Restaking is a cryptoeconomic innovation introduced by EigenLayer that allows Ethereum validators and liquid staking token holders to "restake" their staked ETH — pledging the same collateral to secure additional protocols (called Actively Validated Services or AVS) beyond Ethereum itself. Restaking extends Ethereum's economic security to new applications while earning stakers additional yield.
THE PROBLEM RESTAKING SOLVES
Every new decentralised protocol (data availability layers, oracle networks, cross-chain bridges, sequencers) needs its own security — typically bootstrapping a new validator set with its own token. This is expensive, slow, and creates a fragmented security landscape where each new protocol starts with minimal economic stake. EigenLayer allows these protocols to rent Ethereum's existing security instead.
HOW EIGENLAYER RESTAKING WORKS
ETH stakers or LST (liquid staking token) holders can opt into EigenLayer's smart contracts. By restaking, they pledge their collateral to secure additional AVS (Actively Validated Services) beyond Ethereum itself. In exchange, they earn AVS-specific rewards on top of regular ETH staking yields. Operators run the specialised software required by each AVS and accept delegated restake from stakers.
ACTIVELY VALIDATED SERVICES (AVS) EXAMPLES
Data availability layers (EigenDA — EigenLayer's own high-throughput data availability service). Oracle networks providing data to dApps. Bridges verifying cross-chain message authenticity. Decentralised sequencers for rollups. Shared cryptographic services (random number generation, threshold key management).
RESTAKING RISKS
Slashing amplification: A validator running multiple AVS simultaneously could face slashing from multiple sources for a single failure — potentially losing far more than their original Ethereum stake. AVS risk stacking: Each additional AVS adds smart contract and operational risk. Centralisation: Large liquid staking protocols restaking significant ETH could dominate AVS security sets.
EIGEN TOKEN
EIGEN is EigenLayer's governance and staking token, distributed via an airdrop to early restakers. It is used in a novel "universal slashable stake" model for intersubjective faults (actions that are harmful but not provable on-chain).
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