New feature boosts earning opportunities, excludes U.S. users due to restrictions.
Kraken, a well-known cryptocurrency exchange, has introduced a new feature that allows users to restake their staked Ethereum using the EigenLayer protocol. This development is designed to enhance accessibility and provide additional earning opportunities for investors.
Restaking is a process where users can earn extra rewards by staking their already staked ETH. This means that instead of unstaking their assets from the original blockchain, users can provide security to decentralized applications (dApps) and earn additional incentives. The concept is gaining traction, with the total value locked in liquid restaking tokens reaching $11 billion.
Kraken's new feature leverages the EigenLayer protocol, which facilitates the restaking process. By using this protocol, Kraken aims to make restaking more accessible to a broader audience. The exchange's subsidiary, Staked, will act as the validator, ensuring the security and efficiency of the process.
It's important to note that this restaking feature is not available to U.S. customers due to geographic restrictions. This limitation is a significant consideration for users based in the United States who are interested in exploring restaking options.
The introduction of restaking by Kraken is part of a broader trend in the cryptocurrency market. The total value locked in liquid restaking tokens has surged by over 3000% this year, indicating a growing interest and confidence in this financial strategy. By offering this feature, Kraken is positioning itself as a leader in providing innovative yield-bearing opportunities for its users.
