♻️Restaking Cycle

The TAOHarvest Restaking Cycle represents an innovative advancement in optimizing the functionality and efficiency of staked assets through the strategic rehypothecation of ETH and TAH within the platform, as an innovative middle-layer infrastructure. This methodology permits the continued leverage of these staked assets without necessitating their withdrawal from their primary staking roles, thereby extending their utility beyond conventional network security purposes. Through restaking, participants are afforded the opportunity to accrue additional revenue by navigating the risks associated with augmented slashing conditions, while concurrently enhancing the platform's security and resilience.

Understanding the Restaking Mechanism

Restaking represents a forward-thinking concept designed to amplify the utility and effectiveness of staked assets. It achieves this by allowing the further utilization of staked ETH and TAH, thus reinforcing the TAOHarvest protocol's security while affording stakers avenues for additional rewards.

a. Fund Pooling from Users

- Liquid Staking: The initial step in the Restaking process involves contributors depositing their ETH/TAH tokens into TAOHarvest's designated Staking Pool, in exchange for liquid staking tokens (LSTs), stETH/stTAH. These LSTs embody the contributors' staked assets in a fungible and transferrable form.

- LST Depositing: Subsequently, users deposit their LSTs into a restaking pool. These LSTs underpin a data availability layer that nascent blockchain protocols can utilize to bolster their security.

b. Enhance Pooled Security

- Active Validation System (AVS): Restaking enables Ethereum stakers to secure supplementary rewards by delegating their ETH to AVS operators, who oversee the requisite infrastructure for these services. The AVS strengthens network security and provides rewards that surpass those of traditional staking avenues.

- Function of Restaking Protocols: Restaking protocols alleviate the complexities associated with establishing an AVS by introducing a shared security layer. By contributing their LSTs to a restaking protocol, users enrich a collective security fund. This fund is then leveraged to safeguard emerging blockchain protocols, allowing them to tap into pooled resources without the necessity of creating their own AVS.

- Slashing Conditions: Assets committed to a restaking protocol face two layers of slashing conditions. The initial layer, enforced by the Ethereum mainnet and overseen by the liquid staking provider, upholds the operational continuity of the Ethereum network. The subsequent layer, implemented by the TAOHarvest protocol, is designed to protect Bittensor that utilize the pooled security. This intricate system of incentives and risks ensures that stakers receive compensation for the elevated risk, as their staked ETH contributes to securing not just the Ethereum network but extended blockchain ecosystems as well.