Restaking: An Introduction to Shared Security and Stacked Risks
Restaking allows already-staked assets to continue providing security for other services in exchange for additional rewards; however, it also compounds risks such as slashing, smart contract, liquidity, depegging, and liquidation risks.
The Basic Concept of Restaking
Restaking means using already-staked crypto assets again to secure other services or networks. A common asset is ETH. The same staked value can therefore support both the underlying network and additional systems simultaneously, potentially earning rewards beyond regular staking yields, while also taking on additional risks.
How It Works and Shared Security
Users or protocols deposit staked assets into restaking protocols such as EigenLayer and select one or more Actively Validated Services (AVS). Operators use these assets to run services and maintain security. New services borrow existing trust and economic security foundations rather than building protection from scratch; this model is also known as shared security.
Liquid Restaking Tokens
Users deposit ETH or liquid staking tokens, after which the protocol can restake them on their behalf and issue liquid restaking tokens (LRT), representing the right to claim the underlying position and rewards.LRT are generally transferable and can also be traded, lent, or used as collateral in DeFi applications, allowing the assets to retain a certain degree of liquidity.
Risks to Understand
Restaking compounds multiple layers of risk: improper conduct by operators or services may trigger slashing, while contract vulnerabilities may cause losses of funds;LRT may also face insufficient liquidity or depeg from the value of the underlying asset when markets come under pressure. If LRT is used as collateral, price volatility may also increase the risk of liquidation.
Original Tutorial
https://www.binance.com/zh-CN/academy/glossary/restaking
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