Restaking Crypto: How It Works and Why It's Changing DeFi

When you stake crypto, you lock up your coins to help secure a blockchain and earn rewards. But restaking crypto, the practice of reusing already-staked assets to secure additional protocols takes that a step further. Instead of letting your staked ETH or SOL sit idle, you use them again—this time to back up other networks, like Ethereum-based services or decentralized oracle systems. It’s like renting out your car not just for rides, but also for delivery services, towing, and even advertising. The result? Higher yields, but also more risk.

Restaking became a big deal after EigenLayer, a protocol that lets Ethereum stakers redelegate their security to other apps launched. Suddenly, people weren’t just earning staking rewards—they were earning extra rewards for helping secure things like bridge protocols, data feeds, and even new blockchains. This turned liquid staking, a system where staked assets are represented by tradable tokens like stETH or rETH into a leveraged tool. But here’s the catch: if one of those new protocols gets hacked, your original staked assets could be slashed. It’s not just about compounding rewards anymore—it’s about trusting multiple layers of code you didn’t build.

Most of the posts in this collection don’t talk about restaking directly, but they all connect to the same ecosystem. You’ll find deep dives into DeFi tokens that rely on staking mechanics, exchanges that support liquid staking derivatives, and security risks that come with layered protocols. There’s also real-world examples of how users are trying to maximize returns without getting wiped out. Whether you’re curious about how EigenLayer works, whether restaking is worth the risk, or how it compares to traditional staking, what follows isn’t just a list of articles—it’s a practical guide to navigating the next evolution of DeFi.