🔁 What Is EigenLayer & Restaking? (Simple Explanation)
EigenLayer is a protocol built on Ethereum that introduces a new idea called restaking.
In simple terms:
👉 It lets you reuse your staked ETH to secure more than one network.
🔐 What Is Restaking?
Normally, when you stake ETH, it only secures Ethereum.
With restaking, the same ETH can also help secure:
• New blockchains
• Oracles
• Data availability layers
• Other decentralized services
So instead of staking ETH once, you can extend its security to multiple systems.
⚙️ How EigenLayer Works
Users restake their ETH through EigenLayer.
This ETH then helps secure Actively Validated Services (AVSs).
If a service behaves badly, restaked ETH can be slashed — just like on Ethereum.
This creates strong security without launching a new token.
💡 Why EigenLayer Matters
• Improves security for new crypto projects
• Reduces need for new tokens
• Allows ETH to become the base security layer
• Creates new yield opportunities (with added risk)
⚠️ Important to Know
Restaking increases risk exposure.
More services = more chances of slashing.
Higher rewards come with higher responsibility.
🧠 In One Line
EigenLayer lets ETH secure the entire crypto ecosystem — not just Ethereum.
📌 Ethereum security, reused and expanded.
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