Restaking is a derivative behavior of liquidity staking, which can be understood as a secondary pledge on the basis of liquidity staking. . It refers to re-staking a token (liquidity pledged derivative LSD) to earn secondary income.

Restaking is usually divided into two situations: re-staking on the same protocol or re-staking on other protocols

• Re-staking on the same protocol refers to the transfer of tokens and The staking rewards will continue to be pledged in the original agreement to increase future staking income.
• Re-staking on other protocols refers to re-staking tokens to other protocols to earn rewards from other protocols and release liquidity externally.

In the second case, Restaking can earn two rewards respectively. One is from the original agreement; the other is from the newly pledged agreement. In addition to the release of liquidity, Restaking can also increase the value of the network, thus improving the decentralization and security of the network.

In general, Restaking achieves:

• Liquidity release: Pledge assets such as LSD to Other protocols can unlock liquidity in assets.
• Reward enhancement: Through Restaking, stakers can obtain compound returns.
• Improved network security: As assets are pledged a second time, the value of the network will increase, thereby improving the security and decentralization of the network.