Skating & Restaking narrative
What Is Staking
Staking means locking up your crypto to help secure a blockchain and earn rewards.
When you stake your tokens, you are helping run the network (especially in proof-of-stake systems like Ethereum, Solana, etc.).
Here’s how it works:
- You lock your tokens in the network
- In return, the network rewards you with more of those tokens over time
- You then withdraw your tokens after a certain period
It’s like putting money in a savings account and earning interest, except here, you’re helping power the blockchain.
What Is Restaking
Restaking takes the idea of staking a step further.
You’re already staking your tokens to help secure one blockchain.
Restaking lets you use those same staked tokens to secure more networks or services at the same time.
You're earning rewards from multiple sources by securing multiple layers.
Think of it like this:
- You stake ETH to help secure Ethereum
- Then, you restake that ETH to help secure other protocols built on top of Ethereum
- You then earn extra rewards from those new protocols while still supporting Ethereum
Why Is Restaking a Big Deal
The restaking narrative became popular with protocols like EigenLayer. They allow you to “reuse” your staked ETH to secure new apps and services, like new blockchains, oracles and data availability layers
This unlocks extra yield on your staked assets. Instead of your ETH sitting idle in one place, it now works in multiple places.
It's like:
Renting out your house (staking)
Then using it as an event venue too (restaking)
You now earn from both rent and events
Why People Are Excited About Restaking
More Yield: Get more out of the same staked tokens
Security for New Projects: New protocols don’t need to build their own validator networks they can borrow security from Ethereum
Capital Efficiency: One asset, many jobs. That’s attractive in DeFi.
Risks to Know
Smart contract risk: More layers mean more things can go wrong
Slashing: If a restaked validator misbehaves, you could lose part of your stake
Complexity: More moving parts can mean more risk if you don’t fully understand where your assets are going
Conclusion
Staking secures one chain. Restaking uses that same stake to secure many others.
It’s a powerful idea that makes blockchains more connected and capital more efficient. But like all innovations in crypto, it’s still new and carries risks. Always understand what you’re restaking into.
Quick Overview: Staking & Restaking
Staking is when you lock up your crypto (like ETH) to help secure a blockchain and earn rewards.
Restaking takes it further, it lets you use your already staked tokens to secure other protocols or services at the same time, earning extra rewards.
This makes your capital more efficient -one token, multiple jobs.
Restaking became popular with platforms like EigenLayer, which let you restake staked ETH to support new networks without needing to unstake it from Ethereum.
It’s higher yield but comes with added risks like smart contract failures and slashing penalties.
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