Beyond Staking: The Next Generation of On-Chain Yield

The digital asset yield landscape has expanded far beyond proof-of-stake validation rewards. Restaking protocols, liquid staking derivatives (LSDs), real-world asset (RWA) tokenisation, and structured DeFi products are creating a multi-layered yield stack that institutional allocators must understand and evaluate.

Restaking — pioneered by protocols like EigenLayer — allows staked assets to simultaneously secure multiple networks, generating compounded yield. For allocators, restaking introduces a new dimension of risk-return analysis: the slashing conditions of each actively validated service (AVS) must be modelled alongside the base staking yield.

Meanwhile, the tokenisation of real-world assets has moved from proof-of-concept to production. Tokenised US Treasuries alone represent over $15B in onchain value, offering institutional allocators a familiar yield instrument with the settlement efficiency and composability of blockchain infrastructure.

The key challenge for allocators is constructing a coherent framework for evaluating these diverse yield sources. Smart contract risk, governance risk, liquidity risk, and regulatory risk each require distinct analytical approaches that traditional fixed-income frameworks were not designed to address.

Key takeaways

• Restaking introduces compounded yield but requires modelling slashing conditions across multiple AVS
• Tokenised US Treasuries exceed $15B, bridging traditional fixed income with onchain infrastructure
• Allocators need new risk frameworks that address smart contract, governance, and liquidity risks
• The yield stack is multi-layered — base staking, restaking, RWA, and structured DeFi products