Restaking is the process of extending the security and cryptoeconomic guarantees of a base blockchain's consensus layer—most notably Ethereum's proof-of-stake—to other applications, known as actively validated services (AVSs). This is achieved by allowing stakers to commit their already-staked assets (e.g., staked ETH or LSTs) to provide validation services for additional networks, such as rollups, oracles, or bridges, without requiring new capital. The concept was pioneered by EigenLayer, which introduced a set of smart contracts on Ethereum to facilitate this mechanism.
LABS
Glossary
Restaking
Restaking is a mechanism that allows staked cryptocurrency assets, like ETH, to be used to secure multiple decentralized services or protocols concurrently.
Chainscore © 2026
definition
BLOCKCHAIN SECURITY PRIMITIVE
What is Restaking?
Restaking is a cryptographic primitive that enables the reuse of staked assets, like ETH, to secure multiple decentralized applications or networks simultaneously, thereby increasing capital efficiency.
The core innovation of restaking is the introduction of slashing conditions beyond the base protocol. When a restaker opts into an AVS, they agree to a new set of rules and penalties. If the AVS they are securing experiences a fault or malicious activity, the restaker's principal stake on the main chain (Ethereum) can be slashed, creating a powerful economic disincentive for misbehavior. This creates a shared security model where multiple services can bootstrap trust from Ethereum's established and valuable validator set, rather than each building a smaller, less secure validator network from scratch.
There are three primary methods for participating in restaking: Native Restaking (directly using staked ETH from the Beacon Chain), Liquid Staking Token (LST) Restaking (using tokens like stETH or cbETH), and LP Token Restaking (using liquidity provider tokens from pools like ETH/stETH). Each method represents a different form of capital commitment but shares the same underlying principle of re-hypothecating security. This flexibility allows a wide range of participants, from solo stakers to DeFi users, to contribute to network security.
The primary benefit of restaking is dramatic capital efficiency. Stakers can earn multiple streams of staking rewards and AVS service fees from a single capital base. For new blockchain services (AVSs), it solves the cold-start problem by providing instant access to high-value, cryptoeconomically secured validation. However, it also introduces new risks, primarily slashing risk concentration and systemic risk, as a failure or corruption in one AVS could potentially impact the shared security pool and the main chain's stability.
The restaking ecosystem is rapidly evolving beyond simple validation. It enables the creation of new cryptoeconomic primitives like EigenDA (a data availability layer) and facilitates interoperability between various modular blockchain components. As a foundational DeFi Lego piece, restaking is becoming integral to the architecture of modular blockchains and the broader Web3 stack, representing a significant shift in how blockchain security is produced, consumed, and monetized.
how-it-works
MECHANICS
How Restaking Works
Restaking is a cryptographic primitive that allows a single staked asset to secure multiple decentralized services simultaneously, dramatically increasing capital efficiency within proof-of-stake ecosystems.
Restaking is the process of re-deploying the same staked cryptocurrency—typically Ethereum's ETH—to provide cryptoeconomic security for additional Actively Validated Services (AVS) beyond the base consensus layer. This is achieved by extending the slashing conditions of the original stake, meaning a validator's funds can be penalized for misbehavior on both the Ethereum mainnet and any AVS they opt into. The core innovation, pioneered by EigenLayer, decouples security provisioning from the launch of new networks, creating a marketplace where AVSs rent security from an existing pool of staked ETH.
The technical mechanism relies on smart contracts and a modified withdrawal credential. When a user restakes, they direct their staking rewards or principal to a restaking contract, which then issues a receipt token representing their commitment. Validators can then opt into specific AVSs, each with its own slashing conditions for faults like data unavailability or incorrect computation. This creates a layered security model where the same underlying capital is at risk across multiple systems, amplifying its utility and potential yield for the staker.
A critical component is the Operator, a node operator who manages the validation software for one or more AVSs. Restakers can delegate their stake to an Operator, who then decides which services to secure. This separation allows for specialization, where technically sophisticated Operators run the validation nodes while capital providers (restakers) share in the rewards and risks. The system's security depends on the proper alignment of incentives and the rigorous, audited design of slashing conditions for each service to prevent over-penalization.
