How Liquid Restaking Enhances DeFi Flexibility

Liquid restaking is a transformative innovation in decentralized finance (DeFi), enhancing its flexibility by allowing staked assets to be reused across multiple protocols. Unlike traditional staking, where assets are locked and unavailable for other uses, liquid restaking enables users to mint derivative tokens representing their staked assets. These derivative tokens can then be traded, lent, or used as collateral within the DeFi ecosystem, unlocking liquidity and increasing capital efficiency. This process not only maximizes the utility of staked assets but also fosters greater interoperability between various DeFi platforms, thereby driving broader participation and innovation in the financial landscape.