What is Restaking?
Restaking allows Ethereum validators to opt in to providing cryptoeconomic security to multiple protocols simultaneously in return for earning additional rewards.
For example, consider a decentralized blockchain bridge that facilitates asset transfers between two networks. A common way to design decentralized bridges is to have a group of operators manage the bridge and verify transactions. However, to avoid corruption, these operators typically must lock up their tokens as collateral to ensure they act honestly.
The problem is that a new bridge may struggle to attract enough capital to make attacks prohibitively expensive. Even mature bridges might only have $100 million worth of assets staked as security. If an attacker can gather more than that amount, they could potentially take over the bridge and approve fraudulent transactions.
At its core, EigenLayer creates a marketplace between:
- Restakers: Users who have staked ETH or LSTs and seek additional yield.
- Projects (AVSs): Protocols that require cryptoeconomic security and are willing to offer rewards in exchange for it. These are known as Actively Validated Services, or AVSs.
If a validator participating in the bridge acts maliciously or fails to fulfill their responsibilities, a portion of their restaked ETH can be slashed. This makes attacks far more expensive, as an attacker would now need to accumulate a significant portion of Ethereum’s staked ETH rather than just surpassing the bridge’s native stake.
By leveraging restaked ETH, the bridge benefits from Ethereum’s robust security model while validators earn additional rewards for extending their security to new protocols. This creates a win-win situation: The bridge gets stronger protection, and validators increase their yield without unstaking their ETH.
To learn more about restaking and liquid restaking, visit: