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.

Hyperlane AVS introduces economic security to the Hyperlane protocol, addressing the limitations of its current Proof of Authority model where validators have no economic stake and face no repercussions for malicious actions. The AVS module uses a shared pool of stake to secure outbound messages from and between rollups, minimizing costs for establishing new validator networks. Key stakeholders include operators (EigenLayer operators validating outbound messages), stakers (EigenLayer stakers delegating their stake to operators), and applications (leveraging Hyperlane to secure cross-chain messages).

Hyperlane is the first universal and permissionless interoperability framework designed for the modular blockchain stack. It can be deployed on any blockchain environment—whether a layer 1, rollup, or app-chain, enabling seamless communication between chains where Hyperlane is implemented.

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 Hyperlane AVS 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.