Over the past year, EigenLayer has gained massive popularity with over 5 million ETH ($16+ billion) restaked on the platform. The protocol claims the 2nd largest dapp by total value locked, second only to Lido Finance.
Restaking is a concept pioneered by EigenLayer that enables builders to share Ethereum’s security base by using staked ETH as collateral for validators. Developers use EigenLayer to leverage Actively Validated Services (AVSs) to decentralize various categories, such as sequencers, AI, co-processors, oracles, and beyond.
Users can deposit ETH assets in exchange for heightened rewards, such as ecosystem airdrops and Restaked Points. Season 1 concluded in March, distributing the highly anticipated EIGEN token to restakers. The next season is currently underway, with a similar EIGEN allocation to be distributed to restakers at the end of season 2.
Listed in December 2023, Origin Ether was among the first LSTs to be integrated for restaking on EigenLayer. Restaking can be highly rewarding for LST holders, as there have already been several airdrops users have qualified for. Below, we’ve outlined how you can get started restaking Origin Ether, as well as ways to keep your funds liquid while restaking.
Restaking OETH on EigenLayer is a fairly straightforward process. There are a few key considerations, such as liquidity and rewards, that you should take into account before starting your restaking journey. Let’s delve into Ethereum restaking, and how you can get started by using Origin Ether.
In order to restake on EigenLayer, you must first hold Origin Ether or another supported token on the platform. OETH is one of the top yielding LSTs on EigenLayer, enabling you to earn competitive staking yields while earning restaking rewards.
If you don’t already own Origin Ether, you can swap ETH for OETH on Curve, or visit the Origin dapp to get OETH. The Origin dapp intelligently routes transactions through AMMs and direct minting to guarantee the best available rate on your swap.
Once you’ve navigated to the swap page, connect your wallet and approve your ETH to be used on the dapp. Then, enter the amount of ETH you want to swap for OETH, and sign the transaction from your wallet to execute the trade.
Next, visit the EigenLayer dapp and navigate to the OETH restaking page. The dapp shows your current restaked balance, as well as the market capitalization and total amount of restaked tokens by asset type.
To get started with restaking, enter the amount of OETH you’d like to deposit on EigenLayer and approve the spend from your wallet.
Before you submit the transaction, you will be able to select an operator for your restaked OETH. While there are dozens of operators you can chose from, popular operators include EigenYields, P2P, and AltLayer.
Once you’ve entered the amount of OETH you wish to restake and selected an operator, you can submit the transaction by approving the transaction from your wallet. Once finalized, you will begin earning Eigen Restaked points on top of your OETH yield.
Note: EigenLayer withdrawals take 7 days to finalize. This means that you will not have access to your tokens immediately after withdrawing, so make sure to account for this when managing your position.
Due to the liquidity restraints on EigenLayer, some users opt to restake their OETH through liquid restaking tokens (LRTs). Liquid restaking tokens operate similarly to LSTs, where users hold a liquid version of the restaked asset instead of locking funds directly.
On top of liquidity benefits, users can also earn additional rewards from LRT airdrops and incentives. PrimeStaked is the platform of choice for liquid restaking with Origin Ether, and an airdrop has been confirmed by the passage of YieldNest’s governance proposal. Users who hold primeETH and migrate to ynLSD following the migration will be eligible for multiple seasons of the YND airdrop, slated for H2 2024.
Restaking your OETH can be a great way to increase your rewards on Origin Ether. EigenLayer users earn Restaked Points, which directly translate into EIGEN tokens at the end of each season. While EIGEN is not currently transferrable, pre-markets have indicated a value around $10 per token at the time of writing.
Season 2 is currently underway, with 5% of the total EIGEN supply being allocated to restakers. A third season has been confirmed, so restakers can expect heightened rewards via EIGEN through 2024. Following season 3, restakers will continue earning rewards from EigenLayer AVSs and potential airdrops from ecosystem partners.
For further support or questions on how to restake Origin Ether, we invite you to join our team in Discord.
