Restaking Explained: Yield, Risk, and the New Trust Layer
Restaking lets ETH secure additional networks — expanding yield opportunities but also correlated risk. Here's the primer.
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Restaking Explained: Yield, Risk, and the New Trust Layer
The concept
Restaking allows validators to reuse their staked ETH as security for additional protocols — called Actively Validated Services (AVSs). In return, restakers earn additional yield on top of base staking rewards.
Where the yield comes from
AVSs pay for economic security. Data availability layers, oracles, and cross-chain bridges are the earliest customers. Their fees, paid in ETH or their native tokens, flow to restakers.
Realistic yield ranges
- Base ETH staking: 3–4%
- Restaking premium: 1–4% depending on AVSs selected
- LRT (liquid restaking token) strategies: variable, higher-risk
The correlated-risk problem
The same ETH now backs multiple protocols. If several AVSs slash simultaneously — due to a shared bug, oracle failure, or exploit — losses compound. This is the primary criticism of the model.
Risk mitigations
- Choose AVSs conservatively; don't opt into everything
- Diversify across restaking operators
- Watch operator concentration metrics
Bottom line
Restaking is a genuine innovation in cryptoeconomic security. It's also a new source of systemic risk. Understand what your ETH is actually securing before chasing headline APRs.