Binance Research Report: Exploring the Restaking Landscape

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Introduction

The restaking market has gained significant traction in 2024, transitioning from an emerging narrative to an innovative reality. Ethereum restaking currently dominates this space, largely due to EigenLayer's pivotal role within the Ethereum ecosystem.

While EigenLayer remains the most mature project in restaking, other initiatives are expanding the concept across multiple chains—including Solana (Picasso), Bitcoin (Babylon), and Cosmos. This report delves into the fundamentals of restaking, key projects, and liquidity restaking protocols (LRTs).

Restaking Fundamentals

What Is Staking?

At its core, staking involves locking native tokens to secure a blockchain network. In Proof-of-Stake (PoS) systems, validators:

Staking enhances security by making attacks economically prohibitive (e.g., controlling 51% of staked tokens).

How Does Restaking Work?

Restaking enables users to reuse staked assets to secure additional protocols beyond their native chain. For example:

Key Problems Restaking Solves


Key Projects

EigenLayer

Overview:
EigenLayer aggregates Ethereum’s staked ETH to provide "security-as-a-service" for AVSs like DA layers, oracles, and bridges.

Mechanics:

  1. Restakers: Delegate LSTs or native ETH to secure AVSs.
  2. Node Operators: Run EigenLayer software, earning fees from AVSs and Ethereum.
  3. AVSs: Services that rent security from EigenLayer (e.g., EigenDA).

Milestones:

TVL: Surpassed $7.5B, with 2.6M ETH restaked.

Babylon (Bitcoin Restaking)

Picasso (Solana Restaking)


Liquidity Restaking Protocols

Top LRT Platforms

| Protocol | LRT | TVL | Supported Assets |
|-------------|---------|-----------|------------------------|
| Ether.fi | eETH | $1.2B | Native ETH |
| Puffer | pufETH | $1B | stETH |
| Kelp DAO| rsETH | $490M | ETH, stETH, ETHx |
| Renzo | ezETH | $350M | ETH, stETH, wBETH |

How LRTs Work:

  1. Users deposit ETH/LSTs into the protocol.
  2. Receive LRTs (e.g., eETH) representing restaked positions.
  3. Use LRTs in DeFi for extra yield.

FAQs

1. What are the risks of restaking?

2. How do AVSs differ from traditional dApps?

AVSs are modular services (e.g., DA layers) that rent security from restakers rather than bootstrap their own.

3. Which chains support restaking beyond Ethereum?

👉 Explore more about restaking strategies


Conclusion

Restaking represents a paradigm shift in blockchain security, offering capital efficiency and shared security. With EigenLayer leading and LRTs gaining traction, the ecosystem is poised for rapid evolution.

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