Ethereum Users Discover New Way to Reuse Staked Crypto

Restaking is a process that allows users to reuse already-staked crypto, such as Ethereum (ETH), to provide economic security to additional networks and applications beyond the base blockchain.

Instead of staking once and earning one reward stream, restakers opt in to extra smart contracts that extend their staked capital's protective role to other services, called Actively Validated Services (AVS).

The EigenLayer protocol is a prominent example of restaking on Ethereum, allowing users to deposit ETH natively or supply a liquid staking token and earn additional rewards.

Restaking carries more risk than plain staking because the same capital backs multiple systems, each with its own slashing and smart contract risk.