What is Restaking?
Restaking is an emerging DeFi primitive that allows you to reuse staked ETH (or liquid staking tokens) to provide economic security to additional protocols. Pioneered by EigenLayer, restaking enables you to earn multiple yield streams from the same capital. Base staking rewards plus additional rewards from protocols you help secure.
The core insight is that staked ETH represents valuable economic security that can be extended beyond just Ethereum consensus. By restaking, you're essentially offering your stake as collateral to secure other networks, oracles, bridges, and applications.
How EigenLayer Works
The Restaking Process- Deposit: Stake ETH natively or deposit LSTs (stETH, rETH, etc.) into EigenLayer
- Delegate: Choose an operator who runs infrastructure for Actively Validated Services (AVS)
- Secure AVS: Your stake backs the operator's commitments to various AVS protocols
- Earn Rewards: Receive staking yields + AVS rewards + potential airdrops
- Accept Risk: Additional slashing conditions apply if operators misbehave
| Term | Definition |
|---|---|
| . . . | . . . . . . |
| AVS | Actively Validated Services. Protocols secured by restaked ETH |
| Operator | Node runners who validate AVS using delegated stake |
| LRT | Liquid Restaking Tokens. Liquid wrappers for restaked positions |
| Slashing | Penalty for operator misbehavior, affecting delegators |
Yield Opportunities
Direct Restaking: Deposit ETH or LSTs into EigenLayer directly. Earn base staking + AVS rewards. Requires choosing operators carefully. Liquid Restaking: Use protocols like EtherFi (eETH), Puffer, or Renzo to receive liquid tokens representing your restaked position. These can be used in DeFi while earning restaking yields. Points Farming: Many AVS and LRT protocols offer points programs with future token airdrops. Early restakers have received substantial retroactive rewards.Deploy into restaking strategies through Fensory. Access EigenLayer and LRT protocols directly from the Crypto Wealth Super App.
Getting Started with Restaking
- Choose Your Path: Direct EigenLayer deposit or LRT protocol
- Acquire Assets: Native ETH or liquid staking tokens
- Select Operator: Research operator reputation and AVS commitments
- Deposit via Fensory: Access restaking opportunities through the Fensory Crypto Wealth Super App
- Monitor Position: Track rewards and operator performance
- Manage Risk: Diversify across operators and understand slashing conditions
Risk Considerations
Slashing Risk: Operators can be slashed for misbehavior across any AVS they validate. As a delegator, you share this risk. More AVS = more slashing exposure. Operator Risk: Your rewards depend on operator performance. Poorly run operators may miss rewards or face slashing. Smart Contract Risk: EigenLayer and LRT protocols are newer with less battle-testing than established protocols. Complexity Risk: Restaking adds layers of smart contracts and dependencies. More complexity means more potential failure points. Liquidity Risk: Some restaking positions have lock-up periods or limited liquidity for withdrawals. Restaking is experimental and involves significant risk including slashing, smart contract failures, and operator misbehavior. AVS rewards are not guaranteed and vary by protocol. Only restake what you can afford to lose.Frequently Asked Questions
Is restaking safe?Restaking is newer than traditional staking and carries additional risks (slashing, operator risk, smart contract complexity). Use established protocols and diversify.
What are LRTs?Liquid Restaking Tokens (like eETH) represent restaked positions and can be used in DeFi. They provide liquidity but add smart contract dependencies.
How much can I earn?Base staking (~4%) plus AVS rewards (variable, often 2-10%+). Points programs may provide additional value through future airdrops. Total yields of 6-15%+ are possible depending on AVS selection and market conditions.
What's the difference between native restaking and LST restaking?Native restaking uses ETH directly with validators you control or delegate to. LST restaking uses liquid staking tokens (stETH, rETH) which are simpler but add the LST protocol's smart contract layer.
How do I choose operators?Look for operators with strong track records, transparent AVS selection, and reasonable commission rates. Diversify across multiple operators to reduce single-operator slashing risk. Major operators include P2P, Figment, and Blockdaemon.
What happens if an operator gets slashed?Delegators share in slashing penalties proportional to their delegation. Different AVS have different slashing conditions. Review operator AVS commitments and understand potential slashing scenarios.
Start Restaking Your ETH
Ready to earn additional yields on your staked ETH? Deploy into restaking strategies through the Fensory Crypto Wealth Super App. Access EigenLayer and LRT protocols, monitor operator performance, and track your restaking returns from one dashboard.