The Risk To Reward Tradeoff of Restaking

Gm Rollers:

Eigenlayer has $2 billion in TVL

Coming in at #11 in TVL across the entire DeFi ecosystem, and they haven’t even launched yet. The sheer size of Eigenlayer, while still in its infancy, demonstrates the tremendous anticipation around restaking. Well, I was skeptical. Restaking is the practice of using stake to secure multiple networks. In the case of Ethereum, this means ‘stretching’ the stake in Ethereum validators to secure networks beyond Ethereum’s consensus. In theory, this sounds great. More networks, more! In fact, restaking could unlock the world of modular rollups, abundant blockspace, and limitless scalability, or it could lead to network catastrophe.

In this video, I speak to Walter from Gauntlet, global risk manager for several top DeFi protocols.

We unpack the mystery of restaking from first principles:

– Proof of Stake Ethereum since the Merge
– Eigenlayer architecture and AVS applications
– What you can expect from Eigenlayer rewards

Blockchain security has its costs, and you can get paid for providing such security.

DYOR and don’t get rekt.

Cheers,

Robbie