From Nasdaq:

1. Ethereum’s security model is evolving with the rise of restaking outside the mainchain, providing security to other EVM chains and unlocking new financial opportunities in the ecosystem.

2. Ethereum transitioned to Proof of Stake in 2022, creating a liquid staking industry that allows participants to receive derivative tokens for staking their ETH, which can be used in DeFi protocols to generate more yield.

3. Liquid staking protocols like Lido and EigenLayer have made Ethereum staking more accessible by allowing users to participate without the 32 ETH minimum. This has given rise to restaking, where tokens can be used to secure other EVM networks and provide liquidity to DeFi projects.

4. Restaking in Ethereum offers users the ability to earn additional yield by locking their assets into staking contracts and using derivative tokens in other protocols, but this complex process also comes with added risks.

5. Despite the risks, the restaking industry has maintained strong security protocols with no major hacks reported so far. Developers see restaking as a way to innovate faster and build stronger ecosystems, despite the potential risks involved.

6. Restaking provides lower APRs compared to earlier DeFi yield farming days, but it still offers attractive returns for stakers looking to maximize their yield. While sustaining current yields remains uncertain, restaking is viewed as a lower-risk option to boost yield in a bullish crypto market.



Read more at Nasdaq: Restaking Reaches $12B as Rising Ethereum Sector Flourishes