What Is Restaking in Crypto? (And Why EigenLayer Matters)
Restaking is a new primitive in the Ethereum ecosystem that lets users re-use staked ETH to secure other networks or services beyond Ethereum. Think of it as putting your ETH to work twice once for Ethereum security and again for additional yields or protocol incentives.
One of the leading protocols pioneering this model is EigenLayer, a modular re‑staking protocol that creates a new layer of cryptoeconomic security.
How Restaking Works
When users stake ETH to help validate Ethereum (via a validator), they usually earn staking rewards. With EigenLayer, those same validators (and ETH) can “opt-in” to secure additional middleware (like oracles, bridges, data availability layers) without unstaking from Ethereum. This layered security offers benefits like:
- Extra Yield: Earn rewards from multiple protocols.
- Modularity: Projects can tap into Ethereum’s security without launching their own token.
- Security Reuse: A single stake secures multiple networks more capital-efficient.
Glossary Terms
- ValidatorA node that helps secure the blockchain by proposing and verifying new blocks. In Proof of Stake systems like Ethereum, validators are rewarded with transaction fees and block rewards.→ Validator – Mitosis Glossary
- SlashingA penalty mechanism that removes part of a validator’s staked assets for malicious or negligent behavior. In restaking, slashing can extend beyond Ethereum and apply to other protocols.→ Slashing – Mitosis Glossary
- Smart ContractCode that runs autonomously on blockchains, executing actions based on predefined logic. EigenLayer uses smart contracts to coordinate restaking opt-ins and penalty enforcement.→ Smart Contract – Mitosis Glossary
Why It Matters
Restaking is significant because it introduces a shared security model that doesn’t dilute ETH’s economic base. It enables:
- Protocol bootstrapping without a native token.
- Increased capital efficiency for ETH stakers.
- Greater decentralization for middleware and L2 services.
EigenLayer is currently leading the charge, but restaking may evolve into a broader primitive across PoS ecosystems.
Learn More (Internal Mitosis University Links)
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