Restaking is an innovation in Proof of Stake systems that allows already-staked tokens to be reused as security collateral for additional protocols and services. Rather than staked assets only securing one network, restaking extends that economic security to multiple systems simultaneously.
The concept was popularized by EigenLayer on Ethereum. EigenLayer allows ETH stakers and liquid staking token holders to opt in to securing additional services — called Actively Validated Services (AVSs) — such as oracles, bridges, data availability layers, and sidechains. In return, restakers earn additional rewards on top of their base staking yield.
Restaking works because these additional protocols need economic security to function but may not have enough native token value to bootstrap it on their own. By tapping into Ethereum's massive staking pool, they can achieve strong security guarantees from day one.
Key benefits of restaking include:
- Capital efficiency — staked assets generate multiple layers of yield.
- Shared security — new protocols benefit from the security of established networks.
- Lower barriers — projects no longer need to build their own validator sets from scratch.
However, restaking also introduces additional risk. If a restaker misbehaves or the AVS has a bug, their staked ETH can be slashed. Multiple slashing conditions from different protocols compound the risk profile.
Restaking is closely related to the broader evolution of the consensus mechanism landscape, enabling a modular approach to blockchain security that could reshape how new networks launch and operate.