Restaking

Overview

Restaking is a mechanism that allows staked ETH to be reused as security for additional protocols, amplifying yield while extending slashing risks. The term was popularized by EigenLayer, which lets validators opt their staked position into securing "actively validated services" (AVSs) beyond the Ethereum consensus layer. The same stake thus backs multiple systems at once.

How It Works

Validators who restake commit their staked ETH, usually via a liquid staking derivative, to the security of one or more AVSs. If an AVS behaves incorrectly, the restaked capital can be slashed as penalty, which gives the service real economic security. In exchange, restakers earn additional rewards from each service they secure. The stack can also be delegated to operators who run the infrastructure.

Why It Matters

Restaking creates a shared security marketplace: new protocols can bootstrap trust from Ethereum's established validator set instead of building their own. This accelerates innovation in everything from bridges and oracles to sequencing layers. The flip side is that capital is exposed to more slashing conditions, so risk compounds along with yield, and the design is still young as of 2026.

Related Concepts

Restaking builds directly on Liquid Staking and is the substrate for Actively Validated Services (AVS). It extends the security model of Validators beyond the base chain and is a defining topic of the modular blockchain stack.