Restaking has emerged as one of the most talked‑about primitives in crypto since Ethereum moved to proof‑of‑stake. Platforms like EigenLayer allow you to reuse your staked ETH (or liquid staking tokens) to secure additional protocols called Actively Validated Services (AVS), earning extra rewards in the process. The promise: double‑dip on yield without selling your principal. The reality: compounded slashing risk, liquidity trade‑offs, and new forms of protocol complexity.
In this comprehensive 2026 guide, we break down exactly how restaking works, analyze the risk‑reward profile of EigenLayer and major AVS, and provide a decision framework to help you decide if restaking belongs in your portfolio.
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📋 Table of Contents
- 1. What Is Restaking? (EigenLayer Primer)
- 2. AVS Rewards: How Extra Yield Is Generated
- 3. Compounded Risk: Slashing, Liquidity & Smart Contract Hazards
- 4. Risk‑Reward Matrix by AVS Type
- 5. Who Should (and Should Not) Restake?
- 6. How to Restake via EigenLayer (Step‑by‑Step Overview)
- 7. Alternatives to Restaking
- 8. The Future of Restaking: 2026 and Beyond
- 9. Frequently Asked Questions
What Is Restaking? (EigenLayer Primer)
Restaking, pioneered by EigenLayer, lets you take assets already staked (or liquid staking tokens like stETH, rETH) and “restake” them to provide economic security to additional protocols called Actively Validated Services (AVS). In return, you earn extra rewards – often paid in the AVS’s native token or ETH.
💡 How EigenLayer Works:
- Stakers deposit LSTs or native ETH into EigenLayer smart contracts.
- Operators run software for AVS and are delegated stake by stakers.
- AVS (e.g., oracles, bridges, sidechains) pay fees to operators, who pass a portion to stakers.
- Slashing conditions are enforced by EigenLayer: if an operator misbehaves, a portion of the restaked funds is slashed.
By early 2026, EigenLayer has onboarded dozens of AVS across Ethereum mainnet and L2s, with total value restaked (TVR) exceeding $15 billion. The appeal is obvious: earn staking rewards from Ethereum plus additional yield from one or more AVS.
Restaking Flow: From Staking to Double‑Dipping
Your stake secures multiple protocols simultaneously, generating layered rewards – but also layered slashing risk.
AVS Rewards: How Extra Yield Is Generated
AVS are diverse: data availability layers, oracles, cross‑chain bridges, coprocessors, and more. Each AVS pays operators for providing validation services, and those fees trickle down to stakers. Typical AVS yields in early 2026 range from 2% to 8% additional APY on top of native staking (currently ~3.5% for ETH).
| AVS Type | Typical Additional APY | Risk Profile | Example Protocols |
|---|---|---|---|
| Data Availability | 4–7% | Moderate‑High | EigenDA, Celestia (via restaking) |
| Oracles | 3–5% | Moderate | eOracle, RedStone |
| Bridges | 5–8% | High | Hyperlane, LayerZero AVS |
| Coprocessors | 2–4% | Low‑Moderate | Lagrange, Axiom |
| ZK‑Rollup Sequencers | 6–10% | Very High | Several L2s in testnet |
Rewards are typically paid in the AVS’s native token, adding price volatility to the equation. Some AVS also offer boosted yields for longer commitment periods.
Compounded Risk: Slashing, Liquidity & Smart Contract Hazards
⚠️ The “Double‑Dipping” Risk Multiplier
Restaking exposes your principal to multiple slashing conditions. If an operator fails in one AVS, you could lose funds from all restaked assets – even if Ethereum’s beacon chain is perfectly honest.
Slashing Risk: Not All AVS Are Equal
CompoundedEach AVS defines its own slashing conditions. Some are strict (e.g., missing multiple attestations), others more lenient. By delegating to an operator that runs several AVS, your stake is at risk of being slashed for any misbehavior in any of those services.
📊 Real‑world example (2025)
In September 2025, an AVS oracle malfunction caused a price feed delay. The operator was slashed 1% of delegated stake. Restakers who had chosen that operator for multiple AVS lost 1% across the board – a small but real loss.
Liquidity Risk: Lock‑Ups & Withdrawal Delays
Medium‑HighRestaked assets are locked in EigenLayer contracts. While some AVS allow “instant unstaking” (with a fee), most require a withdrawal period (7–14 days) during which you cannot access your funds or react to market conditions.
- EigenLayer core: 7‑day withdrawal delay for native ETH.
- AVS‑level delays: Some AVS add extra unbonding periods.
- Liquid restaking tokens (LRTs): Solutions like Ether.fi, Renzo offer tradable LRTs, but they trade at a discount during stress.
