Restaking, a method in decentralized finance (DeFi) that reuses staked assets to secure additional networks, is under scrutiny for its risk-reward balance. While it promises higher yields, it also introduces significant risks by layering security across multiple protocols using the same collateral. This approach can lead to centralization, as only large operators can manage the complexities of multi-network positions effectively.
The yields from restaking are often synthetic, derived from token emissions and speculative fees rather than genuine network activity. This raises concerns about the long-term sustainability of restaking, as the model relies on recycled incentives rather than verifiable on-chain utility. As DeFi evolves, there is a growing need for yield systems that prioritize transparency and real economic activity over complex risk abstractions.
Restaking in DeFi: High Yields, Higher Risks
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