What is Restaking

Restaking is a derivative activity of liquid staking, which can be understood as a secondary staking based on liquid staking. It refers to re-staking tokens (liquid staking derivatives LSD) to earn secondary yields.

Restaking is usually divided into two scenarios: re-staking on the same protocol or re-staking on a different protocol.

Re-staking on the same protocol means continuing to stake tokens and staking rewards within the original protocol to increase future staking income.

Re-staking on a different protocol means re-staking tokens into another protocol to earn rewards from that protocol and release liquidity externally.

In the second case, Restaking can earn two separate rewards. One from the original protocol; the other from the newly staked protocol. Besides releasing liquidity, Restaking can also increase the network’s value, thereby enhancing the network’s decentralization and security.

Overall, Restaking based on liquid staking achieves:

Liquidity release: Staking assets like LSD into other protocols can release the assets’ liquidity.

Reward enhancement: Through Restaking, stakers can obtain compound returns.

Network security improvement: As assets are re-staked, the network’s value increases, thereby improving the network’s security and decentralization.

**$REZ **$RESOLV **$RED **