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Restaking and EigenLayer: Earning Extra Yield on Staked ETH

Understand the restaking revolution — how EigenLayer lets you earn additional yield on your staked ETH.

What Is Restaking?

Restaking allows staked ETH (or LSTs like stETH) to be used as security for additional protocols. EigenLayer pioneered this concept, enabling a shared security marketplace.

How EigenLayer Works

  • Deposit staked ETH or LSTs into EigenLayer
  • Opt into actively validated services (AVSs)
  • Your staked ETH secures these additional services
  • Earn restaking rewards on top of your staking yield

    • Benefits

    • Higher yields: Stack restaking rewards on top of staking yields
    • Shared security: New protocols bootstrap security without creating their own validator set
    • Capital efficiency: One stake secures multiple services

    Risks

    • Slashing: Additional slashing conditions from opted-in AVSs
    • Smart contract risk: Multiple layers of contract interaction
    • Complexity: Understanding all opted-in services and their risks

    Liquid Restaking

    Protocols like EtherFi, Renzo, and Puffer offer liquid restaking tokens that maintain DeFi composability while restaking.

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