Lido, an Ethereum staking protocol, has partnered with Mellow Finance, a liquid restaking protocol, to enable holders of stETH, the platform's native liquid staking token, to earn yields from restaking.

Users can deposit stETH into vaults on Mellow Finance to be deployed across different actively validated services (AVSs) to earn yields. Moreover, the protocol will allow users also to create their vaults and distribute deposits according to their risk parameters and investment theses.

Analyst QuickTake: Lido has been actively ramping up its involvement in the Ethereum restaking space in response to the rapid growth of EigenLayer , which launched its services on the Ethereum mainnet in April. Lido recently established The Lido Alliance , a consortium of partner companies and protocols, and unveiled a multi-pronged strategy named " reGOOSE " to secure stETH's utility in the DeFi space and address the risks posed to it by restaking. Incidentally, along with this partnership, Lido also led a USD 5.8 million seed funding round in Symbiotic, an Ethereum restaking infrastructure provider that aims to compete with EigenLayer via Cypherfund, an investment firm backed by its co-founders.