Endogenous AVSs, supporting platforms such as SonicSVM, Bitget, Hashkey, Bonk, and AltLayer. This approach enhances network resilience while fostering collaboration and innovation across blockchain applications.

Restaking exemplifies how users and protocols can work together to amplify security, unlock new use cases, and strengthen the interconnected fabric of blockchain ecosystems.

Liquid Restaking and the Emergence of LRTs 

As DeFi evolves, Liquid Restaking has emerged as a transformative step in maximizing capital efficiency, much like the shift from traditional staking to liquid staking. Liquid Restaking protocols introduce Liquid Restaking Tokens (LRTs), which represent a user’s restaked positions and delegations to specific Actively Validated Services (AVS). These tokens provide liquidity for restaked assets, allowing users to earn additional rewards while utilizing their assets across the broader DeFi ecosystem.

Notable examples of Liquid Restaking protocols include ether.fi on Ethereum (leveraging EigenLayer) and Adrastea on Solana (built on Solayer). By combining enhanced yields with liquidity, LRTs address the liquidity limitations of traditional restaking models, unlocking new opportunities for users to optimize their strategies and maximize returns within DeFi.

Adrastea: Simplifying Liquid Restaking on Solana 

Adrastea is a trailblazing Liquid Restaking protocol on Solana, seamlessly integrated with Solayer. Designed for simplicity and accessibility, it empowers users to manage their restaked positions with ease. With a single click, users can unlock rewards across multiple platforms, including Solayer, AVSs (currently Sonic), and Adrastea, all while maintaining liquidity through the innovative lrtsSOL token.

Restake Program

The Restake Program is the core component of the Adrastea protocol, managing user assets with efficiency and transparency. It facilitates deposits, mints corresponding lrtsSOL tokens, handles liquidity delegation/undelegation to AVSs, and processes withdrawal requests. The value of lrtsSOL is dynamically priced through internal calculations, maintaining a 1:1 ratio with sSOL to ensure accurate value representation.

Additionally, the program tracks user withdrawal requests, maintaining reserves to meet claims promptly. These requests are periodically reviewed and executed to deliver a seamless user experience.

Liquid Restaking Workflow

The process of Liquid Restaking in Adrastea can be broken down into the following steps:

1. Deposit

Users can deposit Native SOL, sSOL and SonicsSOL into the Adrastea protocol.

2. Minting lrtsSOL

The program dynamically calculates the current price of lrtsSOL and mints an equivalent amount to the user’s wallet as a representation of their restaked position.

3. Restaking and Delegation via Solayer

• Deposited SOL is staked into its corresponding staked form, sSOL, through Solayer’s infrastructure.

• Adrastea delegates sSOL to endoAVSs.

• Solayer mints Delegate Tokens, which serve as proof of restaking and are securely stored in Adrastea’s vault. Users can exchange or withdraw by burning their lrtsSOL at any time.

4. Withdrawal

• When a withdrawal is initiated, the program burns the equivalent amount of lrtsSOL from the user’s wallet.

• Liquidity is unstaked from Solana validators if the user opts to convert their restaked position back into SOL.

• Due to the structural requirements of Solana validators, the withdrawal process is subject to a waiting period until the end of the current Epoch, after which users can claim their unstaked SOL.

Key Features of the Restake Program

This process ensures:

• Security: All transactions are transparently logged and backed by robust smart contract architecture.

• Efficiency: Capital is continuously restaked and maximized through optimal AVS delegation.

• Liquidity: The program provides liquid lrtsSOL tokens, enabling users to access their capital without locking it up.

• Flexibility: Users can withdraw their funds or leverage lrtsSOL across the DeFi ecosystem anytime.

Adrastea’s Liquid Restaking system combines ease of use, capital efficiency, and broad DeFi composability, redefining staking for a modern decentralized finance ecosystem.

Reward Module

The Reward Module is a core component of Adrastea’s ecosystem, designed to ensure the efficient and transparent distribution of rewards generated through restaking activities. By leveraging the protocol’s internal logic, it monitors changes in the lrtsSOL balances in user wallets, enabling seamless on-chain operations and equitable reward distribution.

How Rewards Are Distributed

1. Reward Pool Contribution

Rewards are allocated based on each user’s share of the Reward Pool, calculated by considering both the duration of their holdings and the amount of lrtsSOL in their wallet. This dual-factor approach ensures that users who contribute more liquidity for longer durations are rewarded proportionally.

2. Reward Allocation

Once user rewards are calculated, the total rewards earned through restaking are transferred to the protocol’s Reward Pool address. These rewards are then distributed among participants based on their contributions to the pool, ensuring fairness and accuracy.

Key Benefits for Users

• Dual Reward Sources: Users earn rewards from both Solayer and the (AVSs), enhancing yield opportunities.

• Fair Distribution: The module’s logic guarantees rewards are distributed in proportion to users’ contributions, promoting equitable incentives.

• On-Chain Transparency: All operations are executed and logged on-chain, providing full visibility into reward calculations and distributions.
  
  

Outcome

The Reward Module creates a streamlined and fair mechanism for distributing restaking rewards, incentivizing long-term participation and larger contributions. Users benefit from optimized earnings while enjoying transparency and trust in the reward allocation process.