Eigenlayer ETH Restaking

EigenLayer is an Ethereum-based protocol that introduces restaking. It allows users to reuse their ETH on the consensus layer, securing additional protocols and applications without additional collateral. Users can stake ETH directly or with a liquid staking token (LST) and opt in to EigenLayer smart contracts to restake their ETH or LST, extend the network's security, and enable the opportunity to earn additional rewards.

This guide will show you how to stake & restake with EigenLayer native restaking via the Blockdaemon app.

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If you're staking via our staking API or want an overview of the process, watch our video guide.

To learn more about EigenLayer, visit our dedicated page here.

Prerequisites

Before you start, please note:

Restaking requires depositing ETH.
If you have already staked, you must exit your ETH validators, collect your ETH collateral, and then re-stake. Restaking needs your Ethereum validator's withdrawal credentials set to your Eigenpod address.
Changing withdrawal credentials on an existing validator is not possible.

Overview of Process

Stake ETH

Step 1: Access Ethereum Staking in Blockdaemon App

Go to Staking > Protocols menu.
Select Stake from the Ethereum protocol.

Click on Start Staking within the Staking option.

Step 2: Connect Your Wallet

Click Connect Wallet.

Choose the desired Network from the available options.
Connect your wallet from the available wallet options.
1. This action takes you to your wallet account and dashboard, where you'll be prompted to connect to the Blockdaemon app.
Your wallet information will be displayed at the top of the page along with details of your Staking Plan.

Step 3: (Re)Stake ETH

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Ensure you have enough balance to cover the gas fees.

Review all staking details before proceeding as addresses cannot be changed after validators have launched.

Specify the staking amount using the slider.
Enable the EigenLayer restaking toggle.
1. You can have only 1 withdrawal address for all validators when restaking with EigenLayer, as this address must be set to your EigenPod Address.
2. If your connected wallet address already has an EigenPod Smart Contract address, it will be populated as your withdrawal address. If not, we will create a new EigenPod address for you.
Click Stake to proceed.

Verify the staking details:
- Review and confirm all the details. Click the Confirm button.
- If you don't have an EigenPod Address, we'll create one for your connected wallet. Click the Confirm button.

Step 4: Creating EigenPod

If you don't have an EigenPod address linked to your wallet, we'll create one for you. If you already have an EigenPod address, go to Step 5: Confirm the Transaction.
Confirm and sign the transaction in your wallet to create your EigenPod.

Your transaction is now broadcast and confirmed on the network.

Step 5: Confirm the Transaction

Preparing the validators for deployment.

Confirm and sign the transaction in your wallet.

Your transaction is now broadcast and confirmed on the network.

Once the network confirms the transaction, your ETH validator(s) are deposited. You can view them in the Ethereum Staking Dashboard. It may take 1-3 days for the validators to become active and start earning rewards, depending on the protocol activation queue.

Activate Restaked Collateral

Once your validator has activated the protocol, go to the EigenLayer app at Mainnet or Holesky testnet.
Connect your wallet. You'll see your EigenPod address and the amount of ETH from your validators under Awaiting Restake.
Click the Restake button to transfer your collateral into the restaking system. The system will fetch the necessary proof about your restaking validators.

This process may take a few minutes depending on the number of validators.

Once generated, the EigenLayer protocol will generate another transaction for you to sign.
1. Transactions are currently processed in batches of up to 25 validators per transaction, so you might be asked to sign several similar transactions.
Your collateral is active in the EigenLayer system and will start earning Restaked Points.
You can see the number of your restaked ETH under Beacon Chain Restaked.

Delegate to Blockdaemon

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This feature is available on both Testnet and Mainnet starting April 9th, 2024.

Delegating to an operator is necessary only once per wallet address. If you've already delegated any token before, additional collateral put into EigenLayer will be delegated to the same selected operator.

Go to the EigenLayer app under Operator, then select Blockdaemon on Holesky testnet or on Mainnet.
On the right-hand side, you'll see the Registered AVSs that Blockdaemon currently supports, which will determine your restaking risks and rewards once these mechanisms go live.
Click the Delegate button to choose your node operator and sign the corresponding transaction.
You will see the delegating progress message. Once completed, your delegated balance reflects all your available restaked funds.

Initiating an Undelegate transaction will queue a withdrawal (Unstake) of your funds. The Undelegate and Queue Withdrawal transactions are combined due to the security architecture of EigenLayer smart contracts. For more details, refer to the EigenLayer documentation.

Exit Restaking Process

If you want to exit your Blockdaemon validator that is linked to an EigenPod smart contract at the withdrawal address, you can exit via the Blockdaemon app.

Once the validator completes the exit queue process, the staked ETH will go to the EigenPod to enable you to unstaking. The duration of the unbonding period varies based on the parameters of the supported AVSs. Currently, there is an escrow period of 7 days on EigenLayer Mainnet before you can completely withdraw your funds.

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Please refer to the EigenLayer documentation for more details on full (collateral) and partial (rewards) withdrawals.

Eigenlayer ETH Restaking

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Prerequisites

Overview of Process

Stake ETH