Restaking
Re-using staked ETH to secure other protocols.
Your staked ETH already secures Ethereum and earns 3-4% APY. EigenLayer lets you 'rent it out' as security for other protocols (oracles, bridges, data availability networks). In return you get extra rewards (5-15% extra APY). Great on paper, but risk: if the protocol you restake to misbehaves, your ETH gets slashed. Hot topic in 2024-25. EigenLayer holds $15B+ TVL.
In plain words
Your staked ETH already secures Ethereum and earns 3-4% per year. EigenLayer lets you 'rent it out' on top to other protocols (oracles, bridges) and earn an extra 5-15% APY. Sounds great, but risk is higher: if the protocol you restake to misbehaves, your ETH gets partially slashed. EigenLayer is the hot topic of 2024-25 with $15B+ TVL.
Example
EigenLayer 2024: TVL from 0 to $15B+ in a year, EIGEN airdrop for restakers.
Also known as: eigenlayer