Restaking extends the security role of staked ETH beyond Ethereum’s validator set to additional protocols called actively validated services (AVSes). Instead of your staked ETH only securing Ethereum, restaking puts it to work simultaneously securing external protocols: oracle networks, data availability layers, or bridges. EigenLayer is the primary restaking protocol on Ethereum as of 2026. Stakers earn additional yield from AVSes and take on additional slashing risk if an AVS they are securing misbehaves.
How restaking works
EigenLayer lets you deposit staked ETH or liquid staking tokens (stETH, rETH) into its restaking contracts. AVSes opt into EigenLayer’s security model, agreeing that if they behave maliciously, their restakers can be slashed. This creates economic security for the AVS without requiring it to bootstrap its own validator set. Restakers earn AVS-specific rewards in exchange for accepting this additional slashing exposure.
Liquid restaking tokens (LRTs) like eETH from Ether.fi, ezETH from Renzo, and rsETH from KelpDAO wrap restaked ETH positions into a single tradeable token, similar to how stETH represents staked ETH. LRTs can be used in DeFi as collateral while the underlying ETH is restaked, adding another yield layer on top.
What this means for traders
The yield stack has multiple layers, and each layer adds risk. Native ETH staking yields roughly 3.5% APY. Restaking via EigenLayer adds 1 to 3% in AVS rewards. Using LRTs as collateral in DeFi lending can add another 2 to 5%. Each layer adds slashing risk, smart contract risk, and (for LRTs) depeg risk.
In 2025, several LRTs traded at discounts to their underlying ETH during periods of high exit demand when redemption queues backed up. The mechanics are similar to how stETH depegged during the June 2022 stress event: the protocol stays solvent, but the secondary market for the token moves against you if everyone tries to exit at once. See: liquid staking explained and crypto staking risks.
A concrete example
10 ETH deposited through Ether.fi earns approximately 3.5% from ETH staking rewards plus 1 to 2% from EigenLayer AVS rewards, totaling roughly 4.5 to 5.5% APY. The resulting eETH can be deposited in Morpho as collateral to borrow USDC at 3%, which is then deployed into a stablecoin pool at 5%. Net yield on the original 10 ETH: approximately 6 to 8%, before accounting for liquidation risk on the borrowed position. The yield is real; the risk stack is equally real.
Frequently asked questions
What gets slashed in restaking?
Your restaked ETH can be partially confiscated if an AVS you are securing behaves maliciously, such as signing conflicting data or equivocating. Slashing penalties are set by the AVS’s conditions and enforced by EigenLayer’s contracts. This is separate from standard Ethereum slashing for validator misbehavior, which exists regardless of restaking.
What happened to restaking yields in 2025?
EigenLayer’s early points program attracted large deposits that diluted yields as more capital competed for the same AVS reward pool. Annualized yields from AVS rewards dropped from speculative highs of 5 to 10% in 2024 to 1 to 3% by mid-2025 as more protocols joined and reward rates stabilized. This is the standard pattern for new yield sources in DeFi.
Is restaking the same as double-staking?
The “double” part refers to the same ETH securing two separate systems simultaneously. This is different from using the same ETH as collateral twice in the same protocol, which is generally prevented by the lending protocol’s logic. The risk in restaking is that both systems can slash the same ETH, compounding potential loss.
