Restake Finance is a decentralised finance (DeFi) protocol that transforms the approach to yield farming and liquid staking. It offers a unique solution for maximising rewards through the power of liquid staking tokens (LSTs). Specifically designed for EigenLayer, it enables users to earn both Ethereum staking rewards and EigenLayer native rewards without the need to lock assets .
Restake Finance operates on the Ethereum blockchain, utilising its Proof of Stake (PoS) consensus mechanism. Integrated with EigenLayer, it allows the reuse of ETH staked on the Ethereum beacon chain to secure new protocols. Through the concept of rehypothecation in DeFi, it enables the use of LSTs as cryptoeconomic security. The protocol uses DAO-controlled smart contracts to facilitate earning on Ethereum while managing the staking process. Users deposit LSTs like stETH and receive rstETH, fully backed and tradeable .
The exact founding details of Restake Finance are not explicitly mentioned, but it is governed by a DAO. The protocol aligns with the community's interests through this decentralised framework . Notable milestones include the launch of EigenLayer's mainnet in June 2023, which catalysed Restake Finance's development as a modular liquid staking protocol. Audits by OpenZeppelin have ensured its security, and partnerships, such as with Ankr Staking, have expanded its ecosystem .