EigenLayer is a new protocol that lets you ‘restake’ your existing crypto assets. This means you can use your staked Ether (stETH) or other liquid staking tokens to secure other networks. In return, you can earn extra rewards, including potential airdrops from EigenLayer itself and the services built on it.
What is EigenLayer?
Think of it like this: you’ve already staked your ETH to earn rewards. EigenLayer lets you take those staked tokens and use them again on other networks. These networks, called actively validated services (AVSs), need security. By providing that security through restaking, you help them and get paid for it.
Why Aim for EigenLayer Airdrops?
Airdrops are free tokens given to users. Many crypto projects do airdrops to reward early supporters and encourage adoption. EigenLayer is expected to have its own token, and the services built on it might also have their own airdrops. Getting in early could mean bigger rewards.
Step 1: Get Staked Ether (stETH)
To use EigenLayer, you typically need liquid staked ETH. The most common one is stETH from Lido. You can get stETH by staking your ETH with Lido. This process turns your ETH into stETH, which still earns staking rewards but can also be used in other DeFi applications.
Step 2: Deposit stETH into EigenLayer
Once you have stETH, you can go to the EigenLayer website. There, you’ll find an option to deposit your stETH into the EigenLayer protocol. This is the first step to making your staked assets available for restaking.
Step 3: Choose Actively Validated Services (AVSs)
After depositing stETH, you can select which AVSs you want to provide security for. These are the new services launching on EigenLayer. Each AVS has its own risk and reward profile. Some popular ones you might see include blockchain data indexers or oracle networks.
You can learn more about how staking works on different blockchains in our guide on Earn More Crypto: How to Stake Across Different Blockchains.
Step 4: Understand the Risks
Restaking is not without risk. If the AVS you are securing fails or acts maliciously, your staked assets could be slashed, meaning you lose some of your crypto. It’s important to research each AVS carefully before committing your funds.
Step 5: Look for Boosts and Points
EigenLayer and the AVSs on it often have point systems or other mechanisms to reward early users. Keeping your assets deposited and actively participating can earn you more points, which may translate to a larger airdrop later. Some projects might offer special bonuses if you use specific tokens or engage in certain activities.
Step 6: Be Patient
Airdrops are usually distributed after a project has launched its token or reached a certain milestone. This can take time. Continue to monitor the EigenLayer ecosystem and any specific AVSs you are using.
This process of using your assets across different networks is similar in concept to how you might move assets for other purposes, like using LayerZero swaps. Read our guide on Move Your Crypto Anywhere: A Simple Guide to LayerZero Swaps to understand cross chain asset movement.
Conclusion
EigenLayer offers a new way to earn potentially higher yields and qualify for airdrops by restaking your existing staked assets. By understanding the steps involved and the associated risks, you can position yourself to benefit from this innovative protocol.
