P2P.org, a validator on the Ethereum blockchain and a provider of noncustodial staking tools, is enhancing staking rewards through a new API integration. The company has introduced an automated Restaking API that allows users to restake Ether (ETH) on decentralized staking protocols like EigenLayer. By integrating the Restaking API with P2P.org’s existing Ethereum API, intermediaries can stake ETH and then restake it on EigenLayer. P2P.org CEO Alex Esin stated that the Restaking API provides a powerful tool for intermediaries to add value for their clients and stand out in a competitive market.
Ethereum staking refers to participating in Ethereum’s transaction validation process after the shift from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus protocol in 2022. To stake on Ethereum, users need to deposit or “lock up” 32 ETH to activate validator software and earn staked ETH by holding Ether on a crypto wallet, exchange, or staking pool. With Ethereum restaking, users can simultaneously stake on another Ethereum protocol and extend crypto-economic security to additional applications on the network. EigenLayer introduced Ethereum restaking in April 2024, making it a new concept in the crypto market.
P2P.org’s 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 these rewards can be accessed through a single integration point.
While restaking provides opportunities to diversify 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 cautioned that restaking protocols could expose the blockchain to significant systemic risk.