Definition ∞ A restaking service allows staked assets to be reused across multiple protocols to secure additional decentralized applications. This innovation permits users who have already staked their Ether (ETH) or other proof-of-stake assets to “restake” them on other protocols or middleware, earning supplementary rewards. It effectively amplifies the capital efficiency of staked assets by extending their security guarantees to a wider range of services. The underlying principle involves creating a shared security layer that benefits various decentralized applications.
Context ∞ Restaking services represent a significant development in the liquid staking ecosystem, offering new avenues for yield generation and protocol security. Discussions often focus on the increased complexity and potential risks associated with cascading liquidations or protocol failures due to shared collateral. News reports on the growth of restaking platforms and their implications for the broader security model of decentralized finance.