Crypto Restaking 101 – Brian Rose & Joao Simoes
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we’re super excited to be part of of
this journey with you man so let’s jump
in and maybe we start simple here right
what is reaking and maybe to go on that
Journey maybe we even have to back up
and say what is staking right maybe we
start and maybe explain it to people who
might be newish to this ecosystem so how
do you do that yes yes so that is
actually there is a very simple way to
explain this so staking is actually um
so yeah Tak me a little bit of backing
up so first uh in the traditional
Finance World which is already a field
that is being developed for hundreds
thousands of years right versus crypto
that exists for 10 plus years there is
so much things in Defi and crypto that
need to be built to need to be made
right so we in defi we are looking at
traditional finance and other
instruments and thinking like what can
we do to enhance and to make a better um
products Financial products because defi
is finan so we are building Financial
products so and if you see in defi there
was nothing that resembled for example a
mortgage and that’s exactly what he’s
taking in a very simplistic terms so
with a mortgage you have your house you
stake your house you put it there right
and in exchange you receive liquidity
right that’s the same thing as liquid
staking so you stake your if and in
exchange you receive liquidity a liquid
token so that’s the same thing and
reaking is the concept of double
mortgage which exists in the US in
Europe I believe it’s illegal but in the
US is a very common practice so you are
staking your house twice and getting
double the liquidity and with rest
staking the same thing you are staking
your e twice and getting double uh
getting the liquidity on top of that and
how do you get the yield also on top of
that very simple so your house will act
like a savings account so when you are
putting your money in a savings account
you lock in your uh dollars or euros and
you are receiving a yield by staking
your Euros or dollars and as liquid
reaking is exactly the same thing when
you stake you are saving your eth on a
savings account and because of that
you’re receiving uh yield on top of that
so in a nutshell that’s it you are
staking your house or staking your e
getting yield and getting a liquid token
on top of that as liquidity so in a very
simplistic terms in just like what five
minutes this is raking okay now let’s
just talk quickly about um ethereum
staking so in you know blockchain and
crypto assets we have something we kind
of call the Blue Chips of crypto and
that’s usually considered Bitcoin which
has a market cap of about 1.3 trillion
and eth which is about just under half
half a trillion right now those are by
far the biggest assets the ones with the
greatest history corre uh the biggest
user base right now Bitcoin is really
kind of digital gold it is his own
network it’s really decentralized um and
it’s still on proof of work but ethereum
recently moved to proof of stake about a
year ago and by doing so people that
owned chunks of ethereum I think it was
32 ethereum would actually get you a
node where you could verify transactions
they started getting yield on ethereum
and this was something that makes it
very different than Bitcoin and you
could get I think about a 4% you know
annual yield for just taking your
ethereum and saying guess what um I’m
going to put it aside for a period of
time someone’s going to take that and
approve transactions with it right and
this asset is now going to give me a 4%
yield uh which was really interest
yes and again it starts to look more
kind of like a bond or a fixed income
yes yes it’s very similar to a bond so
each validator right now the yield is
about 4% per validator and uh going on
jumping on igen layer I know that we
will jump on IG layer eventually but
already starting this topic so what Igan
layer does and that’s why everyone is so
excited about it is that when you
restake the second layer I layer is
actually built that your second layer
you can have multiple validators inside
so you when you st on the second layer
it goes to haen pod which is the second
validator aggregator of validators and
inside you can have multiple validators
so your second stake actually is divided
in multiple
stakes and each if each validator has
the 4% as we have now as a market
Standard this means that you stake once
get four you go to igen layer and inside
the igen Pod let’s say that you st on
two or three validators this means that
you can have four plus four plus 4 then
you are hitting that sweet sweet spot
that everyone is excited about meaning
that Lio staking or rocket pool staking
which is the first layer is no longer
attractive why should I get four when I
can get my e on a second layer that will
divide on multiple validators and that
can get me 12 18% yields amazing I want
that everyone wants that and this is the
headline that gets everyone sitting up
in their seats because 4% annually is
not a bad return although these days
compared with the treasury curve it’s
not exciting used to be more more
exciting if rates drop this year which
we think it will it’ll look better but
it doesn’t resonate as much as 8% or
12% to continue watching the rest of the
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CEO of Genesis Liquid Restaking Protocol
Today’s livestream features a man who is on a mission to transform the world of finance and technology by delivering a bespoke staking experience. João Simões is a blockchain expert, cryptocurrency pioneer and business leader who is blending his vast experience in both traditional finance and digital currency.
João is the co-founder and CEO of GenesisLRT, an innovative protocol leveraging Eigenlayer technology to redefine the landscape of decentralised finance. Through GenesisLRT, João aims to transform the way we interact with finance, ushering in a new era of security, trust, and transparency on the Ethereum network.
João’s journey into the world of blockchain began with the now customary interest in Bitcoin. This belief led João to found BitMasters, Portugal’s first Bitcoin mining cryptocurrency firm – and an early testament to his entrepreneurial spirit and foresight.
In addition to his role at GenesisLRT, João serves as the DeFi Business Developer at Tagus Labs, a Venture Studio based in Dubai, where he continues to push the boundaries of innovation in the crypto space.
Equally, as a Professor on the Global MBA program at Deakin University, Australia, João shares his expertise, teaching corporate finance remotely while also advising on a range of innovative Web3 projects, demonstrating his commitment to education and mentorship.
João’s previous experience as an executive in a private equity fund focused on energy and infrastructure projects in emerging markets where his insights and financial prowess played a pivotal role in driving sustainable development initiatives, and provided him with invaluable experience at the intersection of finance and technology.
Amidst his multifaceted career, João’s profound belief in the transformative potential of technology is unwavering. This conviction ultimately led to his role as the CEO and co-Founder of GenesisLRT.
Positioned as an Ethereum restaking protocol, GenesisLRT stands at the forefront of innovation, empowering investors to maximise their earnings and bolstering the security of the Ethereum network.
The GenesisLRT framework operates as a liquidity aggregator within the EigenLayer ecosystem, offering investors a seamless pathway to stake their Ethereum and participate in network validation.
Through a meticulous process, GenesisLRT facilitates the conversion of staked Ethereum into genETH, optimising liquidity while ensuring capital efficiency. By leveraging advanced smart contracts and innovative protocols, GenesisLRT redefines the dynamics of staking, offering investors unparalleled opportunities for growth and yield optimisation.
João’s vision for GenesisLRT extends beyond mere financial innovation; it embodies a paradigm shift in the way we perceive and interact with technology. With only a handful of companies operating in the LRT space, things certainly look promising from the outside.
I’m excited to be joined by João in the London Real hotseat, he’s a charismatic personality and big thinker, who is determined to grow the space. As he continues to push the boundaries of innovation and disruption, João remains steadfast in his commitment to reshaping the future of finance and technology.