TLS - Trackr Liquid Staking Index

Diversified exposure to liquid staking and restaking

Liquid staking and restaking is booming. The sector has grown at a compounded annual growth rate of 100% and in total has accumulated over $50bn of TVL, making it the largest segment of DeFi.

Liquid staking is a major contributor to the security profile of Ethereum, the Layer 2s that rely on it, as well as alternative EVM blockchains like Polygon and Avalanche. The popularity of this segment is unquestioned with 1 in every 2 staked ETH being deposited into a liquid staking protocol.

Liquid restaking increases the productivity of staked ETH by repurposing it to support external systems (e.g., rollups, oracles) with an economic security layer. This helps solve the cold start problem that new networks face whilst also increasing the yield of staked ETH.

The Trackr Liquid Staking Index (TLS) will provide complete coverage of the major liquid staking and restaking tokens from across the EVM ecosystem through a single token. The index will be weighted by market capitalisation with a maximum cap of 15% per asset to avoid over allocating to the largest tokens.

The index will be rebalanced quarterly to adjust the composition of assets and ensure that the index continually adapts to changes in the sector.

Benefits of the Trackr Liquid Staking Index

TLS offers holders the following benefits:

Diversified exposure to liquid staking and restaking

TLS will automatically allocate capital across 4 different chains to the top liquid staking and restaking protocols . This spreads your risk and reduces your reliance on any single provider. In addition, it smoothes out the volatility associated with both the price and yield of any single token.

Higher yields

TLS is the first index to provide exposure to liquid restaking tokens which will amplify the yield of existing liquid staking tokens. In addition, the index’s multi-chain approach allows it to access higher yielding opportunities on other chains, increasing the overall yield of the index.

Improved network security

By enforcing a maximum weight of 15%, TLS will distribute more capital to smaller liquid staking protocols, increasing the diversity of node operators across the networks and improving security by reducing the control any single operator has.

How to buy

The Trackr Liquid Staking index is live on Arbitrum and available to buy through the Trackr website. TLS will be the first index to benefit from our innovative cash reserve system built directly into the index, keeping minting and redemption costs low.

In addition, the Ethereum Dencun upgrade, which has reduced Layer 2 transaction costs by up to 98%, ensures users are receiving the cheapest possible access to the index’s primary market.