P2P.org, a validator on the Ethereum blockchain and a provider of noncustodial staking tools, is taking steps to enhance staking rewards through a new API integration.
On May 27, P2P.org announced the integration of an automated Restaking API, which enables users to restake Ether (ETH) on decentralized staking protocols like EigenLayer.
The Restaking API seamlessly connects with P2P.org’s existing Ethereum API, allowing intermediaries to stake ETH and then restake it on EigenLayer.
P2P.org CEO Alex Esin stated, “Intermediaries are constantly looking for ways to add value for their clients and stand out in a competitive market. With our new Restaking API, we are offering a powerful tool that accomplishes just that.”
Ethereum staking refers to participating in Ethereum’s transaction validation process after the network’s transition from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus protocol in 2022.
When staking on Ethereum, users deposit or “lock up” 32 ETH to activate validator software and earn staked ETH by holding Ether in a crypto wallet, exchange, or staking pool.
Through Ethereum restaking, users can simultaneously stake their ETH on another Ethereum protocol and extend crypto-economic security to additional applications on the network.
EigenLayer introduced the concept of Ethereum restaking in the crypto market. The protocol launched on the Ethereum mainnet in April 2024.
P2P.org’s new Restaking API platform offers various rewards, including staking and restaking rewards, Secret Shared Validator incentives, EigenLayer future rewards, and anticipated Actively Validated Services’ airdrops. All of these rewards can be accessed through a single integration point.
While restaking presents new opportunities to engage with diverse blockchain projects using staked Ether, there are concerns associated with the process. One common concern is the repeated allocation of funds to similar validators, which increases both yield and risk.
In 2023, Ethereum co-founder Vitalik Buterin issued a cautionary statement, highlighting the potential systemic risk that restaking protocols could expose the blockchain to.
Related: The Hong Kong Securities and Futures Commission is considering allowing Ether staking for ETF issuers.
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