Skip to main content
← DeFi glossary

Glossary · E

EigenLayer

The leading Ethereum restaking protocol. Stakers and LST holders opt in to secure Actively Validated Services (AVSs) by granting operators additional slashing conditions on already-staked ETH. EigenLayer popularised shared security and liquid restaking (LRTs) in 2024–2025. Rewards can rise, but so can slashing and smart-contract risk versus solo staking. Also searched as: Eigen Layer, Ethereum restaking protocol.

Last updated

How EigenLayer works in practice

EigenLayer introduced restaking: letting staked ETH be opted in to secure additional services, so new networks can rent Ethereum's economic security instead of bootstrapping their own validator set.

Worked example

A staker opts their position in to secure an oracle network and a data-availability layer. They earn fees from both, and accept both sets of slashing conditions on top of Ethereum's.

Figures are illustrative and chosen to be checkable, not live market data.

The mistake that costs people money

Correlated slashing is the systemic concern. Capital securing many services at once means one widespread bug or one large operator's mistake can cause losses across all of them simultaneously.

EigenLayer: common questions

What is EigenLayer?
The leading Ethereum restaking protocol. Stakers and LST holders opt in to secure Actively Validated Services (AVSs) by granting operators additional slashing conditions on already-staked ETH. EigenLayer popularised shared security and liquid restaking (LRTs) in 2024–2025. Rewards can rise, but so can slashing and smart-contract risk versus solo staking. Also searched as: Eigen Layer, Ethereum restaking protocol.
How does EigenLayer work in practice?
EigenLayer introduced restaking: letting staked ETH be opted in to secure additional services, so new networks can rent Ethereum's economic security instead of bootstrapping their own validator set.
Can you give an example of EigenLayer?
A staker opts their position in to secure an oracle network and a data-availability layer. They earn fees from both, and accept both sets of slashing conditions on top of Ethereum's.
What do people get wrong about EigenLayer?
Correlated slashing is the systemic concern. Capital securing many services at once means one widespread bug or one large operator's mistake can cause losses across all of them simultaneously.
Where can I learn more about EigenLayer?
Our full guide, What Is Restaking / EigenLayer?, covers EigenLayer in depth with worked scenarios and the risks involved. This glossary entry is the short definition.

Related terms (E)