In the Ethereum world, a new concept is causing a stir: restaking via EigenLayer. This still young but extremely influential project promises nothing less than the reuse of staked ETH to secure additional networks and services while generating additional returns.
But how does restaking work exactly, why is it so powerful, and where are the dangers?
What is restaking anyway?
Staking means that users lock their ETH to secure the Ethereum network and receive rewards for it. With EigenLayer, a radical approach comes into play: users can lend their already staked ETH again to secure additional services, so-called Actively Validated Services (AVS).
An example: You have already staked ETH through Lido. With EigenLayer, you can use this staked ETH again to secure a decentralized oracle or a data availability layer and be rewarded again for it.
Why is this exciting for the community?
Capital efficiency: You can draw multiple returns from the same staked ETH, a real boost for yield maximizers.
More security for new services. New projects benefit from the security of the existing Ethereum staking setup without having to build their own validators.
Innovation turbo: EigenLayer could enable a whole ecosystem of AVS projects that develop faster and more securely.
But there are also massive risks lurking here
Slashing cascade: If an AVS is poorly designed or compromised, your original ETH could also be lost through slashing, even though you never harmed Ethereum.
Centralization through restaking cartels. Large staking providers could gain disproportionate influence through EigenLayer if they act as intermediaries between ETH and AVS.
Regulatory gray areas: Restaking could legally be considered leverage or even the reuse of collateral, with legal consequences for providers and users.
Conclusion: Evolution or ticking time bomb?
EigenLayer is at the beginning, but its potential and risk are enormous. For experienced stakers, it offers new revenue streams. For developers, it becomes a catalyst for scalable new services. However, without careful risk assessment and decentralized governance, we could also cultivate a systemic risk for Ethereum itself.