# LRT Lending Market

Liquid Restaking Tokens (LRTs) are tokenized derivatives representing staked assets. LRTs enable you to unlock the liquidity of your staked asset while also earning staking rewards.&#x20;

When you stake $ETH to validate transactions on Ethereum and secure the network, your deposited $ETH is locked for a certain period. LRTs help you tokenize the staked $ETH into a derivative asset. The derivative token can be freely used across supported DeFi applications.

Here’s how LRTs work behind the scenes: &#x20;

1. Users deposit and stake their assets (e.g., ETH) with a liquid staking protocol.
2. The protocol issues LRT tokens (e.g., $ezETH) in a 1:1 ratio, representing the staked $ETH.
3. Users can trade, lend, or use these LRT tokens across their preferred DeFi applications while earning staking rewards.

In addition to staking rewards, users earn points from the respective liquid staking protocol and the partner protocols (if any).&#x20;

For example, if you restake $ETH on Renzo Protocol, you get $ezETH and EigenLayer points.&#x20;

### Benefits

* Earn staking rewards while using LRTs as collateral
* Earn additional points from liquid staking protocols
* Access liquidity without unstaking
* Dedicated LRT markets with boosted rewards

### ETH LRTs on ZeroLend  <a href="#lrtsonzerolend" id="lrtsonzerolend"></a>

ZeroLend features a dedicated ETH LRTs Market to help users leverage the emerging LRT trend and earn boosted rewards.

Here’s a list of ETH LRT assets listed on ZeroLend:&#x20;

| LRT Project | Native LRT Asset | Supported ZeroLend Market |
| ----------- | ---------------- | ------------------------- |
| Ethereum    | $ETH             | Ethereum                  |
| USD Coin    | $USDC            | Ethereum                  |
| Renzo       | $ezETH, $pzETH   | Ethereum, Linea, Blast    |
| Ether.fi    | $weETH           | Ethereum                  |
| Kelp DAO    | $rsETH           | Ethereum                  |
| Puffer      | $pufETH          | Ethereum                  |

***

## BTC LRTs on ZeroLend

ZeroLend supports Bitcoin Liquidity Representation Tokens (BTC LRTs) on mainnet, enabling Bitcoin holders to access DeFi opportunities without forfeiting staking or locking benefits associated with their BTC holdings.

### 1. Overview

BTC LRTs (e.g., cbBTC, eBTC, LBTC, MBTC, SolvBTC, WBTC) are tokens representing staked or wrapped BTC. These tokens accrue BTC-based rewards or yield while allowing users to participate in DeFi markets on ZeroLend.

### 2. Obtaining BTC LRT Tokens

1. **Select a BTC LRT**: Choose from supported tokens such as cbBTC, eBTC, LBTC, MBTC, SolvBTC, or WBTC.
2. **Acquire Tokens**: Obtain the chosen BTC LRT from the protocol or exchange where it is issued.

### 3. Accessing the BTC LRT Market

1. **Navigate to ZeroLend**: Go to the ZeroLend platform.
2. **Open the Bitcoin LRT Market**: Select the “Bitcoin LRTs Market” tab to view available BTC LRT assets.
3. **Review Market Data**: Each BTC LRT listing displays supply APY, borrow APY, total supplied, total borrowed, and other relevant statistics.

### 4. Supplying and Borrowing BTC LRTs

#### 4.1 Supplying BTC LRTs

1. **Select Token**: Choose the BTC LRT you currently hold (e.g., cbBTC, eBTC).
2. **Supply Tokens**: Click “Details” (or its equivalent) to supply your BTC LRT tokens.
3. **Earn APY**: Begin earning the displayed supply APY.

#### 4.2 Borrowing BTC LRTs

1. **Collateralize**: Ensure you have sufficient collateral on ZeroLend.
2. **Select Borrow Amount**: Choose a BTC LRT to borrow (e.g., cbBTC).
3. **Confirm Borrow**: This may facilitate strategies such as shorting an asset or deploying borrowed tokens elsewhere.

### 5. Leverage and Advanced Strategies

1. **the Pendle PT Tokens**: Check the compatibility of your BTC LRT with Pendle PT for additional yield strategies.
2. **Leveraging Solutions**: Explore tools like Contango for potential leverage (up to 10x), potentially increasing both BTC rewards and $ZERO token yields.

### 6. Ongoing Management

1. **Monitor APYs**: Track changes in supply APY and borrow APY; they fluctuate based on supply and demand.
2. **Manage Collateral**: If borrowing, monitor your health factor or loan-to-value ratio to avoid liquidation.
3. **Stay Informed**: Look out for new BTC LRT listings and updated rewards or APYs (e.g., “eBTC PT 27MAR25”).

### 7. Redeeming or Unwinding Positions

1. **Withdraw Supplied Tokens**: Withdraw your BTC LRT from ZeroLend when you are ready.
2. **Repay Borrowed Amount**: Repay any borrowed BTC LRTs to close your debt position.
3. **Redeem Native BTC**: Return your BTC LRT tokens to the issuing protocol to reclaim your original BTC plus any staking rewards accrued.

{% hint style="info" %}
Read our [Passive Strategies guide](https://docs.zerolend.xyz/tutorials/yield-strategies/passive-lrt-strategies) on LRTs to learn more.&#x20;
{% endhint %}


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