Restaking is a strategy that can be used, often on proof-of-stake (PoS) blockchains, to reuse staked tokens to provide security to actively validated services (AVSs). Available to validators in PoS-based blockchains, as well as liquid staking token (LST) holders, restaking provides economic security to additional networks, protocols, or services.
The process of restaking involves native staking, such as staking ETH, or LSTs issued as representations of the underlying asset. For instance, a user restaking on the Ethereum network can restake LSTs and, in doing so, contribute to increasing the security of networks, bridges, or other AVSs. The incentive for providing security is additional rewards for validators and the participants involved.
While restaking is a strategy that can benefit the security of multiple AVSs, it is not without risks. Minimizing them means recognizing the potential penalties, such as increased slashing, where validators may be penalized if assets are used to secure more than one protocol or service, which invariably involves the introduction of additional rules that could trigger penalties.
