EigenLayer, the biggest proponent and implementer of restaking, is starting to get rid of its training wheels. After briefly removing caps on staking with liquid staking tokens (LST), total value locked soared from $2.1 billion to 11.5 billion in ETH used for “restaking.”

At its core, restaking is about increasing capital efficiency. 

ETH is a tremendously widespread and liquid asset, which makes it ideal for bootstrapping new proof-of-stake (PoS) protocols. The deal is simple: New networks get significant security from day one, while ETH stakers get to earn extra on the same assets they already hold.

Restaking is quickly achieving buzzword status, and it’s largely the…

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