Restaking can make DeFi more secure for institutional traders
Restaking has rapidly gained attention in DeFi, with major protocols holding over $12 billion in total value locked. It aims to enhance capital efficiency for validators and redefine security provisioning across decentralized systems. While crypto-native participants embrace restaking, institutions remain cautious due to unclear risks. Restaking introduces friction to deter bad actors without compromising composability, allowing validators to secure new protocols with already-staked assets, thus creating a second validation layer. This model aligns economic incentives with infrastructure needs, enabling shared security among protocols. Slashing risk is segmented, transforming it into a quantifiable liability, which could lead to the development of insurance markets. Restaking also diversifies exposure across protocols, making network-level attacks more difficult. It enhances oracle credibility by tying economic weight to performance-based incentives. As infrastructure risk becomes more manageable, restaking may facilitate institutional entry into DeFi, bridging the gap between decentralized and traditional finance.
