Definition
A restaking token is a cryptographic representation of capital that has already been staked and is being reused as security for one or more additional protocols. It typically emerges in restaking architectures where base-layer stake, often held in a liquid staking token, is opt‑in delegated to secure external services or middleware. The restaking token encodes the holder’s position in this extended security arrangement, including exposure to additional reward streams and slashing conditions. It functions as an on-chain accounting unit that tracks how a given stake allocation participates in restaked security commitments.
Conceptually, a restaking token sits on top of an existing staking or liquid staking layer and reflects the rehypothecation of that staked collateral. It may be minted when a user enrolls their stake into a restaking contract and burned or updated when that position is exited or reconfigured. Because it is usually transferable and composable, it can be integrated into other DeFi primitives, similar to how liquid staking tokens are used in yield farming. Its design is closely tied to the underlying restaking framework, such as EigenLayer, which defines the security, reward, and slashing semantics the token represents.
Context and Usage
In advanced DeFi and staking ecosystems, a restaking token formalizes the relationship between base staking positions and additional on-chain security obligations. It distinguishes the simple act of staking from the more complex practice of restaking, where the same economic stake backs multiple services. When built on top of a liquid staking token, it can be viewed as a higher-order derivative that layers new risk and reward characteristics on an existing staking position. This makes it a key conceptual tool for understanding how restaking redistributes security guarantees and economic incentives across protocols.
Restaking tokens are often discussed alongside liquid staking tokens, restaking frameworks like EigenLayer, and multi-protocol yield strategies such as yield farming. Unlike a basic staking position, which is usually locked to a single consensus or validation role, a restaking token encodes multiplexed security commitments that may be subject to additional slashing vectors. Its existence allows on-chain systems to programmatically reference and manage these extended commitments, while giving market participants a standardized object for pricing and risk assessment of restaked capital.