EigenLayer is a new way to use your staked Ether (ETH). It lets you put your ETH to work on other networks. This is called restaking. By restaking, you can earn more rewards.
What is EigenLayer?
Normally, you stake ETH to secure the Ethereum network. EigenLayer lets you take that staked ETH and use it again. You can use it to secure other applications and services that are built on top of Ethereum. These services are called ‘actively validated services’ or AVSs.
Think of it like this: your ETH is working two jobs. One job is securing Ethereum. The second job is helping to secure these new services.
Why Stake on EigenLayer?
The main reason is to earn extra yield. By providing your staked ETH to AVSs, you get rewarded by them. So, you earn the standard ETH staking rewards plus the rewards from the AVSs.
This also helps make the crypto ecosystem more secure. More staked assets mean these new services are safer for users.
How to Stake on EigenLayer: Step by Step
Here’s a simple guide to get started:
1. Get Staked ETH
You need to have ETH already staked. This means you’ve staked your ETH through a validator. You can do this yourself or use a staking service. The result is usually a liquid staking token like stETH (from Lido) or rETH (from Rocket Pool). EigenLayer works with these liquid staking tokens.
2. Go to the EigenLayer Website
Visit the official EigenLayer app. Make sure you are on the correct website to avoid scams.
3. Connect Your Wallet
Use a compatible crypto wallet like MetaMask. Connect it to the EigenLayer app.
4. Deposit Your Liquid Staking Tokens
Choose the liquid staking token you want to use (e.g., stETH). Enter the amount you want to deposit into EigenLayer.
5. Select an AVS to Delegate To
EigenLayer will show you a list of AVSs that need validation. You can choose one or more to delegate your restaked ETH to. Each AVS might offer different rewards. Do some research on the AVSs before choosing.
6. Confirm the Transaction
Approve the transaction in your wallet. You will have to pay gas fees for this. These fees are for putting your tokens into EigenLayer and delegating them.
What You Need to Know Before Staking
- Risk: Restaking comes with risks. If an AVS you delegate to fails, your staked ETH could be penalized (slashed). EigenLayer has its own slashing conditions.
- Smart Contracts: You are interacting with smart contracts. Always double check the contract addresses.
- Gas Fees: Transactions on Ethereum cost gas. Be aware of the fees when you deposit and withdraw. If you want to learn more about saving on gas, check out our guide to saving money on Polygon zkEVM.
- Withdrawals: Taking your ETH out of EigenLayer might take time. There are specific withdrawal periods.
EigenLayer offers a new way to boost your crypto earnings. By understanding the steps and risks, you can make informed decisions about restaking your ETH.
