Liquid Restaking

Definition ∞ Liquid restaking is an advanced decentralized finance mechanism enabling users to stake already staked assets on additional protocols while retaining access to their capital. Participants receive a liquid restaking token, which can then be utilized across other DeFi applications. This process seeks to enhance capital efficiency and generate supplementary yield from staked positions.
Context ∞ Liquid restaking represents a rapidly expanding segment within the Ethereum ecosystem, attracting substantial investment and innovation. News frequently covers the introduction of new liquid restaking protocols, the accumulation of significant total value locked, and ongoing discussions regarding the associated risks, such as increased protocol interdependence and potential systemic concentration.