EigenLayer is a restaking protocol that allows ETH stakers (and LST holders) to "restake" their assets — earning additional yield by simultaneously securing other networks and services (called Actively Validated Services or AVSes) using the same staked ETH. EigenLayer launched in 2023 and rapidly accumulated over $12B in restaked assets, establishing itself as a foundational piece of Ethereum's modular security architecture.
The Restaking Concept
When ETH is staked natively on Ethereum, it secures Ethereum's consensus. EigenLayer extends this: the same staked ETH can simultaneously opt into securing additional services — data availability layers, oracle networks, bridges, rollup sequencers, and other infrastructure. Each AVS the restaker opts into can impose additional slashing conditions, and in return, the restaker earns additional yield from AVS fees.
This "pooled security" model allows new protocols to bootstrap security by paying EigenLayer restakers rather than building their own validator set from scratch. A new rollup can rent Ethereum's economic security via EigenLayer rather than issuing tokens and bootstrapping a new validator network.
LST Restaking vs Native Restaking
EigenLayer supports two restaking modes: 1. LST Restaking: Deposit stETH, rETH, cbETH, or other LSTs into EigenLayer. These assets count toward operator delegation. 2. Native Restaking: Set a native Ethereum validator's withdrawal credentials to an EigenLayer smart contract, enabling the same ETH to be slashed by both Ethereum and AVS slashing conditions.
EIGEN Token
EIGEN is the EigenLayer governance and "intersubjective work token" — used for disputes in AVSes where slashing conditions cannot be objectively proven on-chain. EIGEN holders act as an arbitration layer for contested AVS states. A portion of AVS fees are distributed to EIGEN stakers.
Risks of Restaking
EigenLayer introduces additional slashing risk: restakers who opt into poorly designed or malicious AVSes could lose ETH to incorrect AVS slashing. EigenLayer mitigates this through a veto committee that can block slashing events for a 14-day window, but the risk is not zero. Cascading slashing across multiple AVSes could theoretically destabilize a large restaking portfolio.