[My thoughts on Restaking and two projects with high returns -1]

1. What is Restaking?

Restaking, Chinese: re-pledge. It refers to: re-mortgaging assets that have been mortgaged in different protocols or networks.

For example: If you pledge ETH on platform A, you will get a pledge certificate for rETH after staking, and then pledge rETH on platform B.

2. What is the principle of Restaking?

The ReStaking network is similar to other networks, the only difference is that it accepts more assets with low volatility, low risk, and added security.

3. Advantages and Disadvantages of Restaking

advantage:

(1) Pledge must lock the tokens and reduce selling;

(2) Re-pledge unlocks the liquidity of LSD and LP tokens, providing more liquid asset options for DeFi;

(3) The income increases. Once you pledge, you can re-pledge on multiple networks, and the pledger can obtain the income from multiple projects;

shortcoming:

(1) Asset risk. If the pledged project is not serious, it may cause the project to lose money;

(2) Smart contract risks. If the pledge network is not secure, it may be vulnerable to hacker attacks and pledged assets may be stolen;

4. Prediction on the Restaking track

Currently, the largest staking market in DeFi has a TVL of US$20 billion and is constantly expanding, which provides numerous opportunities for the market growth of Restaking.

At the same time, the DeFi infrastructure will gradually improve with the explosion of Restaking.

It is expected that Restaking will become an indispensable part of DeFi in the near future.

#sui #APT #SHIB