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.
Restaking is not free yield — it is additional yield for additional slashing risk. Correlated slashing across multiple AVS protocols is an active research concern in the Ethereum community.
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.
Frequently asked questions
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.
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.
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.
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.
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.