EigenLayer
EigenLayer is the marketplace that invented restaking: Ethereum stakers opt in to secure additional protocols ("actively validated services") with the same
EigenLayer is the marketplace that invented restaking: Ethereum stakers opt in to secure additional protocols (“actively validated services”) with the same stake, earning extra rewards for extra slashing exposure. One capital base, many security jobs.
How it works
Stakers delegate to operators running AVS software (oracles, bridges, data layers, sequencers). Each AVS defines its own slashing conditions enforced by EigenLayer contracts. Rewards stack per service; so does risk — a slash in any AVS cuts the shared stake.
Why it matters for decentralization
Restaking could bootstrap security for hundreds of small protocols that could never afford their own validator sets — genuinely democratizing. Or it concentrates everything into a few giant operators and correlated slashing scenarios, turning Ethereum’s security monoculture into systemic fragility. Which future arrives depends on operator diversity and slashing limits — both measurable, both worth watching.
Risks & trade-offs
Correlated slashing (one bug, many services, simultaneous cuts); governance capture by the largest restaking pools; yield-chasing into unaudited AVSs; and leverage-like reflexivity in downturns.
FAQ
Is restaking mandatory for stakers? No — fully opt-in per AVS. Base Ethereum staking is unaffected if you never touch it.
What are LRTs? Liquid restaking tokens — tradeable receipts for restaked positions, adding a liquidity layer (and another risk layer) on top.
Biggest realistic danger? A critical AVS bug triggering mass slashing across shared stake — the interconnectedness itself is the systemic risk.