Crypto

ETH holders are locking up billions in restaking—hoping to boost rewards. But is the risk worth it? 

By Mukesh Prajapati

June 30, 2025

What Is Restaking Anyway? 

Restaking allows users to reuse staked ETH to secure other networks—earning layered rewards. 

Enter EigenLayer 

EigenLayer is the top restaking protocol, attracting over $15B in ETH by allowing modular security. 

Why Are People Restaking? 

Users seek higher rewards than regular staking by helping new projects with extra security. 

The Big Risk Factor 

Restaking increases risk: if the protocols you support fail, your ETH could be slashed. 

How Restaking Works (Simply) 

You stake ETH as usual, then “restake” it on EigenLayer to validate other networks or services. 

Institutional Eyes on Restaking 

VCs and DAOs are eyeing restaking as a way to multiply yield and bootstrap new DeFi ecosystems. 

Liquid Restaking Options 

Like with Lido or Rocket Pool, users can restake and still get liquid tokens like eETH or rsETH. 

Should You Restake Your ETH? 

If you’re risk-tolerant and want to boost yield, restaking is attractive—but not for everyone. 

DYOR Before You Restake 

Do Your Own Research before you restake.