Restaking
Using already-staked assets to simultaneously secure additional protocols or services, earning multiple yield streams.
In-Depth Explanation
Restaking (pioneered by EigenLayer) lets staked ETH secure other networks and services beyond Ethereum consensus. Restakers earn additional yield but take on additional slashing risk. The model extends cryptoeconomic security to new applications without requiring them to bootstrap their own validator sets. Critics worry about systemic leverage and correlated slashing risk.
Related Terms
Staking
Locking tokens in a protocol to earn rewards, secure a network, or gain governance rights.
Liquid Staking Token
LSTA token representing staked assets that remains liquid and usable in DeFi while the underlying earns staking rewards.
Slashing
A penalty mechanism that destroys a portion of a validator's staked tokens for malicious or negligent behavior.
More in DeFi Primitives
View all →Automated Market Maker
AMMA smart contract that provides liquidity and enables trading using a mathematical formula instead of an order book.
Liquidity Pool
LPA smart contract holding paired assets that enables trading, lending, or other DeFi activities.
Collateralized Debt Position
CDPA loan where users deposit collateral to mint or borrow assets, with liquidation risk if collateral value falls.
Lending Protocol
A DeFi application that matches lenders with borrowers through smart contracts, enabling permissionless borrowing and lending.