🔁 What Is the ETH Restaking Economy?
The ETH restaking economy is a new layer of value creation on Ethereum where staked ETH is reused to secure multiple protocols at the same time, instead of just Ethereum’s base layer.
Traditionally, staking ETH only helped secure Ethereum and earned staking rewards. Restaking changes this by allowing the same staked ETH to provide security to additional networks, services, and applications, creating extra yield opportunities — with added risk.
⚙️ How ETH Restaking Works
ETH is first staked to secure Ethereum
That staked ETH is then restaked to secure other protocols (AVSs – Actively Validated Services)
Validators earn additional rewards for taking on extra responsibilities
This creates a shared security model where new protocols can bootstrap trust without building their own validator sets.
🌐 Why the Restaking Economy Matters
Capital efficiency: One asset secures many systems
Faster ecosystem growth: New protocols inherit Ethereum-grade security
New yield layers: Validators and ETH holders unlock additional income streams
Composable security: Security becomes modular and reusable
⚠️ The Trade-Off
More yield comes with more risk.
Restaking introduces slashing risks, complexity, and tighter correlations across the ecosystem.
Higher returns ≠ risk-free.
🎯 In Summary
The ETH restaking economy turns ETH from a passive staking asset into a multi-purpose security layer for Web3.
Ethereum stays the base.
Restaking builds the economy on top.
