RT @AreaDotClub: Lido created the first staking primitive. EigenLayer created restaking leverage. But both abstracted risk. They gave you….

Lido priced ETH security. EigenLayer leveraged it. It's time AREA breaks it down into composable units.

This also introduces real markets:. → Curve steepeners: DA vs ZK yield curve arbitrage.→ AVS volatility indices.→ LAT vaults segmented by uptime, revenue, or validator decentralization.→ Institutional portfolios that ladder AVS risk by maturity. LRTs can’t support any of.

This changes everything. You’re not “earning ETH yield.”. - You’re underwriting data availability. - You’re securing proof verification. - You’re pricing sequencing trust assumptions. LATfi shifts you from passive staking into infrastructure-aware capital deployment. Every.

What does LATfi actually enable?. The same way stETH unlocked LSDfi, LATs unlock:. → AVS-indexed structured products.→ Safe/fixed vaults backed by low-slash AVSs.→ Floating vaults on volatile LATs.→ Options on ZK LAT volatility.→ LAT-based collateral layers for stablecoins.

LATs fragment the restaking base layer into programmable security primitives. Each LAT is an AVS-specific yield instrument:. - daLAT = EigenDA.- zkLAT = ZK proof AVS.- rollLAT = sequencing layer. For the first time, you can separate:. → Risk exposure.→ Duration.→ Maturity.→.

Restaking introduces heterogeneity. Every AVS runs its own:. → Validator set.→ Uptime profile.→ Slashing conditions.→ Revenue stream.→ Risk-to-yield curve. But LRTs treat them all the same. One APY. One pooled asset. You can't build financial structure on top of.

LSDfi worked because stETH decoupled staking from lockup. You got early liquidity, tokenized collateral, and a base rate to build on. Pendle, Gearbox, Curve, all ran on one assumption: stETH = standardized yield. It was clean, composable, and context-free. But restaking breaks.

Lido created the first staking primitive. EigenLayer created restaking leverage. But both abstracted risk. They gave you liquidity and yield, but no control over what you were securing, or how it was priced. That phase is over. A thesis. 🧵 👇.

This is where restaking goes next. You want clarity. You want segmentation. You want risk priced and surfaced. AREA gives you all three:. → LATs show you where your capital is deployed.→ Yield curves show you how the market values that risk.→ Indexes let you position against.

This also opens second-layer instruments:. → Curve trades between LATs.→ Index-based structured vaults.→ Option strategies on AVS category performance. In other words: the foundation of a real fixed income market, built on programmable security primitives.

And if you’re managing serious capital, this unlocks real optionality. - You can rotate between AVS classes. - You can hedge ZK volatility while staying long DA. - You can lend against a safe yield LAT without worrying about correlated slashing risk. You’re no longer holding.

Once AVSs are isolated by categories, you can bundle them with intent. We’re building toward AVS Indexes:. → DA Index for high-throughput, low-volatility data layers.→ ZK Index for frontier proof generators.→ Safe Yield Index for institutions managing treasury capital. These.

- EigenDA might offer 4.2% with zero slashes in the last 6 months. - A ZK AVS might pay 9.8%, but with volatile node uptime and fewer active restakers. Different maturity. Different volatility. Different trust assumptions. Now, you're not asking “what’s the restaking APY?”.

Pooled LRTs blur everything into one number: APY. - Some AVSs are live, production-grade, and paying real fees. - Others are still in testnet, running unproven slashing logic, or managed by validator sets that haven’t stabilized. Each AVS has its own yield, risk, and time.

When you restake ETH, you’re taking a position on the reliability of an AVS. But DA AVSs like EigenDA don’t carry the same risk as a new zk coprocessor or MPC oracle. So, why are we pricing them the same? We need to index AVSs and segment yield. A thread. 🧵👇.

Institutions don’t stake, they allocate. AREA gives them the control.

Who's building this?. Bundle AVSs into thematic or risk-weighted index tokens so traders, funds, and DAOs can hold diversified restaking exposure with one asset.

To give people more options, segment AVSs into categories:. - DA Index = daLAT + dataLAT + nodedLAT. - ZK Index = proofLAT + zkLAT. - Safe Yield Index = low-slash LATs only. Let retail and institutions buy restaking exposure with known risk profiles. That's the next step of.

Lido made ETH liquid. EigenLayer made ETH leveraged. LATs will make ETH allocable.