Instead of forcing new projects to bootstrap their own validator networks (which requires attracting capital and proving long-term sustainability), restaking allows them to tap into Ethereum’s existing stakers. In return, validators who opt into restaking earn an additional yield on top of their standard Ethereum staking rewards.

This creates a win-win scenario:

• For validators: They can earn more yield by securing multiple protocols while still maintaining their role as Ethereum validators.
• For new projects (AVSs): They gain access to Ethereum-grade security without having to create an entirely new staking infrastructure.

That being said, it is overly complex for an average DeFi user to engage in restaking, which is why Liquid Restaking protocols were introduced.

We’ll cover that in the next section, How Liquid Restaking Tokens (LRTs) Work.

To learn more about restaking and liquid restaking, also visit:

• Restaking & Liquid Restaking Overview
• What is Restaking?
• How Liquid Restaking Tokens (LRTs) Work
• Restaking & Liquid Restaking Key Considerations
• Restaking & Liquid Restaking Key Terms
• Restaking Projects