Ethereum’s re-staking protocol and LRT are generating a lot of attention in the cryptocurrency space. Based on the PoS consensus mechanism and a nearly $112 billion economic security fund, the re-staking concept provides a new way to contribute to network security while bringing additional rewards. The successful launch of Eigen Layer and its rapid rise to the second largest DeFi protocol further demonstrate the potential of the re-staking concept and technology. However, as LRT develops and the complexity of the re-staking mechanism increases, new risks have emerged involving security, financial stability, and potential impacts on the stability of the future Ethereum consensus protocol. Nonetheless, re-staking rewards are laying the foundation for a new class of DeFi protocols, and the intense focus on re-staking opportunities is becoming one of the biggest crypto themes this year.