Why YieldNest?
Last updated
Last updated
YieldNest is a next-generation ETH restaking yield optimizer powered by EigenLayer that offers users controlled, liquid, and risk-adjusted exposure to curated AVS categories. Its value proposition boils down to three fundamental advantages:
YieldNest helps restakers by abstracting away the often hidden complexities of restaking by offering a one-stop-shop liquid restaking protocol that is simple, transparent, safe, and easy to use.
While EigenLayer’s delegation model allows restakers to participate in EigenLayer without acting as operators themselves, it leaves them out to dry regarding the due diligence required to select operators with a solid track record of successfully fulfilling their obligations.
This is where YieldNest steps in: it offers users a one-click restaking solution that takes care of the due diligence on behalf of the restakers. In the background, YieldNest employs a cutting-edge risk management system for the operator and AVS selection built and operated by LlamaRisk, an independent team of experts in risk and research.
This means that YieldNest works exclusively with carefully vetted operators with impeccable operating records, minimizing the risks of slashing and ensuring that restakers’ funds are in good hands.
Unlike restaking directly with EigenLayer, which locks users' funds in the protocol and encumbers them with a minimum withdrawal period of seven to ten days, restaking with YieldNest is totally liquid.
Namely, YieldNest restakers receive Native Liquid Restaking Tokens (nLRTs) and Liquid Restaking Tokens (LRTs) representing their restaked, yield-generating ETH or ERC20 tokens. The users can then use these tokens across various DeFi protocols, including for trading on decentralized exchanges, lending or using them as collateral on decentralized money markets or participating in YieldNests’ liquidity mining program.
Beyond taking care of the complex due diligence required for selecting trustworthy EigenLayer operators, YieldNest gives restakers controlled exposure to curated AVS categories.
Specifically, it generates nLRTs and LRTs that wrap around Isolated and Basket AVS categories. The Isolated AVS categories allow YieldNest users to restake across a single specific AVS category, including rollups, AI, oracles, decentralized RPC infrastructure, and DA layers. On the other hand, the Basket AVS categories allow users to diversify and restake across multiple AVS categories—all by acquiring a single nLRT or LRT.
For example, YieldNest’s ynETH LRT gives users balanced exposure to a pre-selected, dynamically curated basket of AVS categories, which are accessed through a carefully curated set of EigenLayer operators who specialize in each category.
On the other hand, the ynAI LRT gives users focused exposure to a carefully curated portfolio of AVS within the AI category. This allows users to better manage risk and gain exposure only to AVS verticals that they’re bullish on via operators that specialize in that vertical.
