Restaking Research with Naveen & Tarun
Zero Knowledge
Restaking Creates Interlinked Outcomes
In a matching market, such as employment, individual matches typically function independently, allowing for separable payoffs and positive externalities for all parties involved. However, in the context of restaking, when a validator is matched to multiple services, the decisions made by one validator can adversely impact others. Specifically, if a validator choosing to restake ETH for a new service incurs consequences for their first match with Ethereum, it can lead to negative externalities. The risk lies in the potential slashing of staked ETH due to actions taken by the new service, demonstrating how interconnected services can affect overall market stability.
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