Last Updated: March 2026
EigenLayer introduced restaking — using already-staked ETH to simultaneously secure additional protocols. This innovation lets new projects bootstrap security from Ethereum’s existing validator set rather than building their own from scratch.
History and Founders
Founded by Sreeram Kannan, a University of Washington professor. EigenLayer raised $165M+ from a16z and other top VCs. The concept addresses a fundamental challenge: new protocols need security, and building a validator set from scratch is expensive. EigenLayer lets them borrow Ethereum’s. See PoS guide and ETH staking guide.
How Restaking Works
- Stake ETH normally (directly or via liquid staking like Lido)
- Deposit staked ETH (or LSTs like stETH) into EigenLayer
- Your staked ETH now secures both Ethereum AND additional protocols (called AVSs)
- Earn extra yield from the additional protocols you secure
Tokenomics
EIGEN token: Used for governance and as a form of “intersubjective” staking — securing against faults that can’t be verified on-chain. See tokenomics guide.
Why EigenLayer Matters
- Shared security: New protocols can launch with Ethereum-grade security from day one
- Additional yield: ETH stakers earn more by opting into additional services. See passive income guide
- Innovation enabler: Reduces the cost and complexity of launching new decentralized services
Pros and Cons
- Pro: Fundamental innovation — creates a marketplace for blockchain security
- Pro: Massive TVL — tens of billions in restaked ETH
- Pro: Top-tier VC backing and academic founder
- Con: Additional smart contract risk layers on top of base staking
- Con: Slashing risk from multiple protocols simultaneously
- Con: EIGEN token utility is complex and still developing
Frequently Asked Questions
Is restaking safe?
Restaking adds additional smart contract risk on top of base ETH staking. Use established AVSs and understand that slashing risk exists from multiple sources. See security guide.
How do I restake?
Deposit stETH or other LSTs into EigenLayer through app.eigenlayer.xyz. See ETH staking guide.
