Want to earn more from your crypto in 2025? Restaking is a powerful DeFi strategy that lets you reuse your staked assets—like ETH on Ethereum—to secure other networks and boost your rewards. Instead of just earning 4-5% from staking, you could make up to 15% or more with platforms like EigenLayer or Ether.fi. In this guide, we’ll break down what restaking is, how it works, its benefits and risks, and how to get started. Let’s dive in and learn how to maximize your crypto yields with restaking!
What is Restaking ?
Restaking is a DeFi strategy where you take cryptocurrencies you’ve already staked—like ETH on Ethereum—and reuse them with other protocols to earn extra rewards while securing multiple networks. For example, instead of leaving your ETH staked on Ethereum for a 4-5% annual return, you can use platforms like EigenLayer to boost your earnings (up to 15% or more) by supporting services like oracles or blockchain bridges. This all happens through smart contracts, with no banks or intermediaries involved.
What’s the Difference Between Staking and Restaking?
Staking and restaking are similar but have key differences:
- Staking: You lock up your crypto (e.g., 32 ETH on Ethereum) to validate transactions on one blockchain and earn rewards (around 4-5% per year). Your funds might be locked for a period (e.g., 27 days on Ethereum to withdraw).
- Restaking: You reuse your staked crypto (or its liquid equivalents) to secure additional protocols, multiplying your rewards (up to 15% or more). It offers more flexibility with liquid restaking tokens (LRTs, like eETH), but also increases risks.
How Does Restaking Work?
Restaking is a technical DeFi advancement. Here’s a simple breakdown:
- Smart Contracts: Platforms like EigenLayer manage your staking through smart contracts on blockchains like Ethereum. You deposit your staked crypto (e.g., ETH or stETH from Lido), and it’s used to secure other networks (like bridges or oracles). These contracts calculate your rewards and apply penalties (slashing) if something goes wrong.
- Multi-Network Validation: Your crypto secures Ethereum and other services at the same time, with validators running extra software to handle both.
- Rewards and Risks: You earn base rewards (like 4-5% from Ethereum) plus bonuses from other protocols (up to 10% or more). But if a protocol fails (e.g., a validator makes a mistake), you risk losing part of your stake (slashing).
Benefits and Risks of Restaking
Restaking lets you reuse your staked crypto (like ETH) across multiple networks to earn extra rewards, but it comes with both opportunities and challenges. Here’s a breakdown to help you understand what’s at stake:
Benefits of Restaking
- More Earnings: Restaking can double or triple your profits compared to regular staking. For example, staking ETH might earn you 3-5% a year, but restaking on platforms like EigenLayer could get you 10-15%.
- Use Less Crypto: You don’t need extra tokens for each network—one stake works for many, so your crypto does more without locking up more funds.
- Stay Flexible: With restaking, you get liquid restaking tokens (LRTs) that let you earn rewards while using your crypto in other apps, like trading or lending. Over $14.2 billion is locked in LRTs in 2025, showing their popularity.
- Help the Crypto World: Restaking supports important services like bridges (connecting blockchains) and oracles (bringing real-world data to crypto), making the whole system stronger.
Risks of Restaking
- Losing Money: If something goes wrong on the networks, you might lose more—1-2% with regular staking, but up to 5-10% with restaking.
- More Problems: Using many networks means more chances for hacks or bugs. For example, a $320 million hack hit Wormhole in 2022, showing how risky it can be.
- Big Players Win: Restaking might let big users take over, making things less fair. Ethereum’s Vitalik Buterin warned about this in 2023.
- Price Swings: If crypto prices drop—like ETH falling 30% in 2022—your earnings can shrink. Using stablecoins (tokens tied to USD) can help keep things steady.
What Is Liquid Restaking ?
Liquid restaking takes restaking a step further by keeping your assets flexible:
- Process: Stake ETH on Lido to get stETH (around 4% APY), then restake stETH on a platform like Ether.fi to receive eETH—a liquid restaking token (LRT)—earning an extra 10% or more. You can trade or lend eETH on DeFi platforms like Uniswap without unstaking.
- Mechanics: Smart contracts issue LRTs to represent your restaked position—e.g., Ether.fi’s contract tracks your stETH, assigns it to other services, and mints eETH you can use flexibly.
- Advantages: Combines staking’s security with DeFi’s flexibility—e.g., $500 in stETH restaked could earn $75+ annually while staying liquid.
- Risks: Adds slashing risks and smart contract vulnerabilities—e.g., a faulty service could devalue your eETH.
Top DeFi Restaking Platforms on Ethereum
Here’s a simple overview of leading restaking platforms, based on their popularity and features:
| Platform | Key Features | Why It’s Great |
|---|---|---|
| EigenLayer | Supports native (32 ETH) and liquid restaking (stETH) with up to 15%+ APY. Enables additional blockchain services. | Pioneered restaking and is a top choice for advanced users. |
| Ether.fi | Specializes in liquid restaking, converting ETH or stETH into eETH with 10-15%+ APY. | User-friendly and ideal for liquidity in DeFi. |
| Renzo | Offers ezETH (a liquid restaking token) with 12%+ APY, supporting Ethereum and other chains. | Grew quickly and is beginner-friendly. |
| Karak | Supports multi-asset restaking (ETH, stablecoins) with 10-15% APY. | Focuses on cross-chain flexibility. |
| Puffer Finance | Provides pufETH (a liquid restaking token) with 12%+ APY and anti-slashing protection. | Prioritizes security for users. |
How to Get Started with Restaking
Ready to try restaking? Follow this simple guide:
- Choose a Wallet: Use MetaMask (metamask.io) or Rabby—both are free, multi-chain wallets ready for restaking.
- Get Assets: Buy ETH on an exchange like Coinbase. Stake it first (e.g., on Lido for stETH) for liquid restaking, or hold 32 ETH for native staking.
- Pick a Platform:
- For native restaking: Use EigenLayer and run a validator node or deploy an EigenPod.
- For liquid restaking: Use Ether.fi, deposit stETH, and get eETH.
- Stake: Connect your wallet to the platform’s website (e.g., ether.fi), approve the transactions—gas fees vary (e.g., $5 on Ethereum, $0.01 on Base).
- Monitor: Track your yields and risks on tools like DeBank.
- Optimize: Use LRTs in DeFi—swap eETH on Uniswap or lend it on Aave.
Tip for Beginners: Start with a small amount, like $100 in stETH, to test the waters.
Restaking is a powerful way to increase your crypto earnings in DeFi, letting you layer rewards on top of staked assets with platforms like EigenLayer and Ether.fi. You can earn higher returns (up to 15%+), keep your assets liquid with tokens like eETH, and support multiple networks—but it comes with risks like slashing and complexity. Whether you use ETH or stablecoins, restaking is a smart strategy for crypto enthusiasts. Start small, stay cautious, and maximize your staking potential in 2025!