restaking
In this article, you will learn:
➔ What’s Restaking?
➔ Why’s it Useful?
➔ Types of Restaking
➔ The Risks
➔ How do I place my tokens in the restaking?
What’s Restaking?
Restaking is a concept first introduced by the XBANKING project — this is the first project to develop this idea and produce products related to it. The idea of Restaking is to re-stake liquid staked tokens to provide security and make it possible for stakers (users) to receive rewards.
Restaking is a new concept in the world of cryptocurrency security that enables you to use your Ethereum (ETH), The Open Network (TON), Solana (SOL) and others more than once at the consensus layer. For instance, if you’re staking your Ethereum directly or using a liquid staking token (LST), you can opt to use a service like XBANKING to earn additional rewards on your stake. up to 12% APR.
XBANKING is a restaking marketplace that allows you to deposit your LSTs into different pools that support various applications and services on the Ethereum ecosystem. By doing so, you are not only earning staking rewards from your LSTs, but also restaking rewards from the pools you join.
The idea behind restaking is to leverage the security and trust of Ethereum’s validators and staked tokens to benefit smaller and newer networks that need more protection from attacks or failures. By restaking your ETH or LSTs, you are effectively lending your stake to these networks and protocols, and helping them achieve higher security and decentralization.
Why’s it Useful?
Ethereum Proof-of-Stake (PoS) is a system that uses its own token, ETH to secure itself Every validator has to prove that it has a “stake” in the system You can also think of stake as the “trust” placed to secure the network, the higher the stake, the higher the trust.
It’s like when you trust a girl so you give her a lot of money ̶t̶h̶e̶n̶ ̶o̶n̶e̶ ̶d̶a̶y̶ ̶s̶h̶e̶ ̶d̶i̶s̶a̶p̶p̶e̶a̶r̶s̶ ̶w̶i̶t̶h̶ ̶y̶o̶u̶r̶ ̶m̶o̶n̶e̶y̶ Anyhow, ETH staked on Ethereum has been increasing at a rapid pace, from 2.5m ETH in Jan 2021 to 34.5m ETH in the present.
What this means is that there’s a lot of ETH and a lot of trust to secure the network Then one day XBANKING came along and be like “why don’t we take some of these trust and share it with other smaller networks & applications This is called “Restaking”.
Restaking presents an opportunity for these smaller networks “Actively Validated Services (AVS)” to borrow the trust to secure their platform XBANKING acts as a Decentralized Trust Marketplace that gets a cut of the fees on the rewards that flow from the AVS to Restaker.
The liquid staking tokens Ethereum (stETH), The Open Network (tsTON, stTON, wsTON, hTON, Solana (JitoSOL) are now available for restacking on the https://xbanking.org platform.
Types of Restaking
There are 3 main types of restaking — Native, Liquid, and Superfluid 𝐍𝐚𝐭𝐢𝐯𝐞 MAV 𝐑𝐞𝐬𝐭𝐚𝐤𝐢𝐧𝐠 — Validators natively restaked their ETH on the Beacon Chain to XBANKING.
𝐋𝐢𝐪𝐮𝐢𝐝 𝐑𝐞𝐬𝐭𝐚𝐤𝐢𝐧𝐠 — Liquid Staking Token (LST) holders restake their LSTs to XBANKING smart contract directly on XBANKING front-end Native Restaking is operationally more difficult to operate vs Liquid Restaking as it requires operating Ethereum Validator Node
Native MAV Restaking is operationally more difficult to operate vs Liquid Restaking as it requires operating Ethereum Validator Node.
Liquid Restaking protocols (LRT) flow is as follows User deposits an LST token on LRT platform ➙ The LRT protocol takes the LST and restake on XBANKING ➙ LRT protocol offers a derivative liquid restaking token Similar to how Lido gives stETH in exchange for ETH.
The Risks
𝐓𝐡𝐞 𝐑𝐢𝐬𝐤𝐬 𝐔𝐧𝐢𝐧𝐭𝐞𝐧𝐭𝐢𝐨𝐧𝐚𝐥 𝐒𝐥𝐚𝐬𝐡𝐢𝐧𝐠 — There could be a risk of mistakenly slashed due to an accident or a smart contract error Given the nature of extending Ethereum’s trust to other networks, the risk of unintentional slashing is higher
𝐎𝐩𝐞𝐫𝐚𝐭𝐨𝐫 𝐂𝐨𝐥𝐥𝐮𝐬𝐢𝐨𝐧 — operators (validators) colluding to use the same restaked ETH to secure & take control of multiple networks The operators could potentially attempt an attack to take control of the TVL on these networks.
𝐂𝐞𝐧𝐭𝐫𝐚𝐥𝐢𝐳𝐚𝐭𝐢𝐨𝐧 — potential risk of computationally-capable validators dominating the restaking space in various networks, Since large computational resources & operational costs are needed to participate effectively in specific modules.
How do I place my tokens in the restaking?
Go to https://xbanking.org.
Click “launch app”.
Select token (liquid staking token (stETH, wsTON, JitoSOL, tsTON or other), connect wallet, stake!.
Done!
Links:
Restaking: https://xbanking.org
