Stake ETH once, earn once. That was the deal from 2020 until early 2024. Then EigenLayer went live and rewrote it: stake ETH once, earn on the base layer, then rent that same security out to other protocols and earn again. The extra reward isn't free — each new layer stacks fresh slashing conditions on top of the original. Understanding what you're actually agreeing to matters more here than it did with plain staking.
Here's the mechanic in plain terms, followed by the tradeoffs.
What restaking actually does
When you stake ETH on Ethereum, you're pledging capital that gets slashed if your validator misbehaves. That pledge is worth something to other networks too: rollups, oracles, bridges, and side chains all need a lot of honest capital watching over them. Restaking lets you promise the same ETH to those extra services in exchange for a slice of their fees. EigenLayer calls the extra services Actively Validated Services, or AVSs. Each AVS defines its own slashing conditions, so opting into one is a new commitment on top of the base Ethereum one. If it goes wrong, part of your ETH can be taken. If it goes right, you earn a bit more. For the base-layer version, the intro to liquid staking covers the starting point.
How you can participate
There are two main paths, depending on how much ETH you have and how hands-on you want to be:
- Native restaking — if you run your own validator, you point its withdrawal credentials to an EigenLayer contract. You keep control of the validator and take the AVS fees directly.
- Liquid restaking (LRTs) — you deposit stETH, rETH, or a similar receipt token into a protocol like ether.fi, Renzo, or Kelp. They hold the position on EigenLayer for you and issue a token (eETH, ezETH, rsETH) that reflects your share.
Liquid restaking tokens are how most people access this, since they don't require running a validator or picking AVSs yourself. The tradeoff is the extra middle layer: another contract, another team, another set of decisions about which AVSs to opt into. If the LRT team picks poorly, everyone holding their token feels it.
Where the extra yield comes from
An AVS is basically an infrastructure service that pays for security. Rough categories, with real examples:
| AVS type | What it does | What restakers earn |
|---|---|---|
| Data availability | Stores rollup data (e.g. EigenDA) | Fees from rollups posting data |
| Oracles | Feed price data on-chain | Subscription fees from users |
| Bridges | Move assets across chains | Bridge fees |
| Fast finality layers | Provide quick confirmations for rollups | Rollup fees |
Total restaking yield sits on top of the base 3-5% ETH staking APY. Estimates from early 2024 through 2025 put the additional layer somewhere in the 1-5% range, depending on which AVSs are running and how much capital is competing for their fees. Every one of those numbers is illustrative and shifts as the market matures. The how staking rewards work page shows how the base rate is set; AVS rewards follow a similar market logic.
The slashing story gets longer
Base Ethereum staking has a fairly narrow set of slashing conditions — mostly around double-signing and going offline. Restaking adds a new one for each AVS you opt into. If an AVS's slashing rule is vague, poorly designed, or too aggressive, honest operators can still lose ETH from a bug in the AVS logic itself. This is the reason EigenLayer's team emphasizes that AVS opt-in should be deliberate, not automatic. Liquid restaking token holders are trusting the LRT team to make those choices well. When people ask what the difference is between liquid staking and restaking risk, this is most of the answer: an extra stack of slashing conditions written by teams other than the Ethereum core developers. See the staking risks list for how these slot into the wider picture.
A quick reality check on the numbers
During EigenLayer's early points campaign, headline restaking APYs looked huge — but a lot of that value was in speculative points and airdrops, not real ongoing fees. As AVSs launched and fees became real, the numbers settled into a more grounded range. A rough current picture, purely illustrative:
| Layer | Illustrative APY | Where it comes from |
|---|---|---|
| Base ETH staking | ~3-4% | Ethereum issuance + tips |
| EigenLayer restaking layer | ~1-3% | AVS fees |
| Combined | ~4-7% | Both together |
Whether that extra 1-3% is worth the extra risk depends on the specific AVSs, the LRT team's judgment, and your tolerance for taking on complexity. Nothing here is a promise, and every APY figure moves.
Where EigenLayer restaking fits in your staking plan
Restaking is liquid staking's more ambitious cousin — same base bet, more layered rewards, more layered risks. It's the right shape for people who already understand base staking and want a slightly more active position. It's the wrong shape for people who want the simplest possible "put ETH in, earn ETH" setup. There's no rush; the base rate is still there. This is educational only; every protocol, every AVS, and every market week is different.