P2P.org, a provider of noncustodial staking tools on the Ethereum blockchain, is taking steps to enhance staking rewards through a new API integration.
According to an announcement made on May 27, P2P.org has integrated an automated Restaking API that enables users to restake Ether (ETH) on decentralized staking protocols like EigenLayer.
This Restaking API seamlessly integrates with P2P.org’s existing Ethereum API, allowing intermediaries to stake ETH and subsequently restake it on EigenLayer.
P2P.org CEO Alex Esin highlighted the value that this new Restaking API brings to intermediaries, stating, “Intermediaries are constantly looking for ways to add value for their clients and differentiate their services in a competitive market. With our new Restaking API, we are providing a powerful tool that accomplishes just that.”
Ethereum staking refers to the participation in Ethereum’s transaction validation process after the network’s transition from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus protocol in 2022.
When staking on Ethereum, users deposit 32 ETH to activate validator software and earn staked ETH by holding Ether in a crypto wallet, exchange, or staking pool.
By utilizing Ethereum restaking, users have the ability to simultaneously stake their ETH on another Ethereum protocol, thus extending crypto-economic security to additional applications on the network.
EigenLayer introduced the concept of Ethereum restaking to the crypto market and launched on the Ethereum mainnet in April 2024.
P2P.org’s new Restaking API platform offers various rewards, including staking and restaking rewards, Secret Shared Validator incentives, EigenLayer future rewards, and anticipated Actively Validated Services’ airdrops. All of these rewards can be accessed through a single integration point.
While restaking presents opportunities to support diverse blockchain projects using staked Ether, there are also concerns associated with the process. One common concern is the repeated allocation of funds to similar validators, which increases both yield and risk.
In 2023, Ethereum co-founder Vitalik Buterin cautioned about the potential systemic risks that restaking protocols could expose the blockchain to.
Related: The Hong Kong SFC is considering allowing Ether staking for ETF issuers.
As P2P.org works towards optimizing staking rewards with its new Restaking API, it aims to provide users with enhanced opportunities for earning rewards and supporting the security and growth of the Ethereum network.