EigenLayer is an Ethereum-native restaking protocol that allows validators and token holders to repurpose their staked assets. It began with native ETH, ETH-based liquid staking tokens and token support now live, the platform also accepts many other ERC-20 assets such as BTC-backed tokens, selected stablecoins, and AVS-specific tokens. Operators, acting upon the delegation choices made by restakers, Curators or their partnered LST/LRT providers, use these positions to secure Actively Validated Services. This structure allows restakers the potential to earn additional rewards, in exchange for accepting the specific slashing conditions defined by each AVS.
Restaking provides a mechanism for institutional and crypto-native investors to enhance capital efficiency by utilizing staked ETH or Liquid Staking Tokens. This strategy offers the potential for supplementary rewards beyond traditional staking by securing new decentralized services. It is essential for investors to understand that this comes with a corresponding and significant increase in risk, as their assets are exposed to new and additional slashing conditions.
EigenLayer is a protocol on Ethereum that allows users to re-purpose their staked ETH or Liquid Staking Tokens (LSTs) to help secure additional decentralized applications, known as Actively Validated Services (AVSs). This creates a 'pooled security' model, enabling AVSs to leverage the security of Ethereum's established staked capital.
When selecting an EigenLayer operator, it is crucial that you conduct your own due diligence. You should carefully evaluate an operator’s operational history, security practices, fee structures, and the specific AVSs they secure. These factors directly impact your potential rewards and, critically, your exposure to slashing risk.
Restaking involves delegating your staked ETH, compatibe ERC-20 tokens or LSTs to an EigenLayer operator to secure AVSs, which provides the potential to earn supplementary rewards beyond standard staking rewards
The primary risk is that restaking introduces additional slashing conditions from each AVS you help secure. This means your staked assets could be partially or fully forfeited if the operator fails its duties for any of those services. Consequently, the overall slashing risk for restaked assets is greater than that of standard ETH staking, as you are exposed to risks from multiple sources simultaneously.
Finoa Consensus Services acts solely as an institutional-grade infrastructure provider. We do not determine restaking strategy or select which services to secure.
These critical decisions are managed by expert partners, such as Liquid Restaking Token (LRT) providers. They define the allocation strategy, assess risk, and choose the AVSs. When using a partner's service, you are entrusting them with these strategic choices, so your due diligence should focus on them.
Actively Validated Services (AVSs) are the specific protocols, applications, and services that utilize the pooled security provided by EigenLayer's restaking protocol.
These are the services that restakers agree to help secure, thereby becoming subject to their unique slashing conditions in exchange for the potential for supplementary rewards.
The withdrawal process for restaked assets is longer than for standard ETH staking. EigenLayer's protocol adds a mandatory 7-day security escrow period on top of Ethereum's standard validator exit time.
Consequently, the total unbonding and withdrawal process typically takes approximately 14 days, though the exact duration can fluctuate with network conditions.
