Guys, it seems like restaking protocols are becoming the biggest narrative in ethereum.
Before, I used to be so much confused about staking, restaking, liquid staking concepts. But when I used them, it was clear.
I have been smashing my head with this eigenlayer narative for about 4 months now mainly on puffer, an Ethereum liquid restaking protocol built on EigenLayer. Being on the puffer boat for a while and looks like they have something for the community. Thou, i still cant decide if i want to put my eth into all of these restaking contracts.
Anyways, i’ve been thinking about this lately, is Restaking good or dangerous for the Ethereum ecosystem. I read about it somewhere last time that If anything goes wrong with restaking, it could have spiral effect and could devastate the price of ETH.
Restaking is good for ethereum ecosystem. It helped the blockchain keep its liquidity. But, once you restaked your ETH into the restaking platform, it got exploited. You lost your money. Also, volatility can drop the value of your ETH.
But i can see a lot of positives from restaking platforms, i.e. Airdrop, Capital increase (depending on volatility), and many more. And always remember this, not your key, not your coin.
Man, you should've restaked earlier coz like every single one of them conducted airdrops.
But yea, if you hold ETH, you probably might as well just restake stETH or something — just take into consideration exploit risk, so don't go 100% all in on your ETH.
But, sometimes, the airdrop is not really paying off. The price drop may decrease our staking's value, but it depends on timing.
I've been restaking my ETH when it was 1.9k, then it moved up to 4k, and i sold it, got $50 of airdrop from restaking my ETH. And it's very obvious that those who restaked their ETH when it was 4k are losing a lot now.