What is restacking?
Restaking is the ability to reuse ETH on the Ethereum main network or in liquid staking pools as wrapped tokens on platforms that use the EigenLayer protocol. The coins received in return can be used to check the quality of protection of third-party networks outside the EVM.
Restaking: passive income through cryptocurrency
Restaking is a strategy that allows you to earn passive income by owning certain cryptocurrencies.
In simple words:
This is the process of participating in maintaining the blockchain and its security, for which you are rewarded in the form of additional coins.
How it works?
You keep your coins in your wallet, which is connected to the blockchain network. The more coins you hold, the more likely you are to be chosen to create a new block and receive a reward.
Why is restaking attractive?
No powerful equipment is required, as is the case with mining. A more affordable and environmentally friendly way to earn income. Allows you to diversify your portfolio and participate in project development
Restaking is useful for investors who want to diversify and increase their staking profits. It also helps investors gain access to new platforms and services.
The main platform and key element of the re-staking/restaking infrastructure is the Eigen Layer platform.
EigenLayer acts as a bridge, allowing you to restake already staked ETH on different protocols – AVS. You can stake ETH directly or use liquid staking tokens such as stETH, rETH or cbETH
In April 2023, Ethereum developers activated the Shapella update, which included several changes to the network consensus layer. The most important of them is the ability to withdraw locked coins from the Beacon Chain deposit contract. This update caused an influx of liquidity into the market. When the Proof-of-Stake algorithm was improved to an understandable and relatively secure model, staking provided passive income at the level of PoW mining. In addition, the Shapella hard fork, having removed a number of restrictions in the network architecture, formed the necessary basis for the development of new directions and their implementation. Restaking became one of these vectors.
Information Platforms:
https://www.publish0x.com
https://sl8.online
https://tangled.com
https://solcial.io
https://www.bulbapp.io
