📜Lair Finance Litepaper

v1.1 - last edited: 2025/04/24

Abstract

Lair Finance is a cross‑chain liquid restaking protocol that amplifies native staking yields and unlocks liquidity across multiple Layer‑1 blockchains. By issuing yield‑bearing Liquid Restaking Tokens (LRTs) such as rstKAIA on Kaia and LrBGT on Berachain, Lair Finance enables users to compound rewards, deploy capital in DeFi, and capture additional incentives—all while contributing to validator security. The $LAIR token is the connective tissue powering incentives and value capture across the expanding Lair ecosystem.

Each Layer-1 blockchain has unique characteristics and focuses—some target consumers, others emphasize trading or DeFi—and Lair connects these diverse ecosystems to accelerate their growth collectively.

Unlike simple restaking solutions, Lair designs chain-optimized frameworks that amplify the growth potential of each underlying blockchain. The $LAIR token is the connective tissue powering incentives and value capture across the expanding Lair ecosystem, driving a self-reinforcing value flywheel that benefits all participants.

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1. Introduction

1.1 Background

• Staking secures Proof‑of‑Stake (PoS) networks but locks capital.

• Liquid Staking Tokens (LSTs) free up liquidity yet leave native yields under‑optimized.

• Restaking (staking an LST again) optimizes and maximizes yields, and—when deployed cross‑chain—seamlessly connects multiple ecosystems.

1.2 Vision

Lair Finance delivers cross‑chain liquid restaking—a frictionless layer that:

1. Autocompounds validator rewards.

2. Issues fully liquid LRTs usable anywhere in DeFi.

3. Channels value back to $LAIR holders via protocol incentives.

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2. Protocol Architecture

2.1 Liquid Restaking Tokens (LRTs)

Chain	Underlying LST(s)	LRT Symbol	Primary Yield Source
Kaia	stKAIA (+ future sKLAY variants)	rstKAIA	Kaia validator rewards + LAIR emissions
Berachain	iBGT (Infrared)	LrBGT	BGT validator rewards + PoL farming
Future	TBD (Injective, Somnia…)	…	Native validator & partner yields

2.1.1 rstKAIA Mechanics

• Pair stKAIA + $LAIR to mint.

• LAIR emissions streamed to the rstKAIA vault.

• 7‑day unbonding period, slippage‑protected.

2.1.2 LrBGT Mechanics (Berachain)

1. Deposit iBGT (or BERA) to mint LrBGT.

2. Behind the scenes, Lair strategically manages positions to generate additional yields.

3. LrBGT stays fully liquid for Proof‑of‑Liquidity (PoL) vaults and can be redeemed for the underlying assets.

2.3 Lair Vaults (Kaia)

Lair Vaults introduce a triple‑yield layer to rstKAIA on the Kaia chain:

• KAIA staking yield – baseline validator rewards (~6 % APY).

• LAIR restaking boost – additional LAIR streamed to vault depositors.

• Partner‑token emissions – game‑token (or receipt‑token) rewards sourced from each Active Vault Service (AVS) partner.

Restaking Vaults are dedicated liquidity pools aligned with Lair’s LINE‑game partners. When rstKAIA is deposited, the underlying stKAIA continues to restake while the protocol simultaneously farms the partner’s game token. Season 1 features seven partnered studios, each with its own vault and emission schedule.

If a partner token is not yet live, users receive a transferable receipt token (e.g., bBOMBIE) that converts 1:1 into the real token upon listing.

Lair Active Vault Token (receipt) If a partner token isn’t live yet you’ll receive a 1:1 receipt (e.g., bBOMBIE). When the token lists, the studio airdrops the real token to receipt holders. Receipts are transferable—but check liquidity before swapping.

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3. Tokenomics ($LAIR)

3.1 Overview

• Fixed supply: 1 000 000 000 $LAIR.

• Inflation: None; emissions come from the ecosystem fund.

3.2 Allocation

Category	% of Supply
Community	40 %
Ecosystem Fund	30%
Investors	14 %
Core Contributors	13 %
Strategic Partners	3 %

3.3 Utility

1. Restaking Collateral – Mandatory pairing with LSTs (e.g., stKAIA) to mint rstKAIA.

2. Fee Accrual – Value capture across L1 ecosystems aligned with market demand for $LAIR through treasury-driven mechanisms

3. Governance Participation – DAO proposals and validator whitelisting.

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4. Ecosystem & Partnerships

• 1 M+ LINE mini‑dApp users onboarded via casual gaming.

• Backers: Gate Labs, MEXC Ventures, Kakao Ventures, KB Bank, Wagmi Ventures.

• Infrared Finance: issuer of iBGT and strategic liquidity partner.

• Seven LINE games integrating LRT rewards.

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5. Legal Disclaimer

This document is for information purposes only and does not constitute financial, legal, or investment advice. $LAIR is not intended to be a security in any jurisdiction. Participation in Lair Finance is subject to market risk, smart‑contract risk, and potential total loss of funds. Always do your own research.

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6. Conclusion

Lair Finance merges the capital‑efficiency of liquid staking with the compounding power of restaking—cross‑chain and user‑centric. Powered by $LAIR, the protocol transforms idle staked assets into productive, liquid, and interoperable yield instruments. Join us as we build the liquidity layer for the next wave of DeFi.