Bitaigen Research We delve into the core concept of restaking in this article and systematically review the three most influential projects within the Ethereum ecosystem. By outlining the underlying mechanisms, technical implementations, and ecological significance, readers can grasp the potential value and risks of this niche. If you wish to understand why restaking is attracting attention from institutions and decentralized‑finance researchers, keep reading.
A 100% Surge in One Week! Etherfi Rockets Past $6, Setting an All‑Time High
Restaking refers to the practice of taking liquid staking tokens that were already obtained by staking and staking them again to earn additional yield. This article surveys the three leading restaking projects on Ethereum: EigenLayer, Etherfi, and Renzo.
The total value locked (TVL) across the sector now exceeds $3 billion. Etherfi (ticker $ETHFI), leveraging its leading position in the liquid‑restaking track, launched on Binance in mid‑March. (U.S. users should access the listing through Binance.US.) During the initial listing period, $ETHFI peaked at roughly $5.30, later fluctuating between $2 – $4. Recently the token surged again; at the time of writing on the 27th, it briefly touched $6.43, an all‑time high, representing a 104.66 % weekly gain. Etherfi also kicked off a second‑quarter airdrop‑points campaign, which may be a key driver of the price movement.
Restaking projects are not as immediately understandable to the general public as Solana meme coins or AI tokens, yet they have already been regarded by certain institutions and DeFi analysts as a hot theme for the current bull market. A well‑known DeFi researcher mentioned this sector in the “DeFi Degen Bull Market Guide” published at the end of last year. In recent months the Ethereum restaking landscape has experienced explosive growth. Below we introduce the three projects with the largest locked value on Ethereum, helping you quickly identify the industry leaders.
EigenLayer
After Ethereum’s transition from proof‑of‑work (PoW) to proof‑of‑stake (PoS), liquid staking tokens (LSTs) became an important DeFi avenue, with projects such as Lido and Rocket Pool offering base‑staking services. For example, a user who stakes ETH through Lido receives stETH and accrues a regular annualized interest.
EigenLayer innovatively introduced the concept of restaking, allowing holders of stETH, rETH (Rocket Pool’s token), or native ETH to stake those assets again on its platform. The project aims to address challenges such as the decentralization of blockchain security and the high difficulty of building consensus networks, while also fostering the development of Active Validator Services (AVS).
EigenLayer’s core idea is to pool the security of large public blockchains like Ethereum and extend that security to other decentralized applications (dApps), thereby reducing the cost and risk of launching new PoS consensus layers. To incentivize participation, the platform has rolled out a points system and hints at a future token airdrop, although no specific token issuance or airdrop schedule has been announced.
Binance Research detailed EigenLayer’s operating model in a report (see diagram below):
According to CoinDesk, the development team behind EigenLayer, Eigen Labs, secured a $100 million financing round led by venture firm a16z. Data from DeFiLlama indicates that EigenLayer’s TVL has reached $12.1 billion, with rapid growth since February of this year.
Etherfi ($ETHFI)
Following EigenLayer’s creation of the restaking paradigm, several DeFi platforms have built around the concept, and Etherfi has emerged as the leader in the Liquidity Restaking Track (LRT).
The operation of liquidity restaking is straightforward: users deposit native ETH or tokens such as stETH into Etherfi and receive eETH (the LRT token) in return, along with Etherfi loyalty points and EigenLayer points. To exit, a user simply swaps eETH back for ETH or stETH, providing high liquidity.
This model combines dual‑yield opportunities with a leverage effect, attracting a large number of ETH holders. Tron founder Sun Yuchen deposited 20,000 ETH before Etherfi’s first airdrop, receiving roughly 3.5 million tokens; BitMEX founder Arthur Hayes invested through his family office fund Maelstrom, publicly praising the project’s potential.
Other Competing Projects: Renzo, Puffer, and Kelp DAO
Beyond Etherfi, several other restaking initiatives are vying for market share. DeFiLlama data ranks the following three projects among the top in locked value:
- Renzo – Approximately $1.7 billion locked, ranking second in the restaking market. It supports multi‑chain restaking across Ethereum, Arbitrum, Blast, Binance Smart Chain (BSC) and others. In January 2023 it closed a $3 million funding round and later received investment from Binance Labs.
- Puffer – Around $1.3 billion locked, holding third place. Like Renzo, it is backed by Binance Labs. Its native liquid staking token nLRT (pufETH) grants holders both PoS validator rewards and restaking rewards, distinguishing it from projects that only provide token‑related points.
- Kelp DAO – Roughly $700 million locked, placing fourth. As a multi‑chain liquid staking platform, its founders previously built the liquid staking project Stader Labs. Kelp DAO distributes tokens via an airdrop mechanism that rewards participants based on the amount restaked and the duration of staking.
Binance: New Technology Brings New Risks
Binance Research notes that, while restaking is viewed as a potentially transformative layer of blockchain infrastructure, the emergence of new technologies and new enterprises inevitably carries risk. In a fast‑moving market, unexpected events are unavoidable, and participants should carefully evaluate potential hazards.
As more AVS are expected to launch formally this year, penalty conditions (slashing mechanisms) will become increasingly diverse, making the choice of a suitable platform for restaking especially important. The research team also observed that liquid‑restaking projects can handle large volumes of ETH (or LSTs) and delegate them to multiple validators, suggesting that these projects could become pivotal players in Ethereum’s decentralized governance.
The above content answers the question “What is restaking? A review of the three leading restaking projects on Ethereum.” For deeper analyses of restaking, please follow other articles from Bitaigen.
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