What is restaking? Using staked ETH to secure more than one network
By SendPay Business · · 2 min read
Restaking lets people who have staked ETH pledge that same stake again to help secure other services built on top of Ethereum. In return they can earn extra rewards, but they also agree to extra rules, and extra ways to lose some of their stake.
How it works
- You stake ETH, directly or through a liquid staking token.
- You opt in to a restaking protocol such as EigenLayer.
- Your stake is used to back other services, such as oracles or bridges.
- Those services pay rewards, and can cut your stake if the rules are broken.
Why it exists
Starting a new network usually means attracting a fresh pool of stakers. Restaking lets new services borrow security from Ethereum's existing stakers instead.
The risks
- More services means more rules, and more chances of being slashed.
- Extra smart contracts add extra places for bugs.
- If many people restake the same ETH, one failure could spread across several services.
Where SendPay fits
SendPay platforms let customers buy, sell and hold crypto, held with regulated partners, alongside GBP, EUR and USD accounts, powered by licensed partners. SendPay doesn't offer trading tools, DeFi or lending.
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Build my platform →Questions people ask
What could staking earn?
Work out staking rewards after commission.
Crypto staking rewards calculator →What is crypto staking?
Locking coins to help run a proof-of-stake network in return for rewards.
Crypto staking →What is a blockchain oracle?
A service that brings outside data onto a blockchain.
Blockchain oracles →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.