What Is Restaking? The Complete 2025 Guide

What Is Restaking?

Restaking is a decentralized finance (DeFi) sub-sector which allows users to maximize the utility of their idle or already staked digital assets. By repurposing staked assets, such as staked ETH on Lido (stETH), users can provide validation and security capabilities to additional protocols or networks without compromising their original staked position. This process, known as "re-staking," enables users to earn rewards from multiple services simultaneously, creating a more efficient and productive use of their crypto holdings.

Restaking is particularly relevant in the context of Liquid Staking Tokens (LSTs), which represent staked assets in a liquid form. These tokens can be further utilized in restaking to unlock additional value, making restaking a powerful tool for yield generation and capital efficiency in the DeFi space.

Restaking TVL Growth since 2024 (Source)

How Does Restaking Work?

Restaking allows users to lock their assets—such as Liquid Staking Tokens (LSTs), stablecoins, altcoins, or other supported asset types—into protocols. These locked assets are then made available to services, which are networks or applications in need of security to support their operations. By contributing their assets, restakers help these services achieve the necessary security infrastructure to function effectively.

In return for providing this security, restakers earn rewards, often in the form of additional tokens or fees. For example, a user who has staked ETH to secure the Ethereum network can restake their stETH (Lidos Liquid Staking Token representing staked ETH) to support new services. This enables the user to earn rewards from both the original staking process and the restaking process simultaneously, maximizing the utility of their assets.

By creating such a shared security model, restaking allows multiple services to leverage any pool of restaked assets to bootstrap their security needs. This eliminates the need for each protocol to build its own security infrastructure from scratch, fostering a more efficient DeFi landscape where restakers play a vital role in supporting emerging services.

How Does Restaking Differ From Traditional Staking?

Traditional staking involves locking up a native cryptocurrency, such as ETH on Ethereum or SOL on Solana, to secure a proof-of-stake (PoS) blockchain networks. In return, stakers earn rewards for participating in the network's consensus mechanism.

Restaking, on the other hand, expands this concept by allowing a broader range of assets—including LSTs, stablecoins, and altcoins—to be used for validation and security purposes across multiple networks or platforms. This means that restaking enables users to leverage their staked assets beyond a single network, unlocking additional earning opportunities while contributing to the security of emerging protocols.

In essence, restaking introduces a more flexible and capital-efficient approach to staking, enabling users to maximize their returns without requiring additional capital.

The Benefits and Risks of Restaking

Benefits:

1. Increased Yield: Restaking allows users to earn rewards from multiple services using the same assets, significantly boosting their overall yield.
2. Capital Efficiency: By repurposing idle or already staked assets, restaking maximizes the utility of users' holdings without requiring additional investments.
3. Enhanced Blockchain Security: Restaking contributes to the security of emerging protocols by creating a shared security model, reducing the need for independent infrastructure development.

Risks:

1. Smart Contract Risks: Restaking protocols rely on smart contracts, which may contain vulnerabilities that could lead to asset loss.
2. Liquidity Risks: Depending on the protocol, restaked assets may not be easily withdrawable, potentially locking up funds for extended periods.
3. Risk Amplification: Restaking across multiple services can expose users to compounded risks if one service fails or experiences issues.

How Restaking Helps Blockchain Security

Restaking introduces the concept of Security as a Service (SaaS), creating a marketplace where users can delegate their assets to support emerging validation services. Instead of new protocols building their security infrastructure from scratch, they can leverage restaked assets to bootstrap their security needs.

This approach not only reduces the cost and complexity of launching new protocols but also strengthens the overall blockchain ecosystem by creating a decentralized and shared security model. By pooling resources, restaking ensures that even smaller protocols can achieve robust security without relying on unsustainable incentives or weak infrastructure.

Types of Restaking

• Native Restaking: Involves using assets native to a specific network, such as ETH on Ethereum, to provide security to validatoins services.
• Isolated Restaking: Allows users to restake assets in dedicated pools with isolated risk profiles, minimizing exposure to external risks.
• Basket-Based Restaking: Pools diverse restaked asset types together for convenience, though this may increase risk exposure due to the varied nature of the assets.

Restaking Protocols

Several protocols have emerged as pioneers in the restaking space:

• EigenLayer: A leading Ethereum-based restaking protocol that laid the foundation for the ecosystem by enabling users to restake their ETH and LSTs.
• Symbiotic: Builds on EigenLayer’s model, offering a modular ecosystem for users and services seeking increased flexibility.
• Babylon: Enables restaking of BTC derivatives to secure Ethereum Virtual Machine (EVM)-compatible networks, expanding the scope of restaking beyond Ethereum.

The following graph represents the current marketshare of restaking protocols in 2025:

Restaking Protocols Marketshare in 2025 (Source)

The Restaking Process Step by Step

• Restakers: Users who lock their assets to earn rewards from validation services.
• Validation Services: Entities that require additional security for their infrastructure and pay restakers for their contributions.
• Curators: Experts who connect restakers with suitable validation services through specific node operators, ensuring optimal matches based on risk and reward profiles.
• Node Operators: Infrastructure providers responsible for maintaining smooth operations and ensuring the integrity of the restaking process.

How Are Staking Derivatives Related to Restaking?

Restaking originated with the use of Liquid Staking Tokens (LSTs), such as stETH, which represent staked positions in a liquid form. These tokens can be restaked to unlock additional benefits, creating a layered approach to yield generation.

Over time, the scope of restaking has expanded to include a wide range of assets, including native cryptocurrencies, stablecoins, altcoins, and even BTC derivatives. This evolution has made restaking a versatile tool for maximizing returns across the DeFi ecosystem.

LRT Protocols and Liquid Restaking Tokens (LRTs)

What are Liquid Restaking Tokens (LRTs)?

