What LATs Are and Are Not

It’s easy to assume that Liquid AVS Tokens (LATs) are just another type of Liquid Restaking Token (LRT). However, LATs are distinct in their underlying assets, the way they are generated and managed, and the unique benefits they bring to the EigenLayer ecosystem.

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What Are LATs

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LATs are Single-Asset Derivatives

While both LATs and LRTs are liquid (re)staking derivatives that generate additional assets on top of the existing EigenLayer ecosystem, LATs stand out as single-asset derivatives. This means each LAT is backed by a single AVS, whereas LRTs can represent the risk and return of multiple AVSs.

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LATs are Passive Assets

LATs can be considered passive assets because they do not require active management or decision-making from a DAO or strategy managers, unlike LRTs. LAT holders gain direct exposure to a single AVS, allowing them to manage their risk and return by choosing which AVS to stake in.

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LATs are Composable Assets

Building on the previous point, LATs serve as a base asset within the EigenLayer’s DeFi ecosystem. Users can create their own liquid restaking portfolios or even replicate a LRT structure with lower fees and greater control.

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What LATs Are Not

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LATs Are Not a Type of LRT

Liquid AVS Tokens are a new category of assets designed specifically for EigenLayer AVSs, offering unique utility not currently available in EigenLayer’s restaking ecosystem.

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LATs Are Not Baskets of Different AVS Yields

LRTs inherently diversify across multiple AVS and selected operators. In contrast, LATs represent the yield from a single AVS.

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LATs Are Not Permissioned Instruments

The creation of LATs is governed by the EigenExplorer community, allowing anyone to participate in the generation process. LATs are freely tradable on the open market, making them accessible and open to all.