Smart Contract & Protocol Risk
HighEigenLayer itself is a complex set of smart contracts. While audited, the risk of a critical bug is non‑zero. Additionally, each AVS you restake to introduces its own smart contract risk. A single vulnerability in an AVS could drain funds.
🔒 Mitigation strategies
- Diversify across operators and AVS.
- Use LRTs that spread risk across many operators.
- Stay informed about AVS security audits.
Risk‑Reward Matrix by AVS Type
Not all restaking is created equal. The chart below visualizes approximate risk (volatility + slashing probability) vs. additional yield for major AVS categories.
Risk vs. Reward (2026 estimates)
Higher potential yield comes with proportionally higher slashing and smart contract risk.
Who Should (and Should Not) Restake?
Restaking is not for everyone. Use this decision matrix:
✅ Good candidates for restaking
- Long‑term ETH holders comfortable with 1‑2% principal risk.
- Sophisticated DeFi users who actively monitor operator performance.
- Those using LRTs to spread risk across many operators.
- Portfolios with diversified crypto assets (not over‑exposed to one protocol).
❌ Think twice if you…
- Need liquidity within 30 days.
- Are risk‑averse or new to crypto.
- Have a large portion of net worth in ETH.
- Don’t have time to research operators and AVS.
How to Restake via EigenLayer (Step‑by‑Step Overview)
Choose your deposit method
You can restake native ETH, liquid staking tokens (stETH, rETH, etc.), or use an LRT like eETH or rsETH. Each has different liquidity and slashing implications.
Select an operator
Operators run AVS software. Research their track record, which AVS they support, and their fee structure (typically 5‑15% of AVS rewards).
Delegate your stake
Via the EigenLayer app, delegate to your chosen operator. Your stake will be used to secure all AVS that operator participates in.
Monitor and claim rewards
Rewards accrue periodically. You can claim them or auto‑compound by re‑restaking. Keep an eye on operator performance and AVS slashing events.
Alternatives to Restaking
If the risks seem too high, consider these alternatives:
- Traditional staking: Stake ETH via Lido, Rocket Pool, or solo staking. Lower yield but minimal slashing risk.
- DeFi lending: Supply ETH to Aave or Compound for 2‑4% APY with no slashing.
- Liquid restaking tokens (LRTs): Buy LRTs like eETH, which diversify operator risk and can be sold on secondary markets.
- CeFi staking: Centralized exchanges offer simplified staking, often with insurance, but you give up custody.
The Future of Restaking: 2026 and Beyond
Restaking is still young. By late 2026, we expect:
- More sophisticated risk scoring for AVS and operators.
- Insurance products that cover slashing events (at a cost).
- Inter‑AVS competition driving yields down but security up.
- Regulatory clarity around restaking as a financial service.
EigenLayer’s vision of “programmable trust” could become the backbone of Web3 security, but only if the risk‑reward balance matures.
Final Verdict: Is Double‑Dipping Worth It?
Restaking through EigenLayer offers a genuine opportunity to earn additional yield on your ETH – potentially 5‑10% extra APY. But that extra return comes with real, compounded risks: slashing, liquidity constraints, and smart contract vulnerabilities. For long‑term holders who understand these risks and actively manage their operator selection, restaking can be a worthwhile addition. For passive or risk‑averse investors, the traditional staking route remains the safer choice.
As with any DeFi strategy, never invest more than you can afford to lose, and always diversify your risk across multiple protocols and asset classes.
🚀 Ready to dive deeper?
Explore our guides on DeFi yield optimization and Ethereum staking strategies to build a balanced portfolio.
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Frequently Asked Questions
Liquid staking gives you a tradable token representing your staked ETH (e.g., stETH). Restaking takes that staked ETH (or the LST) and uses it to secure additional protocols (AVS) for extra rewards. You can restake LSTs via EigenLayer.
In theory, yes – if an operator you delegate to is massively slashed across multiple AVS simultaneously, a large portion of your stake could be lost. However, slashing is usually capped per AVS (e.g., 1‑5%). The worst‑case scenario would be a coordinated exploit affecting many AVS, but that’s unlikely with current designs.
LRTs are tokens like eETH or rsETH that represent a diversified basket of restaked positions. They are issued by protocols like Ether.fi or Renzo and can be traded or used in DeFi. They reduce operator‑specific risk but introduce their own smart contract and de‑pegging risks.
Look at: track record (uptime, no past slashing), number and quality of AVS they support, fee percentage, and community reputation. EigenLayer’s app shows operator performance metrics. Some operators also provide detailed transparency reports.
Yes, EigenLayer has expanded to several L2s. Restaking on L2 can have lower gas fees, but you must bridge assets, adding extra steps and risk. L2‑native restaking is growing quickly in 2026.