Decentralized finance (DeFi) is developing at an incredibly rapid pace. Restaking quickly became one of the most important innovations, allowing users to earn potentially higher returns on staked assets. Restaking involves leveraging staked assets to secure additional networks or services, creating new avenues for earning rewards while maintaining a staked position in another network or service. By taking this approach, it maximizes the use case of staked assets, giving users more flexibility and potential for higher return. As the DeFi landscape continues to mature, restaking will be indispensable in creating the conditions required to promote sustainable growth and adoption.

Understanding Restaking

Restaking takes staked assets further, giving them more uses and allowing users to secure multiple networks at once. With Ethereum (ETH) staking, platforms such as Lido and Rocket Pool make it easy for users to stake ETH. They enable liquidity by utilizing liquid staking tokens like stETH or rETH. These liquid staking tokens can then be further deployed into other DeFi protocols to earn even more rewards. Restaking significantly increases the overall utility of staked assets, such as dfdvSOL. This allows users to continue receiving rewards and maintain their position staked in Solana (SOL). This two-earning potential paired together is what makes restaking so attractive for DeFi users.

In practice, restaking simply means depositing your staked assets into a platform that offers restaking capabilities. The platforms then use those staked assets to secure their own networks and services. 2) They then provide users with rewards, generated through this process, in return for restaking their assets. While the exact mechanisms and rewards differ depending on the platform and social networks in question, the motivations remain the same. The underlying idea is the same, use staked assets to create new ways to earn.

High-APY platforms are pretty much the go-to recommendation for restaking, since they maximized available returns. Ultimately, users need to consider the risks and rewards of each platform when considering where to restake their assets. You’ll review the security of the entire platform and consider the risk of impermanent loss before committing your money. Finally, you’ll think about the big-picture impact of the project.

DeFi's Growth Trajectory

By the end of 2025, industry experts are forecasting total value locked (TVL) in DeFi to reach $200 billion. This next wave will come from more institutional adoption and the emergence of easier-to-use platforms. Such robust growth highlights the burgeoning confidence users are placing in DeFi protocols across the board and their capacity to upend traditional financial systems. Restaking will play an important part in driving this growth, making staked assets more efficient and profitable.

Lido, Rocket Pool, and Aave are noted for their security features and customization options. They tend to boast very high annual percentage yields (APYs), which makes them attractive for those looking to stake and restake. All of these platforms have a clear track record in the DeFi space. This regulatory ecosystem has allowed them to build user trust and attracted billions in venture capital.

So for one example, picture providing 5 ETH as a stake and earning a 5% APY. You’ll still have the chance to win 0.25 ETH every year! Over a more extended period, staking 50 ETH at a 5% APY for 24 months could generate 3 ETH in rewards. These examples show the earning potential of staking and restaking, illustrating how users can earn even more additional assets on their existing staked assets over time.

Maximizing Returns and Managing Risks

Users are empowered to make informed decisions by easily comparing APYs across multiple DeFi platforms to find the highest potential profits. While these are promising benefits to the technology, it’s important to weigh the risks that come with it too, like smart contract vulnerabilities and impermanent loss. Diversification and careful analysis are key approaches to mitigating these risks.

Liquid staking tokens — like stETH or rETH — offer liquidity to users with staked assets. This additional liquidity gives users the ability to engage with other DeFi activities, thus compounding their returns even more. These platforms allow users to restake their assets, providing the potential for increased yields. Unfortunately, this almost always means taking on more risk.

This article is 2025 OKX and is used with permission.