Restaking is useful, but it's the most scary in its permissionless state

We could see a scenario where a "restaking rewards mania" akin to DeFi Summer mania enables grossly rehypothecated staking of several services with the same initial asset. Every loop adds extra yield, but stretches consensus ever thinner.

space rock strategy + research.    

Dev/econ @ primodiumgame.twitter

Free time dedicated to Mechanism Design, Data Privacy, and Onchain Games.

This can stumble in several ways, and the fallout is damaging for all involved.

Bugs or large slashing event in one restaked consensus cascades to all other restaking operations that are looped in.

Enough restaking further increases probability of deliberate hostile action where the payout > slashable assets