EigenLayer Definition

EigenLayer is an Ethereum-based protocol that lets people reuse staked Ether to help secure other applications. This idea is known as restaking, and it creates a shared pool of security that new projects can tap into instead of building their own validator sets from scratch. On EigenLayer, these add-on applications are called actively validated services, or AVSs. 

Origins

EigenLayer was founded by Sreeram Kannan in 2021, with the protocol focused on building a marketplace where stakers, operators, and protocols meet to trade security for rewards.

Purpose and overview

The protocol’s goal is to make it easier for developers to launch services that rely on strong economic security. By drawing on Ethereum’s proof-of-stake capital through restaking, projects can plug into a ready-made trust layer rather than recruit and incentivize their own validators. In short, EigenLayer aims to lower the cost of bootstrapping security while giving stakers extra ways to earn.

How restaking works

Restaking means taking ETH that is already staked on Ethereum and committing it again to secure other protocols. EigenLayer supports two paths:

1. native restaking, where a user who already runs a validator opts their stake into EigenLayer, and
2. LST restaking, where a user deposits a liquid staking token that represents their staked ETH. Both routes add to the same shared security pool used by AVSs.

Roles in the system

There are three main groups involved:

• Restakers supply the economic backing by opting in their staked ETH or LSTs.
• Operators run the infrastructure that actually validates AVSs. A restaker can delegate to an operator instead of running the hardware themselves.
• AVSs are the services that buy pooled security. Examples include bridges, oracles, and other middleware that benefit from Ethereum-grade assurances.

Asset management with EigenPod

When someone starts restaking, the protocol creates an EigenPod smart contract tied to their wallet. This acts like a management hub for deposits, delegation, and withdrawals. EigenLayer tracks contributions over time with internal accounting, so restakers can see how much work their assets are doing.

Liquid restaking and LRTs

Restaking can stay flexible. Ledger’s primer describes setups where users who deposit ETH or liquid staking tokens receive liquid restaking tokens (LRTs), which are receipts that keep funds usable elsewhere in DeFi while the underlying stake continues to secure AVSs. The basic idea mirrors liquid staking, but for restaking.

Design idea: modular security

EigenLayer is often framed as a modular security layer that sits alongside the base chain. Instead of changing Ethereum itself, projects add new functionality on a separate track and connect to the shared security pool. That modular approach lets teams experiment and scale features like privacy or data services without touching the core protocol.

Incentives and slashing

Operators and restakers earn rewards from the AVSs they support. The flip side is slashing. If an operator fails to follow an AVS’s rules, some restaked collateral can be cut. Choosing reliable operators and AVSs matters because the same capital is now securing more than one set of duties.

Notable use cases

AVSs can cover a wide range of middleware tasks. Common examples include cross-chain bridges, oracle networks, and other services that need honest validation but prefer to rent security rather than create it. This lets teams ship faster while leaning on Ethereum-aligned incentives.