Restaking: What It Is and Why It Matters

When working with Restaking, the practice of redeploying earned staking rewards back into the same or a different proof‑of‑stake protocol to compound earnings. Also known as reward compounding, it lets validators boost yields without adding new capital.

Restaking encompasses liquid staking because many users first lock assets in a liquid‑staking wrapper, claim the receipt tokens, and then restake those tokens on another layer. This process Liquid Staking, provides liquidity while still earning consensus rewards and makes the restaking loop possible. At its core, restaking Staking, the act of locking crypto to support network security and earn rewards requires smart contracts that automatically move rewards, so DeFi, decentralized finance platforms that build on staking primitives often provide the tooling. In practice, a user might earn 5% on Ethereum, restake that 5% into a Layer‑2 protocol, and watch the combined yield grow.

Key Concepts in Restaking

Restaking requires smart contracts that can verify reward balances, trigger deposit actions, and handle slashing risks. Because Ethereum’s transition to proof‑of‑stake, the network now Ethereum, a leading PoS blockchain that supports staking and restaking mechanisms serves as the backbone for most restaking strategies. Meanwhile, DeFi platforms influence restaking by offering incentive programs, fee rebates, and governance rights tied to the compounded stake. This creates a feedback loop: higher restaked capital improves network security, which in turn boosts token value and attracts more stakers.

All these pieces—staking, liquid staking, DeFi tools, and the underlying blockchain—interact to shape the restaking landscape. Whether you’re a validator looking to maximize APR or a casual holder wanting passive growth, understanding how these entities connect helps you decide where to place your assets. Below you’ll find a curated list of posts that break down the mechanics, compare platforms, and showcase real‑world examples of restaking in action.