BlockchainIntermediate#DeFi#Rewards
EigenLayer Staking
E
Definition
The process of 'Restaking' ETH or LSTs to secure multiple networks simultaneously, providing hyper-efficient yield.
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Concept Diagram
Key Takeaways
1
EigenLayer's Restaking lets you secure multiple protocols (AVSs) with the same staked ETH, stacking yields on top of each other.
2
AVSs (Actively Validated Services) like oracles, bridges, and DA layers rent Ethereum's security instead of bootstrapping their own validators.
3
Yield stacking means earning base ETH staking yield plus additional rewards from each AVS you help secure.
4
The trade-off is increased slashing risk — if any secured AVS misbehaves, your restaked ETH can be partially slashed.
Practical Example
You stake 32 ETH on Ethereum (earning ~3.5% APY). Through EigenLayer, you restake to secure an oracle AVS (+1.2% yield) and a bridge AVS (+0.8% yield). Your combined APY becomes ~5.5%, but you now carry slashing risk from two additional networks.
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Related Terms
Blockchain
LST (Liquid Staking Tokens)Tokens that represent staked assets (like stETH for ETH), allowing users to earn staking rewards while keeping their capital liquid for DeFi.
Blockchain
LRT (Liquid Restaking Tokens)A new layer of staking where LSTs are restaked on platforms like EigenLayer to secure additional services, issuing a new liquid token.
Blockchain
EigenLayer AVSActively Validated Services that use restaked ETH to secure their system without needing to bootstrap their own validator set.
Strategy
StakingThe process of locking up digital assets to support a network's operation in exchange for newly minted rewards.
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