You may have heard that 'Ethereum staking' can yield profits, but recently a new concept called 'restaking' has gained traction, along with new tokens like LRT (Liquid Restaking Token). Many are puzzled: 'I already staked ETH; how can I restake? Is it risky?'
‘I have already staked my ETH, how can I restake? Is the risk high?’
Today, I will use a simple example to help you understand what restaking is, its uses, and the logic behind its popularity.
🧱 Basic Review: What is ETH Staking?
Ethereum PoS Mechanism: Users lock ETH to participate in consensus, run nodes or stake through service providers (like Lido, Rocket Pool) to earn validation rewards, with an annual yield of about 3~5%.
Staking Tokens: Like the stETH provided by Lido, representing ETH in staking, supporting circulation and DeFi usage.
🔁 What is Restaking?
Core Idea:
The ETH you stake originally only serves the 'Ethereum main chain'. By restaking, you can lend this portion of your assetsto other protocols as collateral, earning a 'second income'.For example:
You deposit ETH to Ethereum and earn POS rewards;
then authorize this 'staked equity' to other projects (like oracles, Rollups, bridges), and these projects give you extra rewards—this is 'restaking'.
Platform Representative: EigenLayer
is currently the hottest restaking platform, allowing users to delegate staked ETH, stETH, rETH, etc.
will integrate multiple 'module' projects (AVS: Actively Validated Services), such as oracles, consensus networks, etc., which rely on users' restaked assets for security.
🪙 What is LRT (Liquid Restaking Token)?
Definition:
ETH locked after restaking cannot just sit idle; the EigenLayer ecosystem has seen a large number ofLRT protocols, such as EtherFi, Puffer, Renzo, which package the restaked ETH into new tokens—LRT, allowing users to continue trading, borrowing, and providing liquidity.Popular LRT Project Examples:
📈 Why has it become popular? A Beginner’s Understanding of the Logic Behind It
Reason 1: Yield Stacking
Regular ETH staking can only earn money once; restaking is like 'renting out', yielding multiple rewards.
Plus, liquidity tokens can also participate in DeFi, stacking yields layer upon layer.
Some jokingly call it 'DeFi's annuity product'.
Reason 2: Airdrop Effect
LRT projects generally promise to issue tokens (or points redeemable for tokens) to attract users.
Users storing ETH not only earn staking rewards but can also take advantage of project benefits, leading to a massive influx of funds.
Currently, LRT TVL (Total Locked Value) has exceeded 10 billion USD!
Reason 3: Surge in Demand for L2, Oracles, and Other Projects
Rollups, oracles, cross-chain bridges, etc., do not inherently possess 'economic security'. To have someone stake 'endorsements' for them, they need restaking platforms like EigenLayer.
It's like you are collateralizing ETH to these new protocols, making them safer, and then benefitting from it.
⚠️ What risks should newcomers be aware of?
Restaking ≠ No Risk: If the protocol you restake to encounters issues, your ETH may be 'slashed'.
Liquidity Risk: LRT may decouple in extreme markets, and may not necessarily redeem 1:1 for ETH.
Technical and Compliance Risks: These protocols are still in early development stages, with uncertainties in compliance and code security.
Airdrop Uncertainty: Although many protocols promise airdrops, timing and amounts are unpredictable. Don't go all-in; participate in a diversified manner.
🧭 Newcomer Participation Guide
✅ If you want to participate, you can:
Deposit stETH from Lido or rETH from Rocket Pool into EigenLayer (currently still on the waiting list);
or directly purchase LRT (like ezETH, eETH), holding on for airdrops;
Recommended to follow: EtherFi, Renzo, Puffer, KelpDAO, EigenPie, Bedrock, etc.
Join Discord/TG groups to stay updated on point rules and node activities.
✅ Beginner's Guide
Restaking is a new way for you to earn more money with staked ETH, represented by the protocol EigenLayer;
The LRT token is the 'representative right' after restaking, making it easier to continue participating in DeFi and potentially receive project airdrops;
Beginners should pay attention to risk control, choose active projects, and track the ecological development trends over the long term.
Keywords: Restaking, EigenLayer, LRT, Airdrop, Slashing Risk