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Addendum: Endgame Perils of Restaking - by Tripoli

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Clarifying some details from Endgame Perils of Restaking.

A supplement to Endgame Perils of Restaking. Restaking protocols are explicitly framed as opt-in, but when we examine how out-of-protocol yield distorts the incentive structures of the Ethereum Network, we see that over time, restaking can become a macroscopically coercive force on all validators. The subsidization of an open-set of validators allows adopters to operate in a lower base APR environment and out-compete non-adopting validators. This dynamic is not unique to restaking; it is also observed with liquid staking tokens and MEV-boost. However, the three have different risk factors…

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