A Step-by-Step Guide: Eigen Layer Restaking

Eigen Layer restaking is now live!

EigenLayer has successfully launched Stage 1 of their Mainnet. This is a significant milestone, and P2P.org is happy to be a part of this historical moment as one of the EigenLayer community multisig members!

Restaking doesn't generate any rewards right now since the launch of Actively Validated Services (AVS) generating these rewards is planned for a later stage.

However, EigenLayer highlights that restaking early provides the earliest possible access to AVS rewards, as some services may cap their initial restake amounts.

EigenLayer was launched with initial usage limits of 3200 for stETH, rETH, cbETH, and 9600 ETH for native staking. The stETH cap of 3200 ETH was reached within the first hour, with rETH and cbETH following shortly afterward! The team promises to increase limits progressively over the coming weeks and months.

Although all liquid staking token (LST) options have already reached their caps, native stakers still have time to become a part of early adopters.

Restaking with P2P.org

You can restake your ETH on the EigenLayer network using the P2P.org staking dApp. Our dApp, which is non-custodial, supports the option to customize validator withdrawal addresses—a fundamental necessity for directly restaking to an EigenPod. Suppose you don't already have an EigenPod address. In that case, we are excited to announce a new feature where users can generate their own EigenPod address directly within the staking process in our dApp!

Below, we have prepared a step-by-step guide on how to do this. However, before restaking, please take note:

How to restake if you don't already have an Eigenpod address:

1. First, visit our Ethereum staking dApp at eth.p2p.org and connect a Web3 wallet.

2. After connecting to the Web3 wallet, enter in the field the amount of ETH you want to stake, for example, 32 ETH. Under the field, you will see option Eigenlayer restaking with the checkbox:

3. Activate the checkbox (blue = activated). After you activate the checkbox, note that the button "Continue" below the screen switched to "Create Eigenpod address":

4. Now, we need to create an Eigenpod address by pressing the following button. The creation of an Eigenpod address happens by calling the Eigenlayer smart contract. As the user requests the calling of a smart contract in the Ethereum network, you must pay Gas for the Eigenpod transaction and sign it in your wallet.

5. After the user has signed the transaction, the Eigenpod address will be created, and its withdrawal credentials will be automatically filled in the 'Withdrawal address' field in 'Advanced settings.' Pressing the Continue button to continue the process:

6. The system will start the staking process and will show you the final staking details. Review details, and press the 'Stake' button.

7. The dApp will ask you to sign the transaction with your Web3 wallet. After signing and the transaction pending, the system will confirm that your stake is done successfully!

Watch a video tutorial here:

How to restake with a new or existing EigenPod address:

To restake, you first need to set up an EigenPod address that will be connected to your wallet. This EigenPod address will be the withdrawal address in the P2P.org staking dApp. To do this:

1. Go to https://app.eigenlayer.xyz/ and connect a wallet:

2. Click "Create EigenPod" and confirm this transaction in your wallet:

3. A confirmation message will confirm your EigenPod was created successfully:

4. Click "Pod Details" and copy your EignePod address:

5. Visit eth.p2p.org to complete the next step in the process: Staking your ETH to an Ethereum validator. This step takes around two minutes and does not require registration or completing KYC. The below image shows how to complete this simple process: You need to turn on the checkbox Eigenlayer restaking and set your EigenPod address as the validator Withdrawal address in Advanced settings:

6. After staking completion, your validators will enter the validator entry queue, and by the time you're live, your EigenPod balance, will immediately reflect the stake. You can check the current activation time in our Ethereum queue dashboard.

Watch a video tutorial here:

Q&A:

How can I do restaking for EigenLayer?

We have a simple guide for restaking; check it out here: https://p2p.org/economy/eigen-layer-restaking-with-p2p-org-guide/

What are the Restaking points?

Rewards and how they are distributed are still a work in progress. The Eigen Layer team plans to share more details in 2024Q2. For now, extra rewards are distributed by Eigenlayer in Restaking points. Restaking points measure your contribution to the shared security of the EigenLayer ecosystem, the temporary proof of your participation in the EigenLayer network. You will receive Restaking points in your Eigenpod during the restaking process.

How many Restaking points will I get for restaking?

Restaking points are a measure of staking participation equal to the time-integrated amount staked in units of ETH*hours. You can read here more about how this share is measured in Eigenlayer documentation about Restaking points: https://docs.eigenlayer.xyz/eigenlayer/restaking-guides/restaking-user-guide/restaked-points

What risks are involved with restaking?

Restaking, while offering additional rewards, also brings with it inherent risks. Validators participating in restaking face potential penalties from Ethereum and EigenLayer if they violate network consensus rules.

Moreover, validators' withdrawal credentials are tied to EigenLayer's upgradeable Eigenpod smart contracts, introducing further elements of complexity and risk.

A comprehensive risks FAQ by Eigen Layer covers all risks;

What about Eigenlayer slashing risks?

There is no slashing until the protocol upgrade in the second half of 2024, giving new protocols and operators enough time to develop a robust risk mitigation framework.

In the future, validators participating in restaking face potential penalties from Ethereum and EigenLayer if they violate network consensus rules. So operators should carefully setup infrastructure and choose AVSes to run. Regarding native vs. LST, native restaking is a much safer option than restaking LST tokens, since your withdrawal credentials are associated with smart contracts under your management.

How Eigenlayer addresses restaking risks?

1. Smart contracts are audited, and a $2 million bug bounty program has been initiated since December 2023, underscoring its commitment to ongoing security enhancements.
2. There is a community multisig (P2P.org is one of 13 members). In extraordinary circumstances, the Community Multisig can perform emergency actions, including immediately executing time-critical upgrades or replacing the Operations Multisig in the event of private key compromise. https://docs.eigenlayer.xyz/eigenlayer/security/multisig-governance
3. There is no slashing until the protocol upgrade in the second half of 2024, giving new protocols and operators enough time to develop a robust risk mitigation framework.
4. Regarding unintentional slashing due to protocol/AVS mistakes, EigenLayer establishes a "slashing council." This council will oversee and adjudicate any slashing incidents, ensuring fairness and accuracy in administering penalties while the slashing mechanism evolves. The slashing event doesn't burn ETH; it only freezes it on the EigenPod address. This freeze can be removed by slashing the council. That will secure early restakers from slashing losses due to AVS/protocol mistakes.

How to exit from Eigenlayer?

After validators are exited from the Ethereum network, your ETH transfers to the EigenPod address, and after a 7-day lock period, you can withdraw them from EigenPod.

Contact Us:

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We are always open for communication.

We encourage you to check our website and start our staking journey together!

Web: https://p2p.org
Blog: https://p2p.org/economy
Twitter: @p2pvalidator
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