The primary benefits are profound: capital efficiency for stakers earning multiple yields, bootstrapping security for new protocols without issuing a new token, and collective security that can be stronger than fragmented, isolated networks. However, it introduces new risks, notably slashing risk concentration where a fault in one AVS could cascade, and systemic complexity that requires robust risk management and operator due diligence from participants.
key-features
MECHANICAL PRIMER
Key Features of Restaking
Restaking is a cryptoeconomic primitive that allows staked assets, like ETH, to be reused to secure additional networks or services, creating a layered security model.
01
Asset Rehypothecation
The core mechanism where a staked asset (e.g., ETH in Ethereum's Beacon Chain) is used as collateral to secure other applications, such as Actively Validated Services (AVS). This reuses the same economic security, eliminating the need for new tokens and increasing capital efficiency for stakers.
02
Actively Validated Services (AVS)
The decentralized services that restaked assets secure. These can include:
- New Layer 1 or Layer 2 blockchains
- Data availability layers (e.g., EigenDA)
- Oracle networks
- Cross-chain bridges AVSs pay fees to restakers for the security they provide.
03
Slashing & Penalties
A critical security feature where malicious or faulty behavior by an operator securing an AVS leads to the partial or total loss of their restaked assets. This creates strong economic disincentives for misbehavior, with slashing conditions defined by each AVS.
04
Operator Delegation
The process where a restaker (asset holder) delegates their staked assets to a professional node operator. The operator runs the necessary software to validate the AVS, while the restaker retains ownership of their assets and earns rewards, minus an operator fee.
05
Liquid Restaking Tokens (LRTs)
Liquid derivatives (e.g., ezETH, rsETH) issued by protocols when a user deposits their restaked position. These tokens represent a claim on the underlying restaked assets and their accrued rewards, providing liquidity and enabling the restaked position to be used in DeFi (e.g., lending, providing liquidity).
06
Shared Security Model
The foundational principle where multiple AVSs pool security from the same base of restaked capital (e.g., the Ethereum stake). This creates a more robust and cost-effective security layer for new applications compared to bootstrapping a new validator set with a separate token.
primary-models
RESTAKING
Primary Restaking Models
Restaking is the process of reusing the same staked ETH to secure multiple services. The following are the principal architectural models that define how this is implemented.
02
Liquid Restaking Tokens (LRTs)
A derivative model that provides liquidity for restaked positions by issuing a tokenized representation.
- How it works: Users deposit ETH or LSTs into a Liquid Restaking Protocol (e.g., Kelp DAO, Renzo). The protocol handles the native restaking and mints a liquid token (e.g., rsETH, ezETH) in return.
- Key Benefit: Unlocks liquidity and composability, allowing the restaked position to be used in DeFi.
- Consideration: Introduces a protocol risk layer from the LRT provider.
03
Pooled Restaking
A model where multiple users pool their ETH to collectively run a single Ethereum validator that is also restaked.
- How it works: Similar to a staking pool, but the pooled validator's stake is also opted into EigenLayer's slashing conditions for AVSs.
- Accessibility: Lowers the 32 ETH barrier to entry for native restaking.
- Custody: Typically requires trusting the pool operator with the validator keys and restaking decisions.
04
Yield Source & Mechanism
Restaking models generate yield from two primary sources: the base Ethereum staking reward and additional rewards from securing Actively Validated Services (AVSs).
- Base Yield: The standard consensus and execution layer rewards from validating Ethereum.
- AVS Rewards: Restakers can opt their stake into multiple AVSs (e.g., rollups, oracles, data availability layers) and earn additional fees or token incentives.
- Risk-Reward: Opting into more AVSs increases potential yield but also aggregates slashing risk.
05
Operator-Based Restaking
A delegation model where restakers assign their stake to a professional Operator to manage AVS commitments on their behalf.
- How it works: Restakers delegate their stake (native or via LRT) to an Operator node. The Operator decides which AVSs to secure and runs the required software.
- Role Separation: Enables specialization; restakers provide capital, Operators provide technical expertise.
