Does Solana require Restaking?

Author: Kairos Research  Source: X, @Kairos_Res Translation: Shan Ouba, Golden Finance

Jito Restating combines the best parts of EigenLayer and Symbiotic, as well as some novel improvements of their own

While Jito has long been rumored to be developing a re-staking platform, it is clear that they have put a lot of thoughtful and intentional effort into the design. The vault program, much like Symbiotic, will allow for customized delegation strategies across multiple operators, thereby diversifying operator risk, while also allowing for increased exposure to different AVS. However, a big difference here is that Jito will have an LRT module that allows others to create and operate LRT through the Jito protocol itself, rather than outsourcing LRT creation and leaking value to exogenous protocols.
This is an important difference that Jito has implemented, allowing for further vertical value capture and creating another potential revenue stream for the protocol with a small, reasonable adoption rate (pending). Another interesting difference mentioned by Jito is allowing for the creation of liquid collateral AVS tokens, which can then be efficiently used in DeFi. There are still many questions to be answered about how the restaking reward tokens will be paid out to the end users who restake, whether through native restaking or LRT, but to our knowledge this is the first example or someone has come up with the idea of ​​allowing the minting of liquid receipt tokens for AVS.  
Allowing these AVS tokens to be minted as liquid receipt tokens can help enhance the security of AVS, as well as effectively utilizing these tokens in DeFi.
This could allow for some novel re-staking strategies involving liquid receipt AVS tokens, allowing for reward compounding, and potentially helping delegation managers find optimal strategies for paying rewards to end users.
Overall, it is unclear whether many AVS will generate significant revenue in the short term, but in the medium to long term, it is likely that many AVS will emerge to meet the different needs of developers, users, and protocols alike.
The total revenue paid to re-stakers by these AVS, even if it is not several orders of magnitude larger than the native staking rate reward, may still provide higher returns than the native staking reward, which we expect will drive the development of tokens such as $rJitoSOL to achieve widespread adoption through Solana DeFi, and may even one day disrupt the canonical JitoSol, just as we expect LRT to disrupt LST in terms of production utilization on Ethereum.
Finally, as StakeNet continues to develop, it is possible that we will see the emergence of the first permissionless autonomous LRT delegation policy manager. This could potentially assess the real-time risk of individual AVS, operators, etc., and adjust LRT delegation policies accordingly.
As a result, Jito continues to position itself as the dominant protocol on Solana across the critical value points of MEV, staking/liquid staking, and now re-staking.
We look forward to continuing to monitor the specifics of AVS within Jito’s re-staking ecosystem and tracking re-staking deposits, withdrawals, and liquidity data.