# What is Restaking? EigenLayer Explained for DeFi Users

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**Publisher:** Decentralized Finance Publication
**Difficulty:** Intermediate · **Read time:** 11 min read

## Summary

Restaking allows Ethereum stakers to opt into securing additional protocols (called AVS — Actively Validated Services) via EigenLayer, earning extra rewards on top of base ETH staking yield. Liquid restaking protocols (EtherFi, Renzo, Kelp) issue tokens like ezETH and rsETH so users can restake without running validators. Restaking adds incremental slashing risk beyond standard ETH staking.

## The restaking concept

Ethereum's proof-of-stake secures the Ethereum blockchain with ~30 million ETH staked by validators. EigenLayer asks: can that same staked ETH also secure other decentralised services — oracles, data availability layers, bridges — without requiring those services to bootstrap their own validator sets?

Restakers deposit stETH, rETH, or native ETH into EigenLayer smart contracts and opt into one or more AVS protocols. In return, AVS protocols pay restakers additional rewards. The catch: restakers accept additional slashing conditions imposed by each AVS — misbehaviour on an AVS can result in loss of staked ETH beyond standard Ethereum slashing.

## AVS — what restakers actually secure

EigenDA: Data availability layer for rollups (EigenLayer's own AVS)

Oracle networks: Decentralised price feeds secured by restaked ETH

Bridges and cross-chain messaging protocols

Rollup sequencer decentralisation services

Coprocessors: Off-chain computation with on-chain verification

## Liquid restaking tokens (LRTs)

Most users restake via liquid restaking protocols rather than directly on EigenLayer. EtherFi issues eETH/ezETH, Renzo issues ezETH, Kelp issues rsETH — tokens representing restaked positions that remain composable in DeFi lending and yield strategies.

LRTs became a major DeFi narrative in 2024–2025, driving billions in TVL. The KelpDAO exploit in April 2026 ($292M) highlighted composability risks when restaking tokens are used as collateral across multiple protocols simultaneously.

## EigenLayer vs Lido — different jobs

Lido provides liquid staking — converting ETH to stETH for base staking yield. EigenLayer adds a layer on top — restaking already-staked ETH to secure AVS services. Many users hold ezETH (EtherFi) which combines both: liquid staking + restaking in one token.
## FAQ

**Q: What is restaking in simple terms?**

Restaking means using already-staked ETH to secure additional decentralised protocols beyond Ethereum itself, earning extra rewards in exchange for accepting additional slashing risk.

**Q: What is EigenLayer?**

EigenLayer is the restaking protocol on Ethereum that allows stakers and liquid staking token holders to opt into securing AVS (Actively Validated Services) and earn additional rewards.

**Q: What are liquid restaking tokens?**

LRTs like ezETH (EtherFi), rsETH (Kelp), and pufETH (Puffer) represent restaked positions as tradeable tokens, allowing users to earn restaking yield while keeping tokens composable in DeFi.

**Q: Is restaking safe?**

Restaking adds incremental slashing risk beyond standard ETH staking. Risks include AVS slashing events, smart contract bugs, and correlated failures across multiple restaking-dependent protocols.

**Q: EigenLayer vs Lido?**

Lido provides base liquid staking (ETH → stETH). EigenLayer adds restaking on top of staked ETH. They are complementary — many users hold LRTs that combine both layers.

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