Renzo Restaked ETH

EigenLayer is a protocol built on Ethereum that introduces restaking, a new primitive in cryptoeconomic security. It allows staked ETH to be re-staked to secure other decentralized applications (AVSs), thereby extending Ethereum's security to these additional services.

What is Restaking?

Restaking enables users who have staked ETH (either natively or via a Liquid Staking Token) to opt-in to secure other protocols on EigenLayer. This mechanism allows these protocols, known as Actively Validated Services (AVSs), to leverage Ethereum's established trust network.

Benefits of EigenLayer

• For AVSs: Access to a large pool of staked ETH for enhanced security without needing to bootstrap their own trust network.
• For Stakers: Opportunity to earn additional rewards by securing multiple services with their staked ETH.
• For Ethereum: Further solidifies its role as a foundational layer for decentralized security.

How it Works

Participants deposit their staked ETH or Liquid Staking Tokens into EigenLayer smart contracts. By doing so, they agree to extend their ETH's security to various AVSs, subject to additional slashing conditions defined by each AVS. This creates a marketplace where AVSs can acquire cryptoeconomic security and restakers can earn extra yield.