Ethereum Developer Defends 'Restaking' Despite Buterin's Warnings
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Sreeram Kannan founded EigenLabs and created EigenLayer, which enables "restaking" - repurposing staked ETH for validating other apps.
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Vitalik Buterin warned restaking could pose systemic risks, but Kannan believes liquid staking already poses similar risks.
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Ethereum's plan to slow validator growth will also slow LST and restaking growth, but Kannan agrees with Ethereum's conservative approach.
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EigenLayer creates new staking reward opportunities beyond just Ethereum staking rewards.
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There is a limit to how much Ethereum's shared security model can support, but it can likely accommodate more use cases over time.