The post Risks, opportunities, and news of Ether restaking appeared on BitcoinEthereumNews.com.

According to the latest news, the restaking of Ether (ETH) represents a “robust financial instrument” with the potential to offer significant returns to investors.  However, according to Haven1, the biggest risk associated with this practice is the lack of understanding of the asset cycle.  In other words, investors need to be aware of the number of financial loops they are adding to avoid excessive risks and optimize their investment strategies. Let’s see all the details below.  The complexity of the asset cycle in Ether restaking: all the news  As anticipated, the emerging Ether restaking protocols, which promise investors double-digit passive returns, are raising significant issues of economic sustainability and security.  Jeff Owens, co-founder and CEO of Haven1, highlighted that the biggest risk associated with the restaking of Ether (ETH) is not the technical complexity, but the lack of understanding on the part of investors. In particular, Owens emphasized the importance of understanding the risks of the asset loop in restaking protocols. The looping of assets involves traders distributing the same capital across multiple protocols.  This is possible because liquid staking offers investors a copy of the underlying Ether token, which can be further deployed in other decentralized finance (DeFi) protocols. Owens on the matter stated the following:  “I hope that people start to understand that the more you make your own assets, the greater the risk. This means that all it takes is one of those layers to extract or not to contribute to the rewards, and you can have that cascading effect that diminishes with it.” Haven1 and the liquid staking token hsETH Haven1 is a layer-1 blockchain compatible with Ethereum Virtual Machine that has recently launched its own liquid staking token, hsETH.  This robust financial instrument allows for greater capital efficiency compared to normal staking protocols, which do…

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Filed under: News - @ June 25, 2024 4:04 am