What Is Restaking?
Restaking allows users to take already-staked tokens (like ETH) and use them to secure additional networks or services — effectively earning extra rewards from the same capital.
Think of it like earning interest twice on the same deposit, but in a decentralized and secure way.
Who’s Leading the Trend?
- EigenLayer has pioneered Ethereum restaking, letting ETH stakers opt in to secure other protocols and earn extra rewards.
- Karak Network and Symbiotic are entering the space, offering multi-chain restaking for a variety of use cases.
- DeFi protocols are integrating restaking as a new yield layer, attracting both retail and institutional capital.
Source says: At its core, restaking works by extending the slashing conditions of the base layer (like Ethereum) to these additional services (AVSs). Slashing is the penalty validators face if they act maliciously or negligently—they lose a portion of their staked assets.
Why It’s a Big Deal
Enhanced capital efficiency: Users can generate more rewards without unstaking or moving funds.
Boosts network security: Emerging protocols can “borrow” Ethereum’s validator set for cheaper and faster decentralization.
New passive income model: Combined with liquid staking tokens (like stETH), restaking offers DeFi-native compounding yield.
What to Watch Out For
- Slashing risk: Restaking adds new layers of risk. If a network you help secure is attacked, your original stake may be penalized.
- Protocol complexity: Not all restaking platforms are equal — due diligence is critical.
- Smart contract risks: Like any DeFi innovation, code quality and audits matter.
The Bottom Line
Restaking is one of the most innovative developments in crypto yield generation. In 2025, it’s not just about staking anymore — it’s about how far your stake can go.
