Key Points
P2P.org, an Ethereum blockchain validator and provider of noncustodial staking tools, is taking steps to enhance staking rewards with a new API integration.
The firm has incorporated an automated, end-to-end Restaking API, enabling users to restake Ether (ETH) on decentralized staking protocols such as EigenLayer, as announced on May 27.
Restaking API and Ethereum Staking
The recently launched Restaking API integrates with P2P.org’s existing Ethereum API, allowing intermediaries to both stake ETH and restake it on EigenLayer.
P2P.org CEO Alex Esin expressed that intermediaries are constantly looking for ways to add value for their clients and stand out in a competitive market.
He further explained that the new Restaking API is a powerful tool that aids in achieving this goal.
He added that their clients can now give their users the option to easily restake ETH, maximizing their staking rewards and airdrop opportunities directly from their own platforms.
Staking on Ethereum refers to participating in Ethereum’s transaction validation process, which followed Ethereum’s transition to a proof-of-stake (PoS) consensus protocol from a proof-of-work (PoW) protocol in 2022.
Staking on Ethereum involves depositing, or “locking up,” 32 ETH to activate validator software and earning staked ETH for holding Ether on a crypto wallet, an exchange, or a staking pool.
With Ethereum restaking, users can convert staked ETH to simultaneously stake on another Ethereum protocol and extend crypto-economic security to additional applications on the network.
Ethereum restaking is a new concept in the crypto market and was introduced by EigenLayer, which launched on the Ethereum mainnet in April 2024.
P2P.org’s new Restaking API platform offers multiple rewards, including staking and restaking rewards, Secret Shared Validator incentives, EigenLayer future rewards, as well as anticipated Actively Validated Services’ airdrops, all accessible through a single integration point.
While restaking provides new methods to support diverse blockchain projects using staked Ether, the process has some associated concerns.
One common concern about restaking is the allocation of funds repeatedly to similar validators, increasing both yield and risk.
In 2023, Ethereum co-founder Vitalik Buterin warned that restaking protocols could expose the blockchain to significant systemic risk.
