Key Takeaways
- Restaking allows you to earn additional yield by securing multiple networks with the same staked ETH
- EigenLayer is the dominant restaking protocol with over $15B in TVL
- Restaking introduces new slashing risks - your ETH can be slashed by multiple protocols
- Liquid restaking tokens (LRTs) like eETH and ezETH provide liquidity while restaking
What Is Restaking?
Restaking is the practice of using already-staked ETH to provide security for additional protocols and services. Instead of your staked ETH only securing Ethereum, it simultaneously secures other networks, earning you extra yield in the process.
Think of it like this: if you stake 32 ETH as an Ethereum validator, that ETH sits there securing one network. With restaking, you can "re-use" that security to also protect oracles, bridges, data availability layers, and other services - without needing additional capital.
EigenLayer Stats (January 2026)
Total Value Locked: ~$15 billion
Actively Validated Services (AVS): 15+ live
Supported Assets: Native ETH, stETH, rETH, cbETH, and more
Additional APY: Variable (depends on AVS selected)
How EigenLayer Works
EigenLayer is a middleware protocol built on Ethereum that enables restaking. It creates a marketplace where:
- Restakers deposit staked ETH or liquid staking tokens to earn extra yield
- Operators run infrastructure to validate services using pooled restaked assets
- AVS (Actively Validated Services) are protocols that pay for security from restakers
The Core Concept
Ethereum validators have already committed capital (32 ETH) and are subject to slashing if they misbehave. EigenLayer allows these validators to "extend" their slashing conditions to other services. In exchange for this additional risk, restakers receive rewards from the AVSs they help secure.
What Are AVS (Actively Validated Services)?
AVS are protocols that need decentralized trust and validation but don't want to bootstrap their own validator set. Examples include:
- EigenDA: Data availability layer for rollups
- Oracles: Price feeds and external data
- Bridges: Cross-chain communication
- Keeper networks: Automated on-chain tasks
- Sequencers: Transaction ordering for L2s
Ways to Restake
There are several paths to restaking, each with different requirements and tradeoffs.
1. Native Restaking (Solo Stakers)
If you already run an Ethereum validator with 32 ETH, you can natively restake by pointing your withdrawal credentials to EigenLayer's contracts.
Native Restaking Process
1. You must be running an Ethereum validator
2. Set withdrawal credentials to an EigenPod (EigenLayer smart contract)
3. Verify your validator ownership
4. Select which AVS to secure
5. Delegate to an operator who runs the AVS software
Pros: No liquid staking protocol fees, direct validator control
Cons: Requires 32 ETH minimum, technical complexity
2. LST Restaking (Liquid Staking Token Holders)
If you hold liquid staking tokens like stETH, rETH, or cbETH, you can deposit them into EigenLayer to restake without running a validator.
LST Restaking Process
1. Acquire LSTs (stETH, rETH, cbETH, etc.)
2. Connect wallet to EigenLayer app
3. Deposit your LSTs into EigenLayer
4. Delegate to an operator
5. Earn base staking yield + restaking rewards
Pros: Any amount, no validator operation required
Cons: Multiple layers of smart contract risk
3. Liquid Restaking (LRT Protocols)
Liquid Restaking Tokens (LRTs) add another layer: you deposit ETH or LSTs, receive a liquid token, and the protocol handles restaking for you.
| Protocol | Token | Input | Key Features |
|---|---|---|---|
| Ether.fi | eETH, weETH | ETH | Largest LRT, integrated staking + restaking |
| Renzo | ezETH | ETH, stETH | Multi-chain support, diverse AVS selection |
| Puffer | pufETH | ETH, stETH | Anti-slashing technology |
| Kelp | rsETH | LSTs | LST-focused restaking |
How to Restake with Ether.fi (eETH)
1. Visit ether.fi and connect your wallet
2. Deposit ETH (or wrap existing stETH)
3. Receive eETH (rebasing) or weETH (non-rebasing, better for DeFi)
4. Your ETH is now staked AND restaked automatically
5. Use eETH/weETH in DeFi protocols for additional yield
Restaking Rewards
Restaking rewards come from multiple sources and stack on top of regular staking yields:
- Base staking yield: ~3.5-4% APY from Ethereum staking
- AVS rewards: Payment from protocols using your security (variable)
- Points/airdrops: Many protocols distribute tokens to early restakers
- DeFi yields: Using LRTs as collateral or in liquidity pools
Current Reward Landscape
As of early 2026, most AVS rewards are still bootstrapping. Many restakers are farming "points" that convert to token airdrops. Actual cash flow yields from AVS will increase as more services launch and generate fees. Early restakers have received substantial EIGEN token allocations.
Risks of Restaking
Restaking offers higher returns but comes with significantly more risk than regular staking.
Slashing Risk
- Multiplicative slashing: Your ETH can be slashed by Ethereum AND by each AVS you secure
- AVS bugs: If an AVS has a bug in its slashing logic, you could lose funds unfairly
- Operator mistakes: Operators you delegate to could trigger slashing conditions
- Correlated slashing: If many restakers are slashed simultaneously, penalties increase
Smart Contract Risk
- EigenLayer contracts: Core protocol bugs could affect all restakers
- AVS contracts: Each AVS adds another smart contract dependency
- LRT protocols: Liquid restaking adds yet another contract layer
- Upgradability: Many contracts are upgradable, introducing governance risk
Liquidity and Depegging Risk
- LRT depegs: Liquid restaking tokens can trade below ETH value during market stress
- Withdrawal queues: High demand to exit can create lengthy withdrawal periods
- Cascading liquidations: If LRTs are used as DeFi collateral, depegs can trigger liquidations
Choosing an Operator
When you restake, you delegate to an operator who runs the actual AVS infrastructure. Operator selection matters:
- Track record: How long have they been operating? Any slashing incidents?
- Self-stake: Operators with significant self-stake are more aligned with delegators
- AVS coverage: Which services does the operator run?
- Commission: What percentage of rewards does the operator take?
- Reputation: Known entities (exchanges, staking companies) may be safer
Step-by-Step: Restake with EigenLayer
Step 1: Choose Your Path
Decide whether you want to:
- Native restake (requires 32 ETH validator)
- LST restake (deposit existing stETH/rETH)
- Use a liquid restaking protocol (easiest)
Step 2: Prepare Your Assets
For LST restaking, acquire the supported tokens (stETH, rETH, cbETH, etc.). For liquid restaking, you can use plain ETH. Ensure you have enough ETH for gas fees.
Step 3: Connect to the Protocol
Visit the official app (app.eigenlayer.xyz for direct restaking, or ether.fi/renzo/etc. for LRTs). Connect your wallet and verify you're on the correct site. Check our security guide for safe wallet practices.
Step 4: Deposit and Delegate
Deposit your ETH or LSTs. Select an operator to delegate to (research their track record first). Confirm the transactions. For LRT protocols, you'll receive a liquid token representing your position.
Step 5: Monitor Your Position
Track your restaking position through the protocol dashboard. Monitor for any slashing events or protocol updates. Consider the withdrawal timeline if you need to exit.
Tax Considerations
Restaking complicates an already complex tax situation:
- AVS rewards may be taxable income when received
- Swapping ETH for LRTs may trigger a taxable event
- Points/airdrops have uncertain tax treatment until tokens are distributed
- Keep detailed records of all deposits, rewards, and withdrawals
- Consult a crypto-specialized tax professional
Pro Tip
"Start with a small amount to understand the mechanics before committing significant capital. Restaking is still early - smart contract risk is real, and the full slashing dynamics haven't been tested under stress. The additional yield may not compensate for the added risk for conservative investors." - Blocklr Editorial Team