What Is Restaking and How Is It Changing DeFi?

DeFi is evolving faster than any other area of crypto. Just yesterday, investors were getting the hang of farming and lending — and today, everyone’s talking about restaking: one of the key trends of recent years, promising to make staking more efficient, flexible, and rewarding

In this article, we’ll explain what restaking is, why it matters, and how it’s impacting the DeFi ecosystem.

What Is Staking?

To understand restaking, let’s quickly recap what staking means.

Staking is the process of locking cryptocurrency in a Proof-of-Stake (PoS) network to validate transactions and secure the network. In return, validators and users earn rewards.

Example: you stake 10 ETH on Ethereum and earn rewards in new tokens. Simple. But there’s one limitation: while your funds are staked, you can’t use them in other protocols.

What Is Restaking?

Restaking is a mechanism that allows you to reuse already staked assets — to participate in other networks, protocols, or services — while keeping your original staking rewards.

In simple terms:

you stake ETH → receive a derivative token (like stETH or rsETH) → reuse it — for example, for yield farming in Protocol A or as collateral in Protocol B.

This way, you earn extra income without needing to unstake your original funds.

Who Introduced Restaking?

The concept was popularized by EigenLayer, one of the most talked-about startups in the Ethereum ecosystem. It allows users to restake their ETH to secure other protocols and applications.

EigenLayer pioneered the idea of Restaking-as-a-Service — infrastructure where participants earn rewards by putting their staked assets to additional use.

Benefits of Restaking

Higher Yield Potential

You earn not only from the basic staking rewards but also from extra activities, making your capital more productive.

Ecosystem Growth Participation

Restaking helps launch new apps and protocols without building a separate validator network.

More Flexibility

You can easily move derivative tokens between platforms, increasing liquidity and flexibility.

What Are the Risks?

Increased Complexity

Restaking adds extra layers of interaction between protocols, increasing the chance of bugs or smart contract errors.

Higher Liquidation Risks

When using derivative tokens as collateral, price drops can quickly lead to liquidations.

Potential Centralization

Some projects may give excessive control to large validators, undermining decentralization. As of 2025, around 35–40% of restaking activity is concentrated among just 3 to 5 major players — raising regulatory concerns and fueling debates about centralization.

How Restaking Is Changing DeFi

Boosting Overall Yield

Investors are looking for the highest capital efficiency. Restaking creates new opportunities to earn more from the same assets.

Increasing Protocol Interdependence

DeFi apps are becoming more interconnected, creating new opportunities but also new systemic risks.

Driving New Token Types

Derivative assets like stETH, rsETH, LsETH, and others are becoming essential building blocks for DeFi — used as collateral, for settlements, and liquidity.

Where Is Restaking Already Used?

• EigenLayer — the leader in restaking, enabling reuse of ETH, stETH, cbETH, and more
• Ether.fi — rewards users for supporting decentralized infrastructure via restaking
• Kelp DAO — offers a user-friendly interface to manage restaking strategies and choose validators
• Renzo Protocol — automates participation in restaking platforms, reducing complexity

How to Use Restaking Safely

Not all projects are equally secure. If you’re new to restaking, it’s crucial to use trusted wallets and platforms.

EMCD Wallet — a convenient, non-custodial wallet that lets you:

• store and manage derivative tokens
• connect to DeFi protocols without KYC
• manage multiple assets
• earn passive income via EMCD

If you want flexible crypto management with modern strategies, EMCD Wallet provides secure and user-friendly infrastructure.

Who Benefits from Restaking?

• Investors — earn more from the same capital
• Protocols — launch faster without building their own validator networks
• Platforms — expand product offerings and integrations
• The Ecosystem — gains flexibility, scalability, and capital for growth

Conclusion

Restaking is a step forward for DeFi. It allows assets to work more efficiently, opens up new income streams, and makes the ecosystem more dynamic.

However, more opportunities come with more risks. It’s crucial to understand how restaking works, choose reliable protocols, and store derivative tokens safely.

If you’re ready to explore new strategies — start with solid infrastructure. Try EMCD Wallet and manage your assets wisely.