What Is Restaking?
Restaking is a mechanism that allows staked assets (like staked ETH) to simultaneously provide security for additional protocols beyond the base layer. Pioneered by EigenLayer on Ethereum, restaking lets validators "re-pledge" their staked ETH to secure other services (bridges, oracles, data availability layers) and earn additional rewards for the added risk.
How Restaking Works
The process works through delegation: validators opt in to additional security responsibilities, and their staked ETH serves as collateral for multiple services. If a validator misbehaves on any of the additional services, their staked ETH can be slashed. In return for taking on this extra slashing risk, validators earn rewards from each additional service they secure.
Why It Matters for Traders
Restaking represents a paradigm shift in DeFi capital efficiency — the same capital that secures Ethereum can simultaneously secure dozens of other services, stacking yields. For investors, restaking offers higher returns on staked ETH (potentially 2-5x standard staking yield). The risk is compounded slashing exposure: a bug or attack on any secured service could trigger slashing of your restaked ETH across multiple layers simultaneously.
