What is EigenLayer?
EigenLayer is a groundbreaking restaking protocol built on Ethereum that allows users to extend the security of their staked ETH to secure additional protocols, earning extra yield in the process. By enabling ETH stakers to "restake" their assets, EigenLayer creates a shared security marketplace where new protocols can bootstrap security without building their own validator sets.
With over $15 billion in total value locked, EigenLayer has become one of the largest protocols in DeFi and represents a fundamental shift in how blockchain security is provisioned. The protocol supports native ETH staking as well as various liquid staking tokens (LSTs) like stETH, rETH, cbETH, and others, making restaking accessible to a broad user base.
EigenLayer's vision is to reduce the fragmented security landscape in crypto, where each new protocol historically needed to attract its own set of validators. Instead, Ethereum's massive validator set can now secure dozens of additional services simultaneously, creating efficiencies for both stakers (more yield) and protocols (cheaper security).
Key Metrics
| Metric | Value |
|---|---|
| . . . . | . . . - |
| Total Value Locked | $15B+ |
| Chain | Ethereum |
| Supported LSTs | stETH, rETH, cbETH, and more |
| Active AVSs | 10+ launched, 50+ building |
| Operators | 200+ registered |
| Audit Status | Multiple audits (Sigma Prime, others) |
How EigenLayer Works
EigenLayer introduces "restaking," a mechanism that allows staked ETH to secure multiple protocols simultaneously. Here's how the system operates:
Native Restaking: Ethereum validators can point their withdrawal credentials to EigenLayer contracts, enabling their 32 ETH stake to also secure EigenLayer AVSs. This requires running a validator node. Liquid Restaking: Users holding LSTs (stETH, rETH, cbETH) can deposit them into EigenLayer to earn additional yields. No validator operation required. Simply deposit and delegate. Actively Validated Services (AVSs): These are protocols that use EigenLayer's shared security. AVSs might be oracle networks, data availability layers, bridges, or any service needing decentralized validation. AVSs pay restakers for security. Operators: Professional node operators run AVS software and accept delegations from restakers. When you delegate to an operator, they validate AVSs on your behalf, and you share in the rewards. Slashing: Restaked ETH can be slashed if operators misbehave on any AVS they've opted into. This creates real economic security for AVSs but introduces additional risk for restakers.How to Use EigenLayer
Step 1: Choose Restaking MethodDecide between native restaking (for validators) or liquid restaking (for LST holders). Most users will choose liquid restaking.
Step 2: Acquire Eligible AssetsObtain supported LSTs (stETH, rETH, cbETH, sfrxETH, etc.) or native ETH if running a validator.
Step 3: Deposit into EigenLayerVisit app.eigenlayer.xyz and deposit your LSTs or set up native restaking for your validator.
Step 4: Select an OperatorResearch operators based on their track record, AVS opt-ins, and commission rates. Delegate your restaked assets to chosen operator(s).
Step 5: Monitor with FensoryUse Fensory to track your restaking positions, compare operator performance, and stay updated on new AVS opportunities.
Yield Opportunities
1. LST Restaking (Base Staking + Restaking Rewards)
- Base Yield: 3-4% from underlying staking (stETH, rETH)
- Restaking Rewards: Additional yield from AVSs
- Total Potential: 5-10%+ APY depending on AVS rewards
- Supported tokens: stETH, rETH, cbETH, sfrxETH, and more
2. Native Restaking (For Validators)
- Enhanced Yields: Validators earn base ETH staking + AVS rewards
- Direct Participation: No intermediary LST protocols
- Higher Complexity: Requires validator operation
3. Liquid Restaking Tokens (LRTs)
- Convenience: Protocols like EtherFi (eETH), Renzo (ezETH) wrap EigenLayer positions
- DeFi Composability: Use LRTs across DeFi while restaking
- Simplified UX: No manual operator selection
- Fensory aggregates LRT opportunities for easy comparison
4. Points and Airdrops
- EigenLayer Points: Earned for restaking activity
- AVS Points: Individual AVSs may distribute their own points
- LRT Protocol Points: Additional points from LRT protocols
Risk Considerations
EigenLayer introduces new risk categories beyond standard staking:
- Slashing Risk: Restaked assets can be slashed for AVS violations
- Operator Risk: Delegating to unreliable operators increases slashing exposure
- Smart Contract Risk: Complex protocol with multiple contract interactions
- AVS Risk: Individual AVSs may have bugs or vulnerabilities
- Concentration Risk: Many assets delegated to few operators
- Withdrawal Delays: 7-day withdrawal period for restaked assets
Frequently Asked Questions
What's the difference between staking and restaking?Staking secures Ethereum consensus. Restaking extends that same staked ETH to also secure additional protocols (AVSs), earning additional rewards but introducing new slashing risks.
Can I lose my restaked ETH?Yes, if the operator you delegate to misbehaves on an AVS, your restaked ETH can be slashed. Choose operators carefully and consider diversifying across multiple operators.
Do I need to run a node?No. Liquid restaking allows you to deposit LSTs and delegate to professional operators who run nodes on your behalf.
What are LRTs?Liquid Restaking Tokens (LRTs) like eETH and ezETH wrap EigenLayer positions into tradeable tokens, providing liquidity and DeFi composability for restaked assets.
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Ready to explore restaking with EigenLayer? Fensory is the crypto wealth super app that helps you find and compare the best DeFi opportunities.[Get Started with Fensory →](https://www.fensory.com)