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28/05/24
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P2P.org Announces ETH Restaking on EigenLayer
On May 27, P2P.org announced the integration of an automated, end-to-end Restaking API which allows restaking of ETH on decentralized staking protocols such as EigenLayer.
P2P.org which provides noncustodial staking tools, is working towards the optimization of staking rewards through the new integration with its existing API to allow intermediaries to both stake ETH and restake it on EigenLayer.
“Intermediaries are continually seeking ways to add value for their clients and differentiate their services in a crowded market. “With our new Restaking API, we are providing a powerful tool that does just that,” said P2P.org CEO Alex Esin.
Further, Esin said the Ethereum blockchain validator’s clients can now provide their users with an easy restaking of ETH to maximize their staking rewards as well as airdrop opportunities directly from their own platforms.
Transactions on the Ethereum blockchain are validated through staking. This began after the blockchain shifted from a proof-of-work protocol to a proof-of-stake protocol two years ago.
Ethereum staking has to do with participants depositing or locking up 32 ETH towards activating validator software and earning staked ETH when they hold ETH on a cryptocurrency wallet, crypto exchange, or staking pool.
Ethereum restaking allows users to achieve simultaneous staking of staked ETH on another Ethereum protocol towards extending crypto-economic security to more applications on the blockchain. EigenLayer introduced the concept of Ethereum restaking and was launched on the Ethereum mainnet last month.
However, participants within the crypto space have raised concerns regarding the process, including repeated allocation of funds to similar validators, increasing both yield and risk. Last year, Ethereum co-founder Vitalik Buterin said restaking protocols may expose the blockchain to remarkable systemic risk.
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