Restaking (Ethereum PoS)
Restaking on Ethereum’s Proof-of-Stake (PoS) enables staked ETH to secure additional protocols via EigenCloud (previously EigenLayer), earning extra rewards while extending Ethereum’s cryptoeconomic security.
What is Restaking (Ethereum PoS)?
Restaking, pioneered by EigenCloud (formerly EigenLayer), allows Ethereum validators and liquid staking token (LST) holders to reuse their staked ETH to provide security for other decentralized services, known as Actively Validated Services (AVSs). Launc
hed in 2023 on Ethereum’s mainnet, EigenCloud operates as a middleware protocol where users deposit native staked ETH (minimum 32 ETH per validator) or LSTs like stETH into smart contracts, delegating them to operators who run AVS nodes. This extends Ethereum’s $33+ billion in staked ETH to secure rollups, oracles, bridges, and data availability layers, reducing bootstrap costs for new protocols from millions in validator setup to renting Ethereum’s pooled security.
Users earn compounded yields—base Ethereum staking APR of ~3.2% plus AVS-specific rewards in ETH, EIGEN tokens, or ERC-20s—potentially reaching 5-8% total, according to EigenCloud data and DeFiLlama TVL metrics showing $17.51 billion restaked As of 2025.
Related Terms
Option Value (MSTR)
The premium paid for an option contract, reflecting intrinsic and time value.
Epoch of Ethereum PoS
A fixed period in Ethereum’s proof-of-stake consensus, typically 32 slots, used for validator duties and finality.
L2BEAT
An analytics platform tracking Ethereum Layer 2 scaling solutions, providing metrics on TVL, risks, and adoption.
HODL
A term, originating from a misspelling of "hold," encouraging long-term retention of digital assets despite market volatility.
BTC Risk (MSTR)
The annual probability that a liability's BTC Rating falls below 1x, estimated via Black-Scholes for asset drawdown.
Don't Trust, Verify
"Don't Trust, Verify" is a core principle in blockchain technology, emphasizing that users should independently validate transactions and data on the network rather than relying on intermediaries.