- Trust Assumption: Restakers must trust the Operator's competence and honesty, as the Operator can get the stake slashed for misbehavior.
examples
RESTAKING
Examples & Use Cases
Restaking extends the utility of staked assets, allowing them to secure multiple services beyond their native blockchain. This section details its primary applications and the infrastructure it enables.
02
Bootstrapping New Networks
Restaking solves the cold-start problem for new protocols by allowing them to leverage Ethereum's established economic security instead of bootstrapping a new token and validator set from scratch. This provides:
- Instant Security: Access to billions in staked ETH capital.
- Reduced Overhead: Developers avoid complex tokenomics and incentive design for security.
- Shared Security Model: Similar to how Polkadot's shared security or Cosmos Interchain Security works, but for a wider ecosystem of services.
03
Enhancing Rollup Security
Rollups can use restaking to enhance their security guarantees beyond the base layer. This is achieved through:
- Decentralized Sequencers: A set of operators, backed by restaked ETH, can run a decentralized sequencer network, mitigating censorship and liveness risks.
- Faster Finality: Services like EigenLayer's fast finality layer can provide near-instant confirmation for rollup transactions, backed by restaking slashing conditions.
- Verification Services: Restaked operators can perform verification tasks (e.g., ZK proof verification) for rollups, creating an additional economic security layer.
04
Operator Services & Node Networks
Restaking creates a marketplace for node operators who run the software for AVSs. Operators can:
- Earn Additional Yield: Generate fees from multiple AVSs on top of base Ethereum staking rewards.
- Specialize: Choose which AVSs to support based on technical requirements and reward profiles.
- Face Slashing Risks: Are subject to cryptoeconomic slashing if they act maliciously or fail to perform their duties for any AVS they opt into, creating strong alignment.
05
Liquid Restaking Tokens (LRTs)
Liquid Restaking Tokens are a major use case, representing a claim on restaked assets and their accrued rewards. They provide:
- Liquidity: Users can deposit ETH or LSTs and receive a tradable LRT (e.g., eigenPOD receipts, Renzo's ezETH, Kelp's rsETH).
- DeFi Composability: LRTs can be used as collateral in lending protocols, liquidity pools, and other DeFi applications.
- Automated Management: LRT protocols often handle AVS selection and operator delegation, simplifying the restaking process for users.
security-considerations
RESTAKING
Security Considerations & Risks
Restaking introduces novel security models and attack vectors by leveraging the same capital to secure multiple services. This section details the primary risks inherent to this mechanism.
01
Slashing Risk Amplification
Restaking exposes capital to slashing penalties across multiple protocols simultaneously. A validator's fault in one service (e.g., an AVS) can trigger slashing on the restaked ETH, potentially cascading to other services it secures. This creates a correlated risk profile where a single failure can have amplified financial consequences.
02
Operator Centralization & Trust
Delegated restaking shifts security assumptions from the base consensus layer to node operators. Users must trust operators to:
- Run AVS software correctly to avoid slashing.
- Maintain high uptime and performance.
- Act honestly and not collude. This creates a trusted third-party risk and can lead to centralization around a few large, reputable operators.
03
AVS Consensus & Liveness Attacks
Each Actively Validated Service (AVS) introduces its own consensus mechanism and liveness requirements. A malicious or faulty AVS can:
- Cause liveness failures for its specific application.
- Attempt to corrupt the data or state it produces.
- Be targeted by Denial-of-Service (DoS) attacks, impacting the services it provides. The security of the AVS is now a critical dependency.
04
Economic & Liquidity Risks
Restaked assets are typically illiquid or have reduced liquidity (e.g., liquid restaking tokens (LRTs) may trade at a discount). Key risks include:
- Over-collateralization: The total value secured (TVS) across AVSs may exceed the economic security provided by the restaked capital.
- LRT Depeg Risk: The market price of a liquid restaking token can diverge from its underlying restaked asset value.
- Withdrawal Delays: Unstaking often involves unbonding periods, limiting capital agility.
05
Smart Contract & Systemic Risk
Restaking protocols are built with complex smart contracts that manage deposits, delegation, and slashing. This introduces:
- Smart contract vulnerabilities: Bugs in the restaking or AVS contracts could lead to fund loss.
