Restaking is the practice of taking crypto that has already been staked to secure a blockchain, usually ether on Ethereum, and committing that same stake a second time to help secure additional protocols, in exchange for extra yield and extra risk. According to the comprehensive guide, this concept was introduced by a protocol called EigenLayer in 2023 and had grown into one of the largest systems in all of decentralized finance by 2026, with tens of billions of dollars committed to it. The core idea allows Ethereum stakers to secure additional protocols with the same capital, creating extra yield alongside added risk. This system works through three key roles: restakers who supply the capital, operators who run the technical software, and Actively Validated Services (AVSs) that need security and pay rewards to the restakers.
Real restaking yield in 2026 typically lands around 4-7% annually, combining roughly 3-4% from base Ethereum staking with 1-2% from AVS rewards, plus variable token incentives. As reported in the guide, a worked example shows that if you hold 10 ether and deposit it into a liquid restaking protocol like ether.fi, you receive 10 units of LRT that begin stacking three layers of yield. The first layer is base Ethereum staking at 3-4%, the second is AVS rewards at 1-2%, and the third is token incentives from protocols. Some users push further with a technique called looping, where depositing LRT as collateral on lending protocols allows borrowing more ether to buy more LRT and repeat, potentially achieving 12-20% headline returns.
For most users, liquid restaking is how they participate, as reported in the guide. The leading protocols issue liquid restaking tokens (LRTs): eETH from ether.fi, ezETH from Renzo, rsETH from Kelp DAO, and pufETH from Puffer. These protocols hold the majority of all restaked ether, with EigenLayer holding roughly 94% of the restaking market. The word 'liquid' is crucial - LRTs are freely tradeable tokens that can be held, sold, or used elsewhere in decentralized finance while earning yield, unlike normal restaking positions that are locked and illiquid. This composability turned restaking from a niche activity into core DeFi infrastructure.
Restaking adds yield by adding risk through multiple layers of exposure. According to the guide, the most obvious risk is slashing, where by opting in to secure additional services, you accept additional ways to be penalized, with poorly run operators potentially losing funds through negligence. Smart-contract risk is stacked in layers as capital passes through Ethereum's staking contracts, EigenLayer's contracts, and liquid restaking protocol contracts. The most consequential risk is concentration risk, as shown in April 2026 when Kelp DAO suffered an exploit of around ₹300 crore that triggered roughly ₹5,500 crore in withdrawals across the entire restaking sector. Withdrawals are not instant, requiring several days, and during market stress, LRTs can trade below the value of backing ether.
By 2026, restaking was no longer limited to Ethereum, with alternatives emerging as competition. As reported in the guide, Symbiotic positions itself as a permissionless, modular competitor accepting various tokens as restakable collateral, while Karak supports stablecoins, wrapped Bitcoin, and liquidity-provider tokens. Babylon brought the restaking idea to Bitcoin, allowing Bitcoin holders to provide security to other networks. EigenLayer itself has expanded beyond yield into data availability and verifiable compute services, describing itself as a decentralized cloud built on rented trust. The protocol's flagship service, EigenDA, remains the single largest consumer of restaked security, helping rollups store transaction data cheaply.
