EigenLayer is a restaking protocol on Ethereum that allows ETH stakers to ‘re-stake’ their staked ETH (or liquid staking tokens like stETH) to simultaneously secure additional decentralised services beyond Ethereum itself. The core insight: validators already put ETH at stake to secure Ethereum; EigenLayer lets that same stake secure other networks (‘Actively Validated Services’ or AVSs) — including data availability layers, oracle networks, bridges, and new blockchains. AVSs pay restakers additional yield for this extended security guarantee. This is a massive capital efficiency unlock: instead of each new protocol needing to bootstrap its own token-based security from scratch, they can rent Ethereum’s $30B+ of staked security. EigenDA (EigenLayer’s own data availability AVS) is used by several L2s including Mantle. EIGEN is the governance token and also a unique ‘intersubjective’ staking token designed to resolve disputes that on-chain code cannot — like whether an AI model behaved correctly. EigenLayer launched mainnet staking in 2023 and the EIGEN token in 2024. ‘Points farming’ — earning EigenLayer points before the token launch — was a dominant DeFi activity throughout 2024. The restaking ecosystem spawned liquid restaking tokens (LRTs) like weETH (ether.fi), rsETH (Kelp), and ezETH (Renzo) used in DeFi.
Example: You hold 10 stETH earning 4% from Ethereum staking. You restake it on EigenLayer and opt into 3 AVSs: EigenDA, an oracle network, and a cross-chain bridge. Each AVS pays you 1-2% additional yield. Your total return rises to 7-9% on the same ETH, with slashing risk if AVSs misbehave — a calculated trade-off for higher yield.
Learn more: EigenLayer
