Eigen Layer & ankrETH: Multiply Your Reward Earning Potential With Restaking

Kevin Dwyer

Kevin Dwyer

February 1, 2024

4 min read

In Brief

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    Exciting news awaits those who stake ETH on Ankr Staking or would like to do so soon! Starting Monday, February 5, all ETH stakers will be able to delegate their ankrETH tokens to Eigen Layer during a 5-day window to earn an additional layer of rewards to add to the APY they receive for normal Ethereum staking.

    Learn more about Eigen Layer and follow the guide below to make the most of your Ethereum staking rewards below.

    What Is Eigen Layer?

    EigenLayer is a protocol built on Ethereum that introduces a novel concept called "restaking," which aims to enhance blockchain security and scalability. It enables users who have already staked ETH to leverage their staked assets to secure additional applications on the network, effectively "re-staking" their ETH.

    Here's a breakdown of some key features:

    Restaking: ETH stakers and liquid stakers (like those with ankrETH) can opt into EigenLayer's smart contracts to repurpose their staked ETH for securing other applications on the network. This enables the “rehypothecation