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3. Advanced Course

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  1. 1. What is Taproot?
  2. 2. Blockchain bridges – what are they?
  3. 3. What is Ethereum Plasma?
  4. 4. What is Ethereum Casper?
  5. 5. What is Zk-SNARK and Zk-STARK? 
  6. 6. What is Selfish Mining? 
  7. 7. What is spoofing in the cryptocurrency market? 
  8. 8. Schnorr signatures - what are they? 
  9. 9. MimbleWimble - what is it? 
  10. 10. What is digital property rights in NFT?
  11. 11. What are ETFs and what role do they play in the cryptocurrency market? 
  12. 12. How to verify a cryptocurrency project – cryptocurrency tokenomics 
  13. 13. What is the 51% attack on blockchain?
  14. 14. What is DAO, and how does it work?
  15. 15. Zero-knowledge proof – a protocol that respects privacy 
  16. 16. What is EOSREX?
  17. 17. What is Proof of Elapsed Time (PoET)?
  18. 18. Mirror Protocol – what it is? 
  19. 19. What are synthetic assets? 
  20. 20. How to create your own NFT? 
  21. 21. Definition of DeFi, and what are its liquidations?
  22. 22. New identity system - Polygon ID
  23. 23. Ethereum Foundation and the Scroll protocol - what is it?
  24. 24. What is Byzantine fault tolerance in blockchain technology?
  25. 25. Scalability of blockchain technology - what is it?
  26. 26. Interchain Security - new Cosmos (ATOM) protocol
  27. 27. Coin Mixing vs. Coin Join - definition, opportunities, and threats
  28. 28. What is Ethereum Virtual Machine (EVM) and how does it work?
  29. 29. Soulbound Tokens - what are they, and how do they work?
  30. 30. Definition of LIDO - what is it?
  31. 31. What are Threshold Signatures, and how do they work?
  32. 32. Blockchain technology and cyberattacks.
  33. 33. Bitcoin script - what it is, and what you should know about it.
  34. 34. What is zkEVM, and what are its basic features?
  35. 35. Do confidential transactions on blockchain exist? What is a Confidential Transaction?
  36. 36. Algorithmic stablecoins - everything you should know about them.
  37. 37. Polygon Zk Rollups ZKP - what should you know about it?
  38. 38. What is Web3 Infura?
  39. 39. Mantle - Ethereum L2 scalability - how does it work?
  40. 40. What is the NEAR Rainbow Bridge?
  41. 41. Liquid Staking Ethereum and LSD tokens. What do you need to know about it?
  42. 42. Top 10 blockchain oracles. How do they work? How do they differ?
  43. 43. What are Web3.js and Ether.js? What are the main differences between them?
  44. 44. What is StarkWare, and recursive validity proofs
  45. 45. Quant Network: scalability of the future
  46. 46. Polygon zkEVM - everything you need to know
  47. 47. What is Optimism (OP), and how do its roll-ups work?
  48. 48. What are RPC nodes, and how do they work?
  49. 49. SEI Network: everything you need to know about the Tier 1 solution for DeFi
  50. 50. Types of Proof-of-Stake Consensus Mechanisms: DPoS, LPoS and BPoS
  51. 51. Bedrock: the epileptic curve that ensures security!
  52. 52. What is Tendermint, and how does it work?
  53. 53. Pantos: how to solve the problem of token transfer between blockchains?
  54. 54. What is asymmetric encryption?
  55. 55. Base-58 Function in Cryptocurrencies
  56. 56. What Is the Nostr Protocol and How Does It Work?
  57. 57. What Is the XDAI Bridge and How Does It Work?
  58. 58. Solidity vs. Rust: What Are the Differences Between These Programming Languages?
  59. 59. What Is a Real-Time Operating System (RTOS)?
  60. 60. What Is the Ethereum Rinkeby Testnet and How Does It Work?
  61. 61. What Is Probabilistic Encryption?
  62. 62. What is a Pinata in Web 3? We explain!
  63. 63. What Is EIP-4337? Will Ethereum Account Abstraction Change Web3 Forever?
  64. 64. What are smart contract audits? Which companies are involved?
  65. 65. How does the AirGapped wallet work?
  66. 66. What is proto-danksharding (EIP-4844) on Ethereum?
  67. 67. What is decentralised storage and how does it work?
  68. 68. How to Recover Cryptocurrencies Sent to the Wrong Address or Network: A Practical Guide
  69. 69. MPC Wallet and Multilateral Computing: Innovative Technology for Privacy and Security
  70. 70. Threshold signature in cryptography: an advanced signing technique!
  71. 71. Vanity address in cryptocurrencies: what is it and what are its characteristics?
  72. 72. Reentrancy Attack on smart contracts: a threat to blockchain security!
  73. 73. Slither: a static analyser for smart contracts!
  74. 74. Sandwich Attack at DeFi: explanation and risks!
  75. 75. Blockchain RPC for Web3: A key technology in the world of decentralized finance!
  76. 76. Re-staking: the benefits of re-posting in staking!
  77. 77. Base: Evolving cryptocurrency transactions with a tier-2 solution from Coinbase
  78. 78. IPFS: A new era of decentralized data storage
  79. 79. Typical vulnerabilities and bridge security in blockchain technology
  80. 80. JumpNet - Ethereum's new sidechain
Lesson 76 of 80
In Progress

76. Re-staking: the benefits of re-posting in staking!

Staking, or participating in the verification and creation of blocks on the blockchain network by freezing one’s funds, has become an important aspect of the cryptocurrency ecosystem. However, beyond the simple act of granting tokens in exchange for network support, more and more advanced practices are emerging, such as re-staking. 

In this article, we’ll take a closer look at what re-staking does, how it works, and what benefits it brings to investors.

What is Re-staking?

Re-staking is a process in which an investor who already participates in staking chooses to redirect their rewards (i.e., staking tokens) back into the same staking process, instead of cashing them out and realizing the profits. In short, instead of reaping the rewards, the investor chooses to reinvest them to increase their share of the staking.

To delve into the process of re-staking, let’s use the example of Ethereum. In the case of ETH, re-staking involves betting on the same ETH on Ethereum and other platforms. Re-staking tokens enables users to maximize their staking tokens (stETH, frETH, rETH) and ETH itself. In practice, this is because these assets can interact with other ETH applications and gain additional rewards, rather than just profiting from staking ETH. Interestingly, protocols that enable ETH re-staking simultaneously secure many other networks using the capital of the staked ETH.

In a financial context, this new functionality allows us to reinvest the rewards resulting from participating in ETH staking or holding liquid ETH. This process generates compound interest on our initial investment, leading to an increase in total returns over the long run. For example, if an investor receives a 6% annual return on ETH from participating in staking or a 5.5% return on ETH from depositing in an LSD protocol, automatic reinvestment of rewards can generate an additional 2-4% interest per year.

Although re-staking can yield more favorable returns compared to traditional staking, there are risks associated with this method that require attention, such as market volatility and potential price fluctuations. This risk directly affects investors, as they take long positions every time they reinvest in any asset. Therefore, it is crucial to conduct a thorough analysis of market trends and short- and medium-term price behavior.

How does Re-staking work in practice?

The re-staking process is usually simple and automated. After earning rewards from the staking process, the investor has the option to automatically redirect those rewards back to the staking process, instead of transferring them to a portfolio or exchange. This way, instead of taking profits out, the investor increases their stakes, enhancing the potential to earn more rewards in the future.

Advantages of re-staking

First and foremost, increasing profit. Re-staking allows investors to boost their capital by reinvesting the rewards they earn. This enables profits to grow over time.

Impact on the network. Re-staking delegation helps increase investor participation in the verification and maintenance process of the blockchain network, contributing to its security and efficiency.

Moreover, for those who prefer passive investment strategies, re-staking provides an attractive option. Investors can maintain their involvement in the cryptocurrency ecosystem while benefiting from stable returns.

Optimizing passive income. Re-staking allows investors to optimize their passive income by focusing on the long-term value growth of their staking commitment.


Re-staking is an advanced strategy that enables investors to maximize their profits and impact on the blockchain network. By automatically reinvesting rewards, participants in staking can increase their exposure to the cryptocurrency ecosystem while reaping the benefits of increasing returns.

However, as with any investment, it is important to understand both the benefits and potential risks of re-staking before making an investment decision and reinvesting your funds.

Complete today’s lesson!

  1. Liquid Staking Ethereum and LSD tokens.
  2. What is the Ethereum Name Service?