P2P.org, a validator on the Ethereum blockchain and provider of noncustodial staking tools, is enhancing staking rewards through a newly integrated API.

The company announced on May 27 that it has incorporated an automated Restaking API, enabling users to restake Ether (ETH) on decentralized staking protocols like EigenLayer.

The Restaking API, seamlessly integrated with P2P.org's existing Ethereum API, empowers intermediaries to stake and restake ETH on EigenLayer, offering added value to clients in a competitive market, according to CEO Alex Esin.

This development comes as Ethereum transitions from a proof-of-work to a proof-of-stake consensus protocol. Ethereum staking involves locking up 32 ETH to become a validator and earn rewards for holding Ether.

With Ethereum restaking, users can stake their ETH on multiple protocols simultaneously, enhancing network security and supporting additional applications. EigenLayer introduced this concept upon its Ethereum mainnet launch in April 2024.

P2P.org's Restaking API platform offers various rewards, including staking and restaking rewards, Secret Shared Validator incentives, EigenLayer future rewards, and anticipated Actively Validated Services' airdrops, accessible through a single integration point.

However, while restaking presents opportunities for diversifying blockchain projects, it also raises concerns about allocating funds to similar validators repeatedly, increasing both yield and risk. Ethereum co-founder Vitalik Buterin highlighted these concerns in 2023, warning of potential systemic risks associated with restaking protocols.