What it is
Restaking is a crypto primitive that enables staked Ether (ETH) to be used simultaneously to secure the Ethereum blockchain and other decentralized protocols. Validators who have already staked their ETH on Ethereum can "restake" it with a restaking protocol. This mechanism allows the security and economic trust of Ethereum's validator set to extend to other applications, creating a shared security model. Participants typically lock their staked ETH or liquid staking tokens into smart contracts.
Restaking has emerged as a significant development within the DeFi ecosystem, offering new yield opportunities for retail investors and institutions. It creates a secondary market for staked ETH, influencing the demand for staking services and potentially affecting ETH's total supply locked in staking. The growth of restaking platforms and their associated tokens is a regular news topic, as it can introduce new risks related to smart contract vulnerabilities or slashing conditions beyond Ethereum's mainnet.
Why it matters
Restaking offers additional yield on staked ETH but introduces new risks. Understanding it helps evaluate potential returns and risks in DeFi.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice