Home Glossary Restaking

Restaking

Restaking is a decentralized finance mechanism that allows investors to use their already-staked cryptocurrency assets to secure additional protocols or networks simultaneously. Traditionally, staked assets are locked in a single smart contract to validate transactions on a specific blockchain ecosystem, such as Ethereum. With restaking, users leverage specialized platforms to extend that cryptoeconomic security to external decentralized applications, oracle networks, or sidechains without needing to un-stake their original tokens. In exchange for providing this shared security, participants earn supplementary yield on top of their base staking rewards.

However, this practice also exposes users to compounded slashing risks, as malicious behavior or node failure on any secured network can result in a loss of funds.