Restaking Changed The Game

Restaking makes more sense when you stop thinking about it as yield farming and start seeing it as security infrastructure. You're not just earning more, you're extending Ethereum's security to new domains.

The capital efficiency is insane. Before restaking, every new protocol needed to bootstrap its own validator set. Convince people to lock capital, build economic security from scratch. Now you just borrow Ethereum's security.

The slashing conditions get complex though. Your staked ETH is now securing multiple things. Misbehave on any of them and you get slashed. The risk profile changes in ways people don't fully appreciate.

The AVS ecosystem is growing and the variety is fascinating. Oracles, bridges, data availability layers, sequencers. All secured by restaked ETH. The shared security thesis is playing out in real time.

The centralization concerns are real. A few large operators control most of the restaked capital. If they coordinate or get compromised, multiple protocols fail simultaneously. We're creating systemic risk.

Still, I think restaking is net positive for the ecosystem. Bootstrapping security is hard. Sharing security is efficient. We just need to manage the tail risks carefully.