Restaking promises yield but delivers only stacked risk and no real value

Restaking promises yield but delivers only stacked risk and no real value

Restaking yields come from token emissions and VC incentives, not productive activity. Complex models concentrate power among large operators, while compounding risk cascades.

Opinion by: Laura Wallendal, co-founder and CEO of Acre

Restaking is often heralded as the next big thing in decentralized finance (DeFi) yields, but behind the hype lies a precarious balancing act. Validators are stacking responsibilities and slashing risks, incentives are misaligned, and much of the $21 billion in total value locked (TVL) is held by a handful of whales and venture capitalists rather than the broader market.

Let’s break down why restaking lacks real product-market fit and how it compounds more risk than it yields. Most importantly, we need to confront the uncomfortable questions: Who profits when the system fails, and who is left holding the risk?

Read more

If you liked the article, do not forget to share it with your friends. Follow us on Google News too, click on the star and choose us from your favorites.

If you want to read more News articles, you can visit our General category.

Source

Leave a Reply

Your email address will not be published. Required fields are marked *