A novel mechanism in blockchain networks, particularly on Ethereum, where staked Ether (ETH) is re-used to secure additional decentralized protocols and services beyond the primary blockchain.
Mechanism
Users delegate their staked ETH or liquid staking tokens to Actively Validated Services (AVSs) through protocols like EigenLayer. This commitment secures the AVSs, and in return, stakers earn additional rewards, subject to potential slashing penalties for misbehavior or failure to meet service agreements.
Methodology
Restaking creates a shared security layer, allowing new decentralized applications to bootstrap trust and security by leveraging Ethereum’s established economic security. This expands the utility of staked capital and fosters ecosystem growth by enabling modular security for various blockchain services.
This deployment establishes a robust framework for institutional capital to engage with Ethereum's Layer 2 ecosystem, optimizing yield and mitigating risk.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
