EigenLayer is a protocol designed for the Ethereum network that introduces a concept called restaking.
Staking Ethereum allows you to participate in securing the network while earning rewards for your contribution. The EigenLayer ecosystem offers a way to take this a step further. By opting into the protocol’s smart contracts, you can put your staked Ethereum to additional use.
Restaking ETH lets builders use your staked assets to help secure decentralized products within Ethereum’s ecosystem. While this can raise the risk of losing ETH from slashing (a penalty when rules are broken), ETH restakers get higher rewards (APYs) to make up for it.
Basically, your staked Ethereum can do two jobs at once. It still helps keep the Ethereum blockchain safe, but it also supports and strengthens other projects within the network. This makes your ETH work harder, boosting security while helping new projects grow, all managed by EigenLayer's smart contracts and operators.
EigenLayer has raised $50M led by Blockchain Capital during their Series A funding round, and $100M led by a16z as part of their Series B funding. Let’s take a look at what EigenLayer is and how it works.
In less than a year, EigenLayer has captured more than $8B in TVL – highlighting the massive enthusiasm ETH stakers have for restaking.
With liquid restaking, users receive a liquid restaking token (LRT) representing their staked position in return for restaking their assets. This means they're not just sitting on locked assets; they can trade or use these tokens, keeping their assets fluid and engaged in the ecosystem. So, while the assets are locked in EigenLayer, users can use liquid restaking tokens to bolster liquidity, leveraging decentralized trust to ensure security and transparency.
This opens up new avenues for bootstrapping networks' security through staked ETH capital. It provides developers with a more secure, efficient, and dynamic environment to build and innovate validation services and more.
In addition, restaking presents an attractive route for users to earn additional yields. By participating in restaking, users can earn higher returns to compensate for the increased risks associated with slashing penalties. The protocol currently offers users EigenLayer Points while it prepares for EIGEN tokens to become liquid. Following this launch, restakers should begin to earn heightened yields.
EigenLayer’s supported assets include Ether (ETH), OETH, and 6 other leading liquid staking tokens (LSTs).
EigenLayer gives users points for restaking their Ethereum assets. You can earn these points by using liquid restaking protocols like YieldNest and Ether.fi.
YieldNest (ynLSDe)
YieldNest's ynLSDe lets users boost their staking yield, earn EigenLayer points, and collect YieldNest Seeds by restaking Liquid Staking Tokens (LSTs). You can restake tokens from platforms like Lido, Frax, Mantle, and Origin Ether (OETH) without locking up your assets.
YieldNest has $29.36M in total value locked (TVL) and currently offers a 3.38% APR, plus extra rewards from EigenLayer Points and AVS baskets. Holding ynLSDe means your rewards grow over time, increasing the value of your assets.
Ether.fi
Ether.fi is another option for restaking, where users stake ETH and receive eETH, a liquid restaking token. It’s designed to be simple, making it great for solo stakers or big investors. Ether.fi holds over $1.37B in TVL and offers 2.99% APR, along with extra rewards like EigenLayer points.
Using YieldNest's ynLSDe is an easy way to earn rewards for restaking ETH. You can combine your LST yield, EigenLayer Points, and YieldNest Seeds, with a 3.38% APR.
Here’s a quick overview of these rewards:
Staking Yield
YieldNest offers 3.38% APR for staked assets, providing a steady reward from Ethereum staking. Staking helps keep the Ethereum network safe while earning income.
EigenLayer Restaked Points
Restaking through YieldNest or Ether.fi also earns you EigenLayer Points, which reward your contribution to keeping Ethereum secure with extra benefits.
YieldNest Seeds
YieldNest Seeds are bonus rewards for holding ynLSDe. They grow as you restake, giving you even more yield on your Ethereum assets.
OETH (Origin Ether) is a great choice for restaking in DeFi. It’s a special type of staking token that gives higher rewards and more flexibility than other options. With OETH, you can earn rewards without locking up your ETH, so you still have access to your funds whenever you need them. This makes it easier to earn passive income while also being able to use or trade your assets in other ways.
OETH automatically increases your earnings and offers higher returns compared to other staking tokens, all without extra costs.
As of writing, OETH has a 30-day trailing APY of 4.46%.
OETH is also fully backed by ETH, meaning you can always redeem your OETH for ETH with no risk of losing value. It stays stable thanks to its partnerships with trusted platforms like Curve and Origin’s ARM. These platforms also give you more ways to earn by restaking OETH.
Plus, OETH is protected from security risks through special technology which keeps the Ethereum network safe while you earn rewards. Whether you're new to staking or have experience, OETH makes it simple to restake and earn more without losing access to your funds.
Restaking through EigenLayer using YieldNest is a great way to increase your staking rewards. You can earn ETH staking yield, EigenLayer Points, and YieldNest Seeds, all while keeping your assets liquid. However, keep in mind that there are risks, including potential slashing if there’s a security issue with the network. Make sure to understand these risks and how restaking fits into your overall strategy before diving in.
To get started, visit YieldNest or click here to start maximizing your returns with Origin Ether (OETH) today.
EigenLayer is a protocol in the Ethereum ecosystem that enhances blockchain security by allowing users to restake their ETH. It helps secure new services and projects while offering additional rewards to stakers.
Restaking in EigenLayer lets users reuse their staked ETH to support new services, called Actively Validated Services (AVS). By doing this, stakers can earn extra rewards, with EigenLayer enabling secure participation.
EigenLayer is considered the most safe restaking platform due to its high TVL. Restaking on EigenLayer comes with some risks, such as exposing staked ETH to different rules, but it aims to maintain high pools security.
EigenLayer Points are rewards for users who participate in native restaking. You can earn them by restaking ETH through EigenLayer, helping boost blockchain security while earning extra rewards.
