Restaking Explained: How It Boosts Crypto Rewards and Security
When you stake your crypto, you lock it up to help secure a blockchain like Ethereum—and get rewarded for it. But restaking, the practice of reusing already-staked assets to secure additional protocols. Also known as liquid restaking, it lets you earn extra rewards without locking up more coins. Think of it like renting out your car not just for rideshare, but also for delivery services, movie shoots, and road trips—all at the same time. You’re not adding more cars. You’re just using the same one smarter.
Restaking became a big deal after EigenLayer, a protocol that lets Ethereum stakers extend their security to other apps launched. Before EigenLayer, if you staked ETH, your stake only helped secure Ethereum’s main chain. Now, you can use that same stake to help secure things like decentralized oracles, bridges, and rollups—without giving up your original rewards. That’s where LST, or Liquid Staking Tokens like stETH or rETH come in. These tokens represent your staked ETH and can be moved around, traded, or used in DeFi. With restaking, those tokens become the fuel for new layers of security.
It sounds simple, but there’s a catch. When you restake, you’re tying your assets to more systems. If one of those new protocols gets hacked, your original staked ETH could be at risk. It’s not just about earning more—it’s about trusting more. That’s why restaking is mostly used by experienced users who understand the trade-off: higher rewards, but higher responsibility. Not every wallet supports it. Not every exchange lets you do it. And if you’re not careful, you could end up losing more than you gain.
The posts below cover real examples of how restaking works in practice—from the tools you need, to the platforms that make it possible, to the tokens that emerged from it. You’ll find guides on how to get started safely, reviews of restaking protocols, and breakdowns of why some restaking projects succeeded while others failed. No fluff. No hype. Just what you need to know before you lock your coins into another layer.
Restaking Use Cases and Applications in Blockchain
Restaking lets Ethereum stakers secure multiple blockchains at once for higher yields, but comes with added slashing risks. Learn how EigenLayer, Renzo, and liquid restaking are reshaping blockchain security and where it's being used today.
- December 26 2024
- Terri DeLange
- 18 Comments