🧩 Strategies

Restaking

Using already-staked assets to secure additional protocols for extra yield

Definition

Restaking is the practice of using already-staked assets (like stETH) to provide security to additional protocols or services. Pioneered by EigenLayer, restaking allows Ethereum validators to opt-in to secure other networks or services, earning additional rewards on top of base staking yields. This creates a shared security model but introduces additional slashing risks.

Restaking is a strategy term used to understand Using already-staked assets to secure additional protocols for extra yield. In practice, it matters because it affects how users evaluate protocols, compare opportunities, and avoid hidden assumptions.

Example

An ETH staker deposits stETH into EigenLayer to restake, earning base ETH staking rewards plus additional rewards from securing oracle networks and bridges.

1

How it works

In practice, the concept shows up like this: An ETH staker deposits stETH into EigenLayer to restake, earning base ETH staking rewards plus additional rewards from securing oracle networks and bridges.

2

Why it matters

Restaking matters because small misunderstandings in DeFi can turn into bad pricing, liquidation, governance, custody, or smart-contract risk. A good mental model helps you compare protocols without relying on marketing language.

3

What to check

Treat it as a strategy: map each step, each contract dependency, each exit condition, and the downside before committing capital. The main checks are: Additional slashing conditions; Smart contract risk stacking; Systemic risk from shared security.

Risks to Consider

  • Additional slashing conditions
  • Smart contract risk stacking
  • Systemic risk from shared security

Common Questions

What are the risks of restaking?

Restaking stacks risks: you face base staking risks plus additional slashing conditions from each service you secure. If a secured service has a bug or is attacked, your restaked assets could be slashed.

What does Restaking mean in DeFi?

Restaking means Using already-staked assets to secure additional protocols for extra yield. The useful question is not only the definition, but how the mechanism changes risk, return, liquidity, or governance for the user.

How is Restaking used in practice?

A practical example: An ETH staker deposits stETH into EigenLayer to restake, earning base ETH staking rewards plus additional rewards from securing oracle networks and bridges.

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