Restaking Definition

Restaking within the Bloom Protocol on Bitcoin’s Layer 2 involves a dynamic process where users lock their BTC in a self-custodian vault using time-locked transactions. This innovative approach to staking BTC not only leverages the security of Bitcoin but also adapts it into a staking mechanism that allows participation in DeFi activities. By enabling BTC holders to engage directly with DeFi through staking, the Bloom Protocol facilitates a novel form of liquidity and financial activity that harnesses the underlying value of Bitcoin in a decentralized finance context. This process enriches the Bitcoin ecosystem, providing users with new avenues for earning and engagement beyond traditional transactional use.