How LRTs Work
Liquid Restaked Tokens (LRTs) like czBNB operate through a combination of smart contracts and operator nodes, ensuring efficient and secure restaking strategies. Here’s a step-by-step breakdown of how LRTs function:
Deposit and Minting: Users deposit staked assets (BNB or LSTs) into the Corez protocol.
Token Generation: In return, users receive an equivalent amount of czBNB, which represents their stake.
Allocation: The deposited assets are distributed to selected Node Operators, who utilize these assets for various restaking activities.
Reward Accumulation: As the Node Operators generate rewards from their services, these rewards accumulate in the czBNB contracts.
Value Reflection: The value of czBNB tokens adjusts to reflect the underlying assets and the accumulated rewards.
Liquidity and Integration: Users can trade czBNB tokens on AMMs for immediate liquidity or redeem them for the underlying assets. Additionally, czBNB can be used within DeFi applications for further financial strategies.
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