Liquid Restaking Tokens (LRTs) are tools that represent a user’s restaked position in a liquid form. When users restake their assets—such as LSTs, stablecoins, or altcoins—they receive LRTs in return. These tokens act as proof of their restaked assets and can be freely traded or utilized across various DeFi applications.

The primary advantage of LRTs is their ability to maintain liquidity while earning restaking rewards. Unlike traditional staking, where assets are locked and illiquid, LRTs allow users to participate in restaking without sacrificing access to their funds. This opens up a world of opportunities, as LRTs can be used in yield farming, lending, borrowing, or other DeFi strategies, enabling users to maximize their returns. Additionally, LRTs contribute to the overall efficiency of the DeFi ecosystem by creating a seamless flow of capital across protocols.

What are LRT Protocols?

LRT Protocols are specialized platforms that facilitate the issuance and management of Liquid Restaking Tokens (LRTs). These protocols act as intermediaries, allowing users to restake their assets while maintaining liquidity through LRTs. By issuing LRTs, these protocols bridge the gap between restaking and DeFi composability, enabling users to further unlock the full potential of their assets.

One of the key features of LRT Protocols is their ability to aggregate restaked assets from multiple users and allocate them to Validation Services in need of security. This creates a scalable and efficient system where both restakers and protocols benefit. For restakers, LRT Protocols provide a user-friendly interface to participate in restaking, track rewards, and manage their LRTs. By fostering a symbiotic relationship between restakers andrestaking infrastructure, LRT Protocols play a crucial role in the growth and sustainability of the restaking ecosystem.

Restaking Use Case

Yield Farming with Restaked Assets

Restaking enables users to maximize their returns through yield farming with Liquid Restaking Tokens (LRTs). By restaking assets like stETH or stablecoins, users receive LRTs, which represent their restaked positions in a liquid form. These LRTs can then be deployed in yield farming strategies on decentralized exchanges (DEXs) or other DeFi platforms, earning additional rewards such as trading fees or farming incentives. This dual-layered approach—combining restaking rewards with yield farming—creates a highly efficient way to generate returns while maintaining liquidity.

How to Build Your Restaking Strategy

Understand Your Risk Profile: Evaluate how much risk you're comfortable with before diving into restaking.

• Select Asset Types: Choose assets that align with your strategy, such as stablecoins for lower risk or altcoins for higher returns.
• Pick Networks and Protocols: Select the ecosystems and restaking platforms you trust.
• Diversify: Spread your risk across multiple restaking services and pools to minimize exposure to any single point of failure.

Why InceptionLRT Should Be Your Go-To Liquid Restaking Platform

Comprehensive Restaking Options

InceptionLRT supports a variety of restaking strategies to suit different user preferences:

• Native Restaking: Use assets native to specific networks, such as ETH on Ethereum.
• Isolated Restaking: Lock assets in dedicated pools with isolated risk profiles.
• Meta Restaking: Allows for users to get exposure to multiple strategies and ecosystems under one multi-curated solution.

InceptionLRTs dApp UI (Source)

Liquid Restaking Tokens (LRTs)

• 19+ LRTs: InceptionLRT currently has over 19 staking solutions across protocols such as Symbiotic and EigenLayer.
• DeFi Integration: These LRTs can be used across 58+ DeFi protocols for activities like yield farming, lending, or looping.

Cross-Chain Accessibility

• 10+ Layer 2 Networks: InceptionLRT is integrated across multiple Layer 2 solutions, ensuring seamless access and connectivity.
• Internal Bridge: Users can leverage InceptionLRTs internal bridge for seamless asset transfers between networks.

User-Friendly Experience

• Simplified Interface: Designed for both beginners and experienced users, making restaking accessible to all.
• Advanced Features: Tools and analytics for users to optimize their restaking strategies and track performance.

By offering flexible restaking options, extensive DeFi integrations, and cross-chain accessibility, InceptionLRT provides a reliable and efficient platform for users to maximize the potential of their assets in the restaking ecosystem.

How to Restake Your LRT Using InceptionLRT

1. Choose Your Assets: Identify which LRTs you want to restake.
2. Select a Strategy: Opt for native, isolated, or basket-based restaking based on your risk tolerance and goals.
3. Lock Your Assets: Use the InceptionLRT platform to securely restake your assets.
4. Monitor and Adjust: Track your rewards and adjust your strategy as needed to optimize returns.

Embracing the Future of DeFi with Restaking

Restaking is reshaping the decentralized finance (DeFi) landscape by unlocking new ways to maximize the utility of digital assets. By allowing users to repurpose their holdings—such as Liquid Staking Tokens (LSTs), stablecoins, or altcoins—restaking enables participation in multiple protocols simultaneously. This not only boosts yield potential but also strengthens the security of emerging networks through a shared security model. For users, this means greater capital efficiency and the ability to earn rewards across a variety of services without needing additional investments.

Platforms like InceptionLRT are at the forefront of this evolution, offering flexible restaking options, seamless cross-chain accessibility, and tools to simplify the process for both beginners and advanced users. With support for 19+ LRTs and integrations across 58+ DeFi protocols, InceptionLRT empowers users to explore diverse strategies, from yield farming to lending and liquidity provision. Its presence on 10+ Layer 2 networks ensures that restaking is accessible and efficient, no matter which ecosystem you prefer.

As restaking continues to grow, it represents more than just a financial opportunity—it’s a way to actively contribute to the security and scalability of the blockchain ecosystem. By participating in restaking, you’re not only optimizing your assets but also playing a key role in supporting the decentralized infrastructure that drives innovation in DeFi. The future of restaking is bright, and now is the time to dive in, explore its potential, and be part of this transformative movement.

Take your DeFi strategy to the next level with InceptionLRT restaking platform.