Restaking’s stacked risk: synthetic DeFi yields, leverage and centralization concerns

Laura Wallendal argues that restaking in DeFi mostly recycles staked ETH into synthetic yields fueled by token emissions, VC subsidies and speculative fees instead of productive activity. She warns that using the same collateral across multiple protocols compounds slashing and governance risks, concentrates power among a small group of large validators and has yet to show real product-market fit beyond speculation.