Restaking
Also known as: re-staking, EigenLayer restaking
Reusing already-staked assets to secure additional protocols for extra rewards, adding further income and tracking complexity.
Definition
Restaking lets you take an asset that is already staked (or a liquid-staking token) and commit it to secure additional services or protocols, earning extra rewards on top. Each reward stream is generally income on receipt, and any token swaps along the way may be disposals. Restaking layers risk and tax complexity, so meticulous records of each reward and any token conversion are essential.
Example
You restake your stETH via a restaking protocol to earn additional rewards; each new reward is income, recorded at its rand value on receipt.
Jurisdiction notes
- South Africa: Each restaking reward stream is generally income on receipt; token conversions in the process may be disposals.