The State of LST/LRT Capital Markets

Amplified not only simplifies the user experience but also unlocks billions in liquidity, enhances network security, positioning the protocol as a key driver in the evolution of DeFi 2.0.

Current challenges in LST/LRT markets include:

Key Issues

• Inefficient capital markets lead to underutilized assets

• Portfolio management complexity of DeFi strategies, protocols, and staking options limits broader adoption

• Traditional protocols fail to generate sustainable ETH-on-ETH yield

• Reliance on inflationary token incentives undermines long-term capital efficiency

Impact

• Investors face vulnerability to token devaluation and market corrections

• Economic structures remain fragile when token incentives fade

• Capital inefficiency persists across the system

• Idle assets miss productive opportunities

Market Evolution

The evolution from native staking to liquid staking and now to liquid restaking reflects progression toward:

• Greater capital efficiency

• Advanced risk pricing

• Development parallel to traditional financial markets

• Emergence of a crypto-native benchmark yield