Liquid Restaking

Within the innovative framework of Primis Protocol, PRM stands out as a meta-Liquid Staking Token (meta-LST) with the capability to transform into a Liquid Restaking Token (LRT). This transformation is facilitated through the process of depositing protocol and treasury assets into EigenLayer for liquid restaking.

Consequently, PRM takes on the additional role of an LRT, based on the LSTs that are restaked within EigenLayer. This dual functionality means that PRM not only acts as a yield token, allowing for concentrated yield through staking, but also benefits from the advantages associated with restaked LSTs. Moreover, the assets deposited by the protocol into bonds can similarly undergo restaking, further enhancing the protocol's yield-generating capabilities and offering a versatile approach to asset utilization within the Primis Protocol ecosystem.

A simple flow of the restaking process and future ability to mint prmETH to access the LRT

Restaking Rewards

During the process of restaking within the Primis Protocol, all Eigen Points earned are assimilated into the treasury as assets. Future actions, such as conversions or airdrops to the protocol's token, generate additional yield on top of the strategy yields. These yields, obtained retroactively when converted into non-LST assets within the treasury, provide further financial support for PRM without contributing to rebase rewards for PRM staking, unless they're exchanged for additional LSTs, thereby enhancing the over-backing of PRM.

Ownership of PRM tokens grants exposure to the accumulating asset value backed by the treasury, which grows over time through the protocol's operations. The PrimisDAO governance system plays a crucial role in determining the utilization of these rewards, deciding whether to retain them as their native token form (e.g., EigenLayer protocol tokens) or convert them into more LSTs to strengthen PRM's backing further. Should the DAO opt to convert these tokens into LSTs, the added value from such conversion will be factored into the rebase calculation for PRM staked, thus enhancing the yield for staked PRM based on the new value added to its backing.

This structure allows the Primis Protocol to dynamically adjust its treasury strategy based on governance decisions, balancing between direct yield enhancement and strengthening the financial foundation of PRM. Restaked LST yields, recognized as Treasury Returns, are integral to recalculating rebase rewards, ensuring that the treasury's growth directly benefits the stakeholders.