Ethereum restaking means that Ethereum is being staked at the same time as we are restaking on another protocol, with the aim of increasing security and speeding up transaction validation and also reducing the risk of hacking attacks and failures in other protocols.
One of the Ethereum restaking platforms that is currently making waves in the crypto world is EigenLayer which is based in the United States and was launched in June 2023. Even though it doesn't have a native token yet, this platform supports liquid staking derivatives (LSD) tokens and to date has held the total value locked. (TVL) more than US$1.8 billion. How to restake Ethereum is also very easy, we only need to connect a supported wallet such as Coinbase wallet, Metamask, OKX wallet and WalletConnect.
Ethereum Restaking Risks
Even though the Ethereum restaking scheme will be beneficial for capital efficiency and increasing returns, behind this there is a lot of criticism or condemnation, many experts say that the way restaking works is similar to leveraged investment which is high risk, there are also smart contract risks contained in EigenLayer and other risks such as liquidity and centralization risks.
Restaking Ethereum will be high risk so it is not recommended for novice investors, especially if they do not have good skills and risk management.
One of the Ethereum restaking platforms that is currently making waves in the crypto world is EigenLayer which is based in the United States and was launched in June 2023. Even though it doesn't have a native token yet, this platform supports liquid staking derivatives (LSD) tokens and to date has held the total value locked. (TVL) more than US$1.8 billion. How to restake Ethereum is also very easy, we only need to connect a supported wallet such as Coinbase wallet, Metamask, OKX wallet and WalletConnect.
Ethereum Restaking Risks
Even though the Ethereum restaking scheme will be beneficial for capital efficiency and increasing returns, behind this there is a lot of criticism or condemnation, many experts say that the way restaking works is similar to leveraged investment which is high risk, there are also smart contract risks contained in EigenLayer and other risks such as liquidity and centralization risks.
Restaking Ethereum will be high risk so it is not recommended for novice investors, especially if they do not have good skills and risk management.
