Restaking increases risk rather than creating value

Source: DigitalToday Original Title: “Staking, Increases Risks Rather Than Creating Value” Original Link:

Staking is gaining attention as a new revenue model in decentralized finance(DeFi), but it is actually being pointed out that it increases risks rather than profits.

Staking involves reusing already staked assets to earn additional rewards, but this is analyzed as acting more like simple leverage rather than efficiency. The same Ethereum(ETH) serves as collateral across multiple protocols, which only amplifies the risk.

If a governance failure or slashing event occurs in one protocol, the impact can spread to higher-level protocols, potentially causing collateral to disappear entirely. There are also concerns that only large operators can participate in managing complex validator positions, which undermines the essence of decentralization.

Staking rewards do not come from productive activities. This structure is similar to traditional financial reuse, where instead of creating real value, the same assets are repackaged. The profits mainly come from increased token issuance, venture capital liquidity incentives, and speculative fees from highly volatile native tokens. This structure is considered unsustainable and not connected to tangible economic value.