{"id":20051,"date":"2024-05-09T08:00:09","date_gmt":"2024-05-09T08:00:09","guid":{"rendered":"https:\/\/coinengineer.io\/?p=20051"},"modified":"2024-05-09T06:14:24","modified_gmt":"2024-05-09T06:14:24","slug":"unpacking-restaking-the-crypto-economys-answer-to-financial-engineering","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/unpacking-restaking-the-crypto-economys-answer-to-financial-engineering\/","title":{"rendered":"Unpacking Restaking: The Crypto Economy&#8217;s Answer to Financial Engineering"},"content":{"rendered":"<p>The credit crunch that followed the 2008 global financial calamity, which was connected to the collapse of<strong> Lehman Brothers,<\/strong> made conventional circles of finance wary of the risks of idle money. As a way to amplify margins, the concept of rehypothecation eventually arose, through which collateral was used to facilitate trades. Fast forward to today, and the cryptocurrency industry has birthed its own iteration of financial engineering: <strong>restating.<\/strong><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/coinengineer.net\/blog\/unpacking-restaking-the-crypto-economys-answer-to-financial-engineering\/#The_Evolution_from_Rehypothecation_to_Restaking\" title=\"The Evolution from Rehypothecation to Restaking\">The Evolution from Rehypothecation to Restaking<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/coinengineer.net\/blog\/unpacking-restaking-the-crypto-economys-answer-to-financial-engineering\/#MetaMask_Takes_on_MEV_Protecting_Users_in_the_Crypto_Wild_West\" title=\"MetaMask Takes on MEV: Protecting Users in the Crypto Wild West\">MetaMask Takes on MEV: Protecting Users in the Crypto Wild West<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"The_Evolution_from_Rehypothecation_to_Restaking\"><\/span>The Evolution from Rehypothecation to Restaking<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Rehypothecation, which is like the notion of restaking,<\/strong> is very popular, particularly in the world of <a href=\"https:\/\/coinengineer.net\/blog\/ethereums-buterin-proposes-eip-7702-for-account-abstraction\/\">Ethereum<\/a>.<strong> An EigenLayer-powered ETH 2.0<\/strong> <strong>staking<\/strong> system means more income for asset holders by realizing locked-up ETH through derivatives. As a staggering amount of ETH is now re-staked, the phenomenon is expanding to other chains, like <a href=\"https:\/\/coinengineer.net\/blog\/solana-hackathon-ore-wins-despite-bottlenecks\/\">Solana<\/a>, with new players like Jito ushering the trend into the market.<\/p>\n<p>Backers, on the other hand, talk about blockchain invincibility, but critics warn that these risks resemble the 2008 financial crisis. Altogether, ETH stakers, despite lower incomes compared to conventional staking rates, are around 3%.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"MetaMask_Takes_on_MEV_Protecting_Users_in_the_Crypto_Wild_West\"><\/span>MetaMask Takes on MEV: Protecting Users in the Crypto Wild West<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Along with that, the crypto community suffers from an <strong>MEV<\/strong> similar to high-frequency trading in a conventional market. In the same line of defense, MetaMask, the most popular Ethereum wallet, introduces a new feature that imitates dark pools\u2019 mechanisms for countering MEV abuse in order to protect users from price manipulation.<\/p>\n<p>As the crypto economy mirrors and diverges from traditional finance, one thing remains clear: the art of making as much money as possible while at the same time protecting your investments is a task of ages.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The credit crunch that followed the 2008 global financial calamity, which was connected to the collapse of Lehman Brothers, made conventional circles of finance wary of the risks of idle money. As a way to amplify margins, the concept of rehypothecation eventually arose, through which collateral was used to facilitate trades. Fast forward to today,<\/p>\n","protected":false},"author":6,"featured_media":18395,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,1],"tags":[3652,105,5982,5981,4554],"class_list":["post-20051","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-genel","tag-eigenlayer","tag-ethereum","tag-lehman-brothers","tag-rehypothecation","tag-restaking"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Unpacking Restaking: The Crypto Economy&#039;s Answer to Financial Engineering - Coin Engineer<\/title>\n<meta name=\"description\" content=\"Explore the rise of restaking in the crypto economy, echoing traditional finance&#039;s rehypothecation, while MetaMask introduces measures against MEV exploitation, bridging the gap between crypto innovation and financial security.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/unpacking-restaking-the-crypto-economys-answer-to-financial-engineering\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Unpacking Restaking: The Crypto Economy&#039;s Answer to Financial Engineering - Coin Engineer\" \/>\n<meta property=\"og:description\" content=\"Explore the rise of restaking in the crypto economy, echoing traditional finance&#039;s rehypothecation, while MetaMask introduces measures against MEV exploitation, bridging the gap between crypto innovation and financial security.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/coinengineer.net\/blog\/unpacking-restaking-the-crypto-economys-answer-to-financial-engineering\/\" \/>\n<meta property=\"og:site_name\" content=\"Coin Engineer\" \/>\n<meta property=\"article:published_time\" content=\"2024-05-09T08:00:09+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-05-09T06:14:24+00:00\" \/>\n<meta name=\"author\" content=\"Tanju Akb\u0131y\u0131k\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Tanju Akb\u0131y\u0131k\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/coinengineer.net\/blog\/unpacking-restaking-the-crypto-economys-answer-to-financial-engineering\/\",\"url\":\"https:\/\/coinengineer.net\/blog\/unpacking-restaking-the-crypto-economys-answer-to-financial-engineering\/\",\"name\":\"Unpacking Restaking: The Crypto Economy's Answer to Financial Engineering - 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