Restaking lets you take ETH that is already staked (securing Ethereum) and simultaneously pledge it as security for additional protocols or services (oracle networks, bridges, data availability layers, new rollups). You earn extra yield on top of your base Ethereum staking rewards. EigenLayer pioneered this concept, amassing over $15B in restaked assets by mid-2024.
What Is Restaking?
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The short version
Normally, your staked ETH secures only Ethereum and earns one layer of rewards. Restaking says: "While your ETH is securing Ethereum, it can also secure other things at the same time." You opt in to additional responsibilities (validating an oracle, securing a bridge) and earn additional rewards for doing so. Your same ETH does double or triple duty. The risk: if you mess up on any of those extra duties, your restaked ETH can be slashed by multiple protocols, not just Ethereum.
How It Works
EigenLayer architecture: (1) Stakers deposit ETH (or LSTs like stETH) into EigenLayer contracts, opting into specific "Actively Validated Services" (AVSs). (2) AVSs are protocols that need economic security: oracle networks, bridges, DA layers, keeper networks, sequencers. (3) Operators run the validation software for chosen AVSs. If they behave correctly: earn rewards from the AVS (paid in the AVS token or ETH). If they misbehave: slashing conditions defined by the AVS can burn their restaked ETH. (4) Delegators can restake without running infra by delegating to operators (similar to liquid staking delegation). Economics: base ETH staking = ~4% APR. Adding AVS rewards might yield 6-12% total (depending on which AVSs you opt into). But each additional AVS adds slashing risk from that protocol. You are compounding reward layers but also compounding risk layers. The market for restaking grew from $0 to $15B+ TVL in under a year (2023-2024), indicating massive demand for "yield on yield" among stakers.
Restaking stETH via EigenLayer for extra yield
You hold 32 stETH (already earning ~4% from Ethereum staking via Lido). You deposit 32 stETH into EigenLayer. You opt into 3 AVSs: an oracle network (2% additional APR), a DA layer (1.5% additional APR), and a bridge security module (1% additional APR). Total projected APR: 4% (base) + 2% + 1.5% + 1% = 8.5% on your 32 ETH. Annual earnings: ~2.72 ETH ($8,160 at $3,000/ETH) vs. 1.28 ETH ($3,840) from staking alone. Additional risk: if the oracle AVS operator misbehaves, a portion of your stETH can be slashed per the oracle's slashing conditions. If all three AVSs slash simultaneously (extreme scenario), you could lose a significant portion of your restaked ETH. The extra 4.5% yield compensates you for carrying this additional risk.
What People Get Wrong
Restaking is risk-free extra yield
Each AVS adds an independent slashing condition. If the operator running your delegated AVS software makes an error or acts maliciously, your restaked ETH gets slashed by that AVS, independently of Ethereum. More AVSs = more potential failure points. The yield is compensation for real additional risk.
Restaking makes Ethereum less secure
Restaking extends Ethereum's security to other protocols without removing it from Ethereum. Your ETH still secures Ethereum. The risk is that slashing events on AVSs could reduce the total ETH securing Ethereum (if slashed ETH is burned). This is a systemic risk the community monitors but has not materialized at scale.
You need 32 ETH to restake
Liquid restaking protocols (EtherFi, Renzo, Kelp, Puffer) accept any amount of ETH or LSTs and issue liquid restaking tokens (LRTs) in return. You can restake 0.1 ETH. The 32 ETH minimum applies only to solo validators, not to restaking through liquid protocols.
Keep Reading
Sources & Further Reading
- EigenLayer Docs
Official documentation for the EigenLayer restaking protocol
- EtherFi
Liquid restaking protocol issuing eETH
- Restaking Dashboard (DefiLlama)
Track TVL across all restaking protocols
Questions People Also Ask
- What is EigenLayer?
- The dominant restaking protocol on Ethereum, launched by Sreeram Kannan. It lets staked ETH (native or LSTs) secure additional services (AVSs) beyond just Ethereum consensus. Over $15B in TVL as of mid-2024. It introduces the concept of "programmable trust" where new protocols can bootstrap security from Ethereum's existing staker base.
- What are Liquid Restaking Tokens (LRTs)?
- LRTs (like eETH from EtherFi, ezETH from Renzo) represent restaked positions. They work like LSTs for restaking: you deposit ETH, receive an LRT that accrues staking + restaking rewards, and can trade or use it in DeFi. They add another layer of smart contract risk on top of LST risk on top of restaking risk.
- Is restaking a bubble?
- The growth has been extremely rapid ($0 to $15B in months), driven partly by anticipated airdrops/points programs rather than realized AVS revenue. Whether the yield from actual AVS demand will justify the TVL at maturity is an open question. If AVS revenue disappoints relative to the capital allocated, some restaked capital will likely unwind.