diff --git a/docs/learn/learn-comparisons-restaking.md b/docs/learn/learn-comparisons-restaking.md new file mode 100644 index 000000000000..e4bcf13872d3 --- /dev/null +++ b/docs/learn/learn-comparisons-restaking.md @@ -0,0 +1,70 @@ +--- +id: learn-comparisons-restaking +title: Restaking vs. Polkadot Economic Security +sidebar_label: Restaking +description: Comparing restaking to Polkadot's native economic security. +keywords: [ethereum, Ethereum, eigenlayer] +slug: ../learn-comparisons-restaking +--- + +This comparison aims to compare the notion of **restaking**, an up-and-coming way to secure +decentralized layers built on top of Ethereum, to Polkadot's native economic security. EigenLayer +will be the primary subject of comparison to Polkadot, as its goals are similar. + +## A Quick Summary: Restaking + +Restaking's primary focus access to provide **pooled security**, where something like EigenLayer +will provide cryptoeconomic security for whoever builds on them. Through a series of derived assets, +backed by pools of staked ETH, different layers and dApps built using EigenLayer will have the +advantage of economic security without having to create and manage their own token. Effectively, +this solves the **bootstrap problem** that most new protocols face in the blockchain space. + +:::info What is the bootstrap problem? + +The bootstrap problem refers to the initial challenge most new protocols face: economic security. +When a new decentralized protocol is created, it often requires some unit of exchange (usually in +the form of a token) to deter adversaries from attempting to attack, as the cost of attacking the +protocol outweighs any potential gain. + +Creating and managing a new token comes with a set of challenges - both technical and legal, which +is why having an available pool of economic security is appealing to new protocols. + +::: + +```mermaid +flowchart LR +a["Stake(ETH)"] --> b["Recieve(sETH)"] --> c["Restake(sETH)"] --> d["Service X"] +``` + +Where staking ETH secures Ethereum, restaking using a protocol like EigenLayer will allow a user to +allocate some amount of economic security to some Service X, which could be a bridge, layer two +system, or other (decentralized) layer that requires economic security. + +### Restaking vs. Liquid Staking + +Liquid Staking preserve liquidity through an LP token (liquidity provider). This LP token is +exchangeable one-to-one to the native token, but is usable for DeFi purposes (usually in a +decentralized exchange, or DEX). + +The conversion for liquid staking can only occur once. For example,a user may stake 10 DOT natively, +and the liquid staking protocol returns 10 lpDOT in return. The 10 lpDOT can be used while my 10 DOT +is staked. + +Restaking can occur twice - firstly with staked ETH, for example, then secondly to whichever service +it chooses to secure. + +## A Quick Summary: Polkadot Economic Security (NPoS) + +Polkadot's economic security is native to its protocol. Through NPoS, a series of nominators and +validators ensure the honest allocation of staked tokens and smooth propagation of any network state +transitions. This includes the security and availability of any parachains that have a registered +slot on Polkadot. + +```mermaid +flowchart LR +a["Stake(DOT)"] --> b["Secure X Services"] +``` + +Polkadot also has a series of secondary availability and validity checks on candidate blocks before +going through the finality process with [GRANDPA](../general/glossary.md#grandpa-finality-gadget). +These checks contribute in ensuring that validators are behaving, and are slashed accordingly. diff --git a/polkadot-wiki/sidebars.js b/polkadot-wiki/sidebars.js index c751709de016..a9ba0565d858 100644 --- a/polkadot-wiki/sidebars.js +++ b/polkadot-wiki/sidebars.js @@ -344,7 +344,8 @@ module.exports = { 'learn/learn-comparisons-cosmos', 'learn/learn-comparisons-avalanche', 'learn/learn-comparisons', - 'learn/learn-comparisons-rollups' + 'learn/learn-comparisons-rollups', + 'learn/learn-comparisons-restaking' ], }, "learn/learn-video-tutorials",