Restaking

Definition ∞ Restaking is an innovative mechanism where staked assets, typically Ethereum’s ETH, are reused to secure additional protocols or decentralized applications beyond the primary blockchain. This allows stakers to earn extra rewards by providing security services to multiple networks simultaneously. It represents an economic layering strategy to enhance capital efficiency and security across various protocols.
Context ∞ Restaking is a rapidly evolving area in the decentralized finance landscape, frequently discussed in crypto news due to its potential for increased yields and its implications for network security. Debates often concern the added risks associated with securing multiple protocols with the same underlying capital, including potential for cascading penalties. A critical future development involves the maturation of risk assessment models and insurance mechanisms specifically tailored for restaking participants.