Restaking and Liquid Restaking Overview
To understand restaking and liquid restaking, it’s important to grasp the concepts of staking and liquid staking (covered in our Staking & Liquid Staking section) first.
In that section, we covered a few concepts, including:
- Staking: Involves locking up ETH to help secure the Ethereum network and earn rewards. Stakers validate transactions and maintain network integrity in exchange for yield. However, a key limitation is that staked ETH is locked and cannot be used elsewhere in DeFi.
- Liquid Staking: Solves this by issuing Liquid Staking Tokens (LSTs), such as stETH (Lido) or rETH (Rocket Pool). These tokens act as receipts for staked ETH, allowing users to retain liquidity while still earning staking rewards. LSTs can be traded, used as collateral, or deployed in DeFi strategies.
The concept of restaking was introduced by EigenLayer, and it expands the concept of staking by allowing staked ETH to be reused to secure additional protocols. This enables other projects to leverage Ethereum’s security, as they can tap into Ethereum’s validators instead of needing to bootstrap their own network of stakers.
To learn more about restaking and liquid restaking, visit:
- What is Restaking?
- Why Restake?
- How Liquid Restaking Tokens (LRTs) Work
- Restaking & Liquid Restaking Key Risks
- Restaking & Liquid Restaking Key Considerations
- Restaking Projects
