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Beginners Guide

Lead · Beginners Guide

What Is Restaking? Using the Same ETH Twice for Extra Yield

The Kelp DAO vulnerability was not in the restaking mechanism itself, it was in an easily overlooked piece of infrastructure configuration. Reviewing smart contract code alone is not enough.
You stake ETH on Ethereum and earn roughly 3-4% annually, the base reward for helping secure consensus. Restaking asks a simple but consequential question: can that same locked ETH also help secure other systems at the same time, in exchange for extra yield? The answer is yes, but the price is that your capital now passes through several distinct layers of smart contracts in sequence, and a...
Beginners Guide
What Is a Sybil Attack? Why Airdrops Always Have Someone Gaming the Rules
As long as the cost of creating an identity approaches zero, any mechanism...
Beginners Guide
Funding Rate Arbitrage Can Hit 115% Annualized -- But Most Traders Lose Money on One Overlooked Detail
Funding rate arbitrage doesn't profit from price going up or down -- it...
Beginners Guide
Split Your Recovery Phrase Into Seven Pieces, Any Five Can Rebuild It -- Do You Actually Need This?
Copying a recovery phrase into three separate backups triples your leak...
"The Kelp DAO vulnerability was not in the restaking mechanism itself, it was in an easily overlooked piece of infrastructure configuration. Reviewing smart contract code alone is not enough."
— Crypto Bible
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