Restaking

What is Restaking?

Restaking is like giving your already‑staked tokens a second job — so they can earn extra rewards while still doing their original work.

How It Works

You’ve staked ETH to help secure the Ethereum network (and you’re earning ~4% APY). Now, instead of just leaving it there, you restake it on another protocol (like EigenLayer), which uses it to secure other systems — and rewards you even more! So now your ETH is:

• Helping Ethereum

• Supporting another service (like oracles, rollups, or bridges)

• Earning double rewards from both

Why Do People Use Restaking?

• Higher rewards — Layer additional yield on top of staking

• No need to un-stake — With protocols like EigenLayer or EtherFi, you restake liquid tokens (like stETH or eETH)

• Support for new infrastructure — You’re helping decentralize the future of blockchain tech

What are the Risks?

Restaking is powerful, but it’s important to be mindful:

• Smart contract risk — You’re now trusting another layer of code

• Slashing risk — If the service you support fails or acts badly, you could lose part of your staked assets

• Protocol maturity — Many restaking systems are new and still evolving

• Depeg risk — If you’re using liquid staking tokens (like stETH, eETH), their value can fluctuate