Native vs liquid restaking

The Byzantine protocol uniquely enables both liquid and native restaking strategies.

Liquid restaking

Liquid restaking enables stakers to stake Liquid Staking Tokens (LSTs), stablecoins, or other ERC-20 tokens and earn additional rewards from restaking. This increases the utility and capital efficiency of the underlying tokens and is the simplest method of restaking.

Byzantine strategy vaults can be deployed with a wide variety of ERC-20 assets as underlying collateral tokens.

Native restaking

Native restaking enables stakers to stake and restake ETH in the same action. It functions as follows.

1. Staking ETH: Stakers stake ETH via the Byzantine vault. The validators are handled by an operator partner that the strategy manager can select.

2. Delegating staked ETH: Via Byzantine's smart contracts, validators containing staked ETH are automatically delegated to the trust marketplace the strategy manager selected. The staked ETH thus secure the strategy manager's desired AVSs & networks.

3. Earning restaking rewards!

Byzantine strategy vaults handle native restaking strategy via a community of permissioned Ethereum operators. At vault deployment, strategy managers are able to select specific operator partners if they wish.

Advantages of native restaking

Two-layered rewards: Stakers earn both staking and restaking rewards.

Risk isolation: While LSTs pool deposited assets, native Byzantine vaults use validators that are dedicated to the vault. Thus, staking and restaking risks and entirely isolated.

Increased transparency: Strategy managers and stakers have clear visibility and control over their dedicated validators.

Higher yield potential: By staking and restaking through one protocol, stakers are not required to pay multiple protocol's fees. Additionally, removing the need to integrate between protocols reduces friction and can increase capital efficiency.