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
Open Interest
The total value of outstanding perpetual swap contracts on a Perp DEX.
Collateralized Debt Position (CDP)
A smart contract structure where borrowers lock collateral to mint digital assets as a loan.
Embedded Call Option
A call option integrated into a security, like converts, allowing conversion to equity.
Buy Walls
Large accumulations of buy orders at a specific price level, forming a barrier against downward price movement.
At The Market (ATM)
A flexible equity offering allowing sales of shares into the market at prevailing prices over time.
BIS Stablecoin Principles
Bank for International Settlements' guidelines stressing regulation for stablecoins to mitigate financial stability risks and ensure they function as sound money.