Restaking is reshaping the future of the decentralized finance (DeFi) space. In doing so, it allows users more freedom to maximize the utility of their staked assets across various networks and services. This new approach rewards users with even more rewards, all without needing to unstake from their original positions. The DeFi sector is maturing quickly. Restaking is a novel opportunity empowering users to optimize their yields and expand the use cases of their favorite digital assets.
As more protocols take advantage of restaking mechanisms, we can expect explosive growth in the DeFi sector. According to these same projections, the TVL in DeFi will hit $200 billion by the end of 2025. Restaking will be central to attracting institutional and retail investors alike. User-friendly platforms and improved security protocols are playing a crucial role in accelerating the global adoption of restaking strategies.
Understanding Restaking
Restaking is the practice of using assets that are already staked to help secure other networks or services, creating new opportunities to earn rewards. Platforms such as Lido and Rocket Pool have transformed the staking landscape by allowing users to stake Ethereum (ETH). Beyond that, they offer liquidity through their liquid staking tokens, like stETH and rETH. This creates a frictionless experience for users by allowing them to maintain access to their staked assets when they need them without losing their staking rewards.
Restaking makes dfdvSOL more useful than ever by unlocking innovative new ways to use staked assets. This allows users to passively earn rewards as they have their position staked in Solana (SOL). This dual-reward system helps to encourage participation and adds to the overall security and stability of the network.
Key Platforms and APYs
Several major platforms stand out for their strong security measures, customizable features, and high annual percentage yields (APYs). Among these, Lido and Rocket Pool are the most notable projects to emerge and dominate the Ethereum staking ecosystem. Aave gives users other lending and borrowing choices. Users can compare APYs across these platforms to find the most profitable restaking opportunities.
For example, if we take out 5 ETH and stake it with a 5% APY — a common staking return right now — you’re getting 0.25 ETH back per year. Additionally, staking 50 ETH at the same APY for 24 months would earn you ~3 ETH in rewards. These real-world use cases further highlight the possibility for tremendous earning potential with smart, strategic restaking. The most obvious choices for restaking fall under high-APY platforms, as these typically hold the highest promise for maximizing rewards on staked assets.
Maximizing Returns with Liquid Staking
Liquid staking tokens like stETH or rETH give users access to liquidity while they stake their assets. This leading institutional approach opens the door for a variety of DeFi activities. This allows them to lend and borrow other assets without having to unstake their native holdings.
Restaking offers a new and powerful opportunity for users to compound their returns on staked assets. Users have the flexibility to more strategically stake their assets across networks and services. Such an approach empowers them to tap into previously inaccessible revenue streams and increase the bottom line profitability of their DeFi investments.