- Upgrade risks: Governance decisions or admin keys could alter system parameters.
- Systemic risk: A critical failure in a major restaking protocol could have cascading effects on the many AVSs and DeFi protocols built on top of it.
06
Ethereum Consensus Layer Risk
Restaking adds new responsibilities and potential penalties to Ethereum validators. This could theoretically impact the base layer:
- Increased complexity for validators could lead to more errors.
- Resource exhaustion from running multiple AVS clients.
- Controversial slashing events on restaked ETH could create social consensus challenges for the Ethereum network. The crypto-economic security of Ethereum itself is the ultimate backstop.
PROTOCOL COMPARISON
Restaking vs. Traditional Staking
A side-by-side comparison of the core mechanisms, security models, and economic properties of restaking and traditional proof-of-stake staking.
| Feature | Traditional Staking | Native Restaking | Liquid Restaking |
|---|---|---|---|
Primary Asset | Native Protocol Token (e.g., ETH, SOL) | Staked Native Token (e.g., stETH, LST) | Liquid Restaking Token (e.g., ezETH, rsETH) |
Core Function | Secure a single blockchain | Secure multiple services (AVSs) from a single consensus layer | Secure multiple services (AVSs) via a liquid derivative |
Capital Efficiency | |||
Yield Source | Protocol inflation & transaction fees | Protocol fees + AVS service fees | Protocol fees + AVS service fees |
Slashing Risk | Single protocol slashing | Multi-protocol slashing (cascading risk) | Multi-protocol slashing (cascaking risk) |
Liquidity | Locked until unbonding period | Locked in EigenLayer contracts | Tradable on secondary markets |
Operator Role | Validator node operator | Node operator for multiple AVSs | Delegator to an operator pool |
Typical Unbonding Period | Days to weeks (e.g., 7-28 days) | ~7 days (EigenLayer queue) | Instant (via LRT market sale) |
etymology
TERM ROOTS
Etymology & Origin
The concept of restaking did not emerge from a vacuum; it is a direct evolution of foundational blockchain primitives, born from the need to solve specific economic security challenges.
The term restaking is a compound word formed from the prefix re- (meaning "again") and the established crypto-economic verb staking. Its etymology directly reflects its core function: the act of committing the same capital—specifically, staked ETH or Liquid Staking Tokens (LSTs)—to secure additional services again, beyond its initial purpose of securing the Ethereum Beacon Chain. This linguistic construction mirrors similar financial concepts like rehypothecation in traditional finance, where collateral is reused to secure multiple obligations.
The origin of restaking as a formalized protocol mechanism is credited to EigenLayer, which introduced the concept in 2023. It emerged as a direct response to the "security fragmentation" problem in the broader blockchain ecosystem. New networks and services (like Actively Validated Services or AVSs) faced a costly and slow bootstrapping process to establish their own validator sets and economic security. Restaking provided a novel solution by allowing these services to "rent" security from Ethereum's established and highly valuable staked capital base, creating a marketplace for pooled security.
Conceptually, restaking builds upon two key prior innovations: Proof-of-Stake (PoS) consensus, which introduced the model of economic staking for security, and Liquid Staking, which created fungible representations of staked assets (LSTs). By combining these, restaking enables a form of cryptoeconomic leverage, where the slashing risk associated with a single stake is extended to penalize misbehavior on multiple, otherwise independent, systems. This establishes a new primitive: programmable trust, derived from Ethereum's core consensus layer.
RESTAKING
Frequently Asked Questions (FAQ)
Essential questions and answers about restaking, the process of reusing staked assets to secure additional services on networks like EigenLayer.
Restaking is a mechanism that allows staked assets, like staked ETH (stETH), to be reused to secure additional services beyond their native blockchain. It works by extending the cryptoeconomic security of a base layer (e.g., Ethereum) to other applications, called Actively Validated Services (AVS). Users deposit their staked assets into a restaking protocol (like EigenLayer), which then enables those assets to provide slashing guarantees for AVSs such as new blockchains, oracles, or data availability layers. This creates a shared security marketplace where one stake can secure multiple services, improving capital efficiency for stakers and security for new protocols.
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