Restaking Integration

Definition ∞ Restaking integration involves combining existing staked assets from one protocol to secure and validate another protocol or decentralized application. This mechanism allows stakers to use their already staked capital on a primary blockchain, such as Ethereum, to simultaneously secure secondary protocols. By reusing staked assets, participants can potentially earn additional rewards, while the integrated protocols benefit from enhanced security and economic alignment. Restaking represents an innovative approach to capital efficiency and shared security within the decentralized ecosystem.
Context ∞ Restaking integration is a rapidly evolving concept in decentralized finance, particularly with the growth of liquid staking derivatives and the pursuit of shared security models. A key discussion involves the potential for increased systemic risk if a single staked asset secures multiple protocols, creating cascading failure points. Future developments are expected to focus on robust risk management frameworks and diversification strategies for restaked assets to mitigate these concerns.