Restaking is a mechanism that reuses the locked economic security of Ethereum to enhance the security of smaller networks and applications. Restaking allows validators to opt in by assigning their credentials to smart contracts on the Ethereum blockchain, thereby earning additional revenue for securing chosen modules. This process broadens the range of blockchain applications that can benefit from pooled security, as validators validate various modules including consensus protocols, data availability layers, virtual machines, and bridges.

There are two types of restaking, native restaking where participation requires running an Ethereum validator node and changing withdrawal credentials to EigenLayer's smart contracts, and liquid restaking where users can deposit liquid staking tokens and delegate assets to a particular Operator. Restaking streamlines the bootstrapping security process for new applications, making it more cost-effective, efficient, and scalable.

Operators, who can be individuals or organizations, play an active role in the EigenLayer protocol. By registering within EigenLayer, ETH stakers can delegate their staked assets, whether native ETH or LSTs. The Operators then opt-in to provide a variety of services to AVSs, enhancing the overall security and networks’ functionality.

The ARPA Network AVS is part of EigenLayer's architecture, featuring the BLS Threshold Signature Scheme (BLS-TSS) Network. This decentralized network comprises dynamic groups of nodes that securely generate BLS threshold signatures, used in Randcast for reliable random number generation across multiple blockchains. The ARPA Network integrates EigenLayer's dual staking model, using both ARPA and ETH tokens to enhance security through Ethereum's shared security framework. This setup reduces reliance on centralized authorities, improves fault tolerance and scalability, and ensures higher task execution reliability, benefiting Randcast users with superior service quality.

You can restake multiple LSTs to earn a yield, delegating tokens to Operators of your choice.

We recommend using a Ledger Hardware Wallet to keep full control over your funds. To nominate your tokens, you should ensure you have your ETH or LSTs on MetaMask or Rabby Wallet and follow the steps below:

Step 1: Open the EigenLayer App and connect your wallet.

Step 2: Proceed to the Restake tab.

Step 3: Select the asset to restake.

Step 4: Input the desired amount and click “Deposit”.

Step 5: Approve and confirm the transaction in your wallet.

​​Step 6: Continue to the AVS tab.

Step 7: Select the ARPA Network to restake.

Step 8: Scroll down to the Operators section and choose one of the options.

Step 9: Click “Delegate” to deposit tokens to the Operator.

Step 10: Token Approval. Once the token approval transaction is confirmed, you will be prompted to confirm the deposit transaction.

Step 11: Confirm the deposit transaction in your wallet.

Restaking presents exciting opportunities for users to increase their yield, but it also comes with risks that must be carefully managed. Users must navigate the diverse range of AVSs launching on EigenLayer, each with its own slashing rules and risk profiles.

Slashing risk: These risks encompass the potential for slashing, which occurs when validators violate restaking terms, leading to penalties and potential losses. This penalty could impact restakers who entrust assets to Operators. Like any staking activity on Ethereum, the ETH you commit is subject to network regulations, with breaches potentially resulting in partial or total token losses. Slashing is not yet implemented on EigenLayer, therefore, it is a future risk. However, it is going to be introduced later this year.

Systemic risk: Vulnerabilities associated with restaking include operation concentration and the potential impact on Ethereum's security. The interconnectedness of AVSs within EigenLayer can amplify risks, as security issues with one AVS may affect others, leading to systemic failures.