Crypto Rehypothecation: The High-Risk, High-Reward Strategy That Can Pay Off Big

This story was originally published on HackerNoon at: https://hackernoon.com/crypto-rehypothecation-the-high-risk-high-reward-strategy-that-can-pay-off-big.

Rehypothecated assets in crypto imply that the same cryptocurrency is reused in multiple places, usually to earn extra rewards. Let's discover how exactly.

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Rehypothecation is a way to reuse assets to secure multiple networks at once. Restaking and Liquid Staking are ways to use staked assets to earn extra rewards. Wrapped tokens allow them to be traded or used in decentralized finance (DeFi) applications.