EigenLayer: What It Is and How It’s Changing Ethereum Staking

When you stake ETH on Ethereum, you help secure the network and earn rewards. But EigenLayer, a protocol that lets stakers reuse their locked-up ETH to secure other blockchains and apps. Also known as restaking, it turns your existing stake into a multi-use tool—no extra tokens needed. Instead of just protecting Ethereum, your staked ETH can now help secure things like decentralized oracles, bridge protocols, and custom rollups. It’s like renting out your security deposit to neighbors who need it.

That sounds great, but it comes with big risks. If one of those apps gets hacked, your staked ETH could be slashed—just like if you broke a rule on Ethereum itself. EigenLayer doesn’t create new security; it borrows Ethereum’s. That means the safety of hundreds of new projects now depends on the same validators who protect ETH. It’s efficient, but it also concentrates risk. Projects like LayerZero, Chainlink, and Axelar already use EigenLayer to cut costs and boost trust. And because it runs on Ethereum, you don’t need to move your ETH—just opt in through your staking provider.

Most people still think staking is just about earning interest. EigenLayer flips that. It’s not passive income anymore—it’s active participation in a growing web of interconnected protocols. You’re not just a staker. You’re a shared security provider. That’s why you’ll find posts here about how restaking affects token prices, which wallets support it, and why some DeFi apps are moving away from it after exploits. Some users made big gains early. Others lost everything when a bridge failed. This collection covers the real wins, the quiet failures, and the technical details most guides skip. You’ll see what works, what doesn’t, and what to watch for next.

What Is Restaking in Cryptocurrency? A Clear Guide to Earning More Yield on Staked ETH

Posted By Tristan Valehart    On 21 Nov 2025    Comments (18)

What Is Restaking in Cryptocurrency? A Clear Guide to Earning More Yield on Staked ETH

Restaking lets you reuse your staked Ethereum to secure other blockchain services and earn higher yields - up to 12% APY. But it comes with complex risks like slashing across multiple protocols. Learn how it works, who uses it, and whether it's right for you.

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