Innovation is rushing forward at unprecedented speeds in the decentralized finance world, opening the doors to new ways for investors to maximize their returns on digital assets. One of the hottest trends in 2024 was retaking, which allows DeFi users to stake stake tokens across various protocols and increase their returns without adding new capital.
Restaking is a strategy for using deployed capital locked in smart contracts to secure blockchain networks. Proof-of-stake blockchains like Ethereum are secured by their users, who “stake” the network’s own crypto assets into smart contracts to verify and confirm transactions, and earn rewards for doing so. But even though their assets are at stake, they cannot be used for anything else.
That’s changing with redraw protocols, which give investors a “staked token” for each native coin they stake. For example, if someone stakes 1 ETH, he or she will receive 1 new stETH token in return, which can then be used with other DeFi protocols to earn an additional source of yield.
In other words, retaking allows investors to multiply their returns on their DeFi investments, maximizing their profit potential while providing additional security to the network.
Let’s take a look at some of the most important readmission protocols to keep an eye on in 2025 and see what sets them apart:
1. EigenLayer
According to DeFiLlama, EigenLayer is the best-known readmission protocol of all and has a total value of over $15 billion. It is built on the Ethereum blockchain and offers investors a way to improve cryptographic security by taking back their staked assets.
By staking ETH with EigenLayer, users receive sETH tokens that can be deployed to secure decentralized applications built on top of Ethereum. EigenLayer achieves this through the use of smart contracts, giving stakers the chance to earn additional rewards on top of their base wagering returns while simultaneously providing security to what are known as “actively managed services.”
Through this mechanism, EigenLayer allows dApps to secure themselves without boosting their own liquidity, while increasing capital efficiency for Ethereum’s stakers. It’s a new concept that addresses the problem of security fragmentation caused by hundreds of different protocols all competing for the same pool of capital to secure themselves. Instead of competing, they can share that capital.
EigenLayer therefore offers greater security and flexibility for dApp developers and improved capital efficiency for investors. By leveraging Ethereum’s solid security foundation, it can significantly increase the trust users have in protocols built on or integrated with that network.
Furthermore, developers are given the freedom to build without any architecture-related restrictions, meaning they can focus more on innovation rather than worrying about security. As an added benefit, EigenLayer helps reduce transaction costs for dApps hosted on Ethereum Layer-2 through the decentralized data availability layer, which is also hosted on Ethereum.
For investors, EigenLayer offers some tempting rewards, but they should still be aware of the potential risks associated with resuming, such as budget cuts and centralization.
2. Symbiotic
Differentiating itself from other platforms with its flexible and modular approach, Symbiotic has embraced a permissionless and shared security model that can support any ERC-20 compliant token, making it an attractive option for dApps and projects looking for deployment versatility.
Symbiotic is notably backed by Lido, the largest standard Ethereum staking platform, which is increasing confidence in its offering, while Paradigm and CyberFund are among its backers. It is also highly composable and easily integrates with DeFi projects on Ethereum, allowing for more customization and yield stacking strategies for DeFi users. To date, it has amassed $2.16 billion in TVL.
In addition, Symbiotic has created an innovative vault system that acts as a kind of automated middle layer that manages user delegation strategies.
A final benefit of Symbiotic is its commitment to decentralization and immutability. The core smart contracts are not upgradable, similar to the approach developed by decentralized exchange platform Uniswap. By doing this, it eliminates the risks associated with remote governance and new vulnerabilities arising.
3. SatLayer
One of the newest kids on the recovery block is SatLayer. Although new to the industry, it stands out because it is not focused on Ethereum, but rather the world’s most valuable cryptocurrency, Bitcoin.
SatLayer is the first dedicated withdrawal platform for BTC holders. The smart contacts are deployed on Babylon Chain, a Bitcoin Layer-2 network, and allow BTC holders to stake their coins to secure so-called “Bitcoin Validated Services,” which are dApps and proof-of-stake networks that depend on Bitcoin. for their safety.
It’s an intriguing concept because BTC is often considered an inactive asset as it cannot be easily used in DeFi, meaning there are few opportunities for Bitcoin holders to generate returns.
SatLayer therefore increases the utility of Bitcoin, so investors can do more than just “hodl” and hope the price rises. On the technical side, SatLayer introduces slashing to protect against malicious activity. What’s interesting is the flexibility of this slash mechanism, and developers building Bitcoin Validated Services can divert slash assets to their protocol as revenue or simply burn those tokens. It is said that this can help create greater incentives to encourage responsible behavior among node operators.
SatLayer is backed by investors including Castle Island Ventures, Hack VC and Franklin Templeton.
4. Etherfi
As the second largest rebalancing protocol in the industry, we can’t leave out Etherfi, which currently boasts a TVL of $8.23 billion. Like EigenLayer, it leverages the security of the Ethereum network to support other protocols but is differentiated in its approach, with users staking ETH to receive eETH, which can be used in dozens of different DeFi protocols.
Similar to EigenLayer, investors can maximize their wagering rewards. Additionally, it also partners with EigenLayer so that investors can use their eETH tokens to secure Ethereum-based AVSs.
Launched in March 2024 alongside an airdrop, Etherfi also allows users to earn loyalty points, potentially increasing their rewards in the future.
The protocol received $23 million in a Series A funding round led by Bullish Capital and CoinFund shortly before it launched, and its TVL grew rapidly after that announcement, from just $103 million to $1.66 billion by the end of that month. As we enter 2025 and retaking continues to grow, we can expect Etherfi to assert itself as a crucial mover and shaker in the ongoing innovation around retaking.
5. Solaag
Solayer is the first recovery protocol native to the Solana blockchain ecosystem. Considered the fastest mainstream blockchain in the industry, Solana is known for its fast transaction processing times and low gas fees, and has spawned a healthy ecosystem of DeFi applications.
Solayer allows investors to reuse their staked SOL tokens across many of these Solana-based DeFi protocols to maximize returns. Users benefit from Solana’s fast transaction speeds, meaning there is virtually no delay when sending funds to a DeFi protocol or withdrawing them, as well as its ultra-low transaction fees.
Solayer leverages Solana’s PoS principles to extend Solana’s security to other decentralized applications and systems, with users participating in a decentralized network of validators, contributing to the broader Solana ecosystem. What’s different about Solayer is that while its Ethereum-based cousins focus on non-mainnet systems like cross-chain bridges and oracles, it starts with native Solana dApps. With this in mind, Solayer also has plans to create a unified liquidity layer for all its delegates using the sSOL token, which has applications in collateral and spot trading.
The platform launched earlier this year and now has $315.5 million in TVL, making it the twelfth largest protocol in the Solana ecosystem.
Resumption is increasing
The revocation industry is growing rapidly and shows no sign of stopping as we head into 2025. Investors continue to pour money into revocation protocols, and they are poised to have a dramatic impact on the DeFi industry, increasing liquidity and returns to attract more individual and institutional investors. .
By allowing investors to increase their returns without additional capital, rebalancing offers a tempting opportunity for savvy DeFi investors to increase their returns. It’s quickly turning into a magnet for crypto investors, and it benefits the blockchain ecosystems as a whole by increasing the security of smaller protocols that have struggled to do so on their own.
Overall, resuming offers strong incentives for DeFi investors while boosting the health of blockchains, and it’s a winning combination that will fuel even more growth in 2025. It doesn’t matter if you’re a fan of Ethereum, Bitcoin, or Solana, resuming will pave the way for more efficient and diversified rewards.
