Restaking is the next evolution of staking, introducing a new primitive in cryptoeconomic security that enables the reuse of ETH and extends its cryptoeconomic security to an arbitrary number of applications. 

In tandem with this innovation, a new class of tokens has emerged: liquid restaking tokens (LRTs). These assets provide users with a liquid representation of their restaked ETH, unlocking additional liquidity and yield-generating opportunities. The recent surge in LRT launches, however, has led to fragmentation in liquidity, yield, and risk considerations. Users must now navigate complexities such as AVS rewards, slashing risks, and liquidity constraints when selecting an LRT to mint.

Eclipse’s Unified Restaking Token, tETH

Eclipse is launching a unified restaking token, tETH, in partnership with Nucleus to tackle the above problems. tETH combines the largest yield-generating protocols on Ethereum into one easy-to-use default yield token. To get started, mint tETH at teth.eclipse.xyz. 

Users can now earn restaking rewards without the complexity of fragmented liquidity, time, and attention. Onchain users finally have an index LRT token that diversifies risk and maximizes reward exposure. This is just the beginning of our LRT hub, dedicated to simplifying the process of earning rewards for users and unifying liquidity across LRTs. 

The five LRTs that users can deposit to mint tETH are:

1. EtherFi - eETH
2. Renzo Protocol - ezETH
3. Swell Network - rswETH
4. Dinero - steakETH
5. Puffer Finance - pufETH

tETH Mechanisms

Upon depositing an eligible LRT, tETH is minted on Ethereum mainnet and bridged to Eclipse using Hyperlane. tETH is an exchange rate bearing token, similar to the architecture of Compound cTokens and Lido's wstETH. Barring any slashing events, the exchange rate to ETH increases over time from staking yield. However, non-ETH based yield, such as AVS rewards, will not be reflected in the exchange rate. Instead, there will be a claim interface through which users can claim these rewards. User rewards will be periodically mapped to a holder address, and a user will get the rewards for as long as they hold the asset. 

Users can redeem tETH through two methods. The first by redeeming the underlying collateral, where a user can redeem tETH for an LRT of choice at full value on Ethereum mainnet. The second method is an expedited redemption, where solvers will fill orders for users to redeem tETH quickly  on Ethereum mainnet or Eclipse. 

An exchange rate oracle tracks the exchange rate of tETH to ETH, querying the underlying ETH balance of each LRT in the basket, with the exchange rate oracle utilized during minting and redemption. Initially, Nucleus will operate the exchange rate oracle, but it will be decentralized over time. 

In the event of a price depeg of any of the LRT tokens, the exchange rate oracle solely tracks the underlying ETH balance of LRTs deposited, thus making tETH impervious to market conditions.

In the case of a slashing event, the exchange rate oracle would update to reflect the amount of ETH that was slashed, but the loss would be capped to the exposure of the underlying LRT to the entire pool.

tETH on Eclipse

tETH represents our first step in creating an LRT hub on Eclipse, allowing users to earn extra yield on their LRTs through our LRTFi ecosystem, all while diversifying their risk and maintaining exposure to multiple LRT tokens and potential LRT/AVS airdrops. In the future, we will also release a SOL unified restaking token.

Over time, Eclipse will be the home of SOL-ETH DeFi, the first ecosystem where users can have exposure to both assets simultaneously. Various DeFi primitives will offer a wide range of productive yield opportunities. This will be supplemented by deep SOL-ETH liquidity, providing traders with a liquid venue to swap between these two assets onchain.

The Future
Eclipse will continue to expand our LRTFi ecosystem to provide ETH and SOL LRT holders with a plethora of opportunities. New LRT DeFi primitives on Eclipse allow users to leverage, hedge, insure, and use their LRTs in innovative ways. Eclipse will be the LRT hub of crypto.

Eclipse
Eclipse is Ethereum's first L2 powered by the Solana Virtual Machine, combining the speed of Solana with the liquidity of Ethereum. This novel architecture enables a high-performance L2, with access to Ethereum's liquidity, while maintaining the hard constraint of verifiability. Eclipse gives developers a general-purpose L2 capable of massive scale that can power the next generation of decentralized applications. To learn more about Eclipse, visit our website, and join the community on Twitter and Discord.