Benefits of restaking

For protocols

The burden of bootstrapping its own trust network is mitigated — as the new protocol could simply purchase pooled security via EigenLayer, rather than creating and maintaining its own trust network.

For validators / restakers

Restaking creates an important driver of value accrual as $ETH stakers receive additional yields on top of their $ETH staking rewards — with $ETH stakers expected to generate ~$11bn (or ~4.5x) of annual incremental revenue by 2028. Validators are also able to rehypothecate their $ETH across many different protocols, reducing the marginal cost of their validator operations.

For Ethereum

Restaking improves cryptoeconomic security for Ethereum, as fragmented pools of security move back to create more unified pool — making Ethereum more secure and expensive to attack.

The Restaking Flywheel

Higher yields for $ETH via restaking > More demand for $ETH > Lower supply of $ETH as existing holders hold onto their $ETH and new buyers purchase $ETH > $ETH price increases > Higher yields for $ETH