What is Restaking on EigenLayer?

In this blog, we’ll explore restaking with EigenLayer and what it aims to offer to the Ethereum landscape.

But First: Staking Native Ethereum and Liquid Staking
Staking plays a pivotal role in securing a proof-of-stake (PoS) blockchain, and this has been Ethereum’s form of consensus since switching from proof-of-work (PoW) at the merge. Network participants today on Ethereum stake 32 ETH to a validator, which performs lightweight operations to secure the Layer-1 chain. In return for this consensus work, these validators earn a yield, often ranging between 3 - 5% APY.

As of March 2024, nearly 32 million ETH (over $126 billion) has been staked on the Ethereum network, operated by 991,013 validators across the globe, according to https://dune.com/hildobby/eth2-staking and beaconcha.in. As far as PoS blockchain networks go, Ethereum has cemented itself as the most secure and decentralized, enabling generalized computation across the Ethereum virtual machine (EVM) and its associated networks. However, it comes at a cost; 32 ETH is too large of an amount for most people to afford, and staking is a technical process that is quite unreasonable for non-technical people.Enter liquid staking, which allows anyone holding any amount of ETH, to deposit into liquid staking protocols (Rocketpool, Lido, Ether.Fi, etc…), and receive a “liquid staking token,” or LST, that earns a comparable yield to staking natively (minus a slight operator commission). The operators on those liquid staking networks take the pooled ETH from thousands of depositors and combine them into a series of validators staking 32 ETH. The yield then is generated, aggregated, and then accrued back to the users’ LST holdings automatically.

Code Snippet

The code block element supports most programming languages, such as typescript, rust, bash, solidityEdit: &Go
but is not inclusive of every language. For example, the code block does not support C++ or GraphQL. A complete list of supported languages is available in Element settings panel>Code block settings>Language.

1<pre class="shiki catppuccin-mocha vp-code twoslash lsp" tabindex="0" style="background-color: rgb(30, 30, 46); color: rgb(205, 214, 244);"><code><span class="line"><span style="color: rgb(203, 166, 247);">import</span><span style="color: rgb(147, 153, 178);"> {</span><span style="color: rgb(205, 214, 244);"> </span><span style="color: rgb(205, 214, 244);"><div class="v-popper v-popper--theme-twoslash v-popper--theme-dropdown twoslash-hover"><span>codeToHast</span></div></span><span style="color: rgb(205, 214, 244);"> </span><span style="color: rgb(147, 153, 178);">}</span><span style="color: rgb(203, 166, 247);"> from</span><span style="color: rgb(166, 227, 161);"> 'shiki'</span></span>
2  <span class="line"></span>
3  <span class="line"><span style="color: rgb(203, 166, 247);">const</span><span style="color: rgb(205, 214, 244);"> </span><span style="color: rgb(205, 214, 244);"><div class="v-popper v-popper--theme-twoslash v-popper--theme-dropdown twoslash-hover"><span>hast</span></div></span><span style="color: rgb(205, 214, 244);"> </span><span style="color: rgb(148, 226, 213);">=</span><span style="color: rgb(137, 180, 250); font-style: italic;"> </span><span style="color: rgb(137, 180, 250); font-style: italic;"><div class="v-popper v-popper--theme-twoslash v-popper--theme-dropdown twoslash-hover"><span>codeToHast</span></div></span><span style="color: rgb(205, 214, 244);">(</span><span style="color: rgb(166, 227, 161);">'.text-red { color: red; }'</span><span style="color: rgb(147, 153, 178);">,</span><span style="color: rgb(147, 153, 178);"> {</span></span>
4  <span class="line"><span style="color: rgb(205, 214, 244);">  </span><span style="color: rgb(205, 214, 244);"><div class="v-popper v-popper--theme-twoslash v-popper--theme-dropdown twoslash-hover"><span>lang</span></div></span><span style="color: rgb(148, 226, 213);">:</span><span style="color: rgb(166, 227, 161);"> 'css'</span><span style="color: rgb(147, 153, 178);">,</span></span>
5  <span class="line"><span style="color: rgb(205, 214, 244);">  </span><span style="color: rgb(205, 214, 244);"><div class="v-popper v-popper--theme-twoslash v-popper--theme-dropdown twoslash-hover"><span>theme</span></div></span><span style="color: rgb(148, 226, 213);">:</span><span style="color: rgb(166, 227, 161);"> 'catppuccin-mocha'</span></span>
6  <span class="line"><span style="color: rgb(147, 153, 178);">}</span><span style="color: rgb(205, 214, 244);">)</span></span></code></pre>
import { 
codeToHast
} from 'shiki'
const
hast
=
codeToHast
('.text-red { color: red; }', {
lang
: 'css',
theme
: 'catppuccin-mocha'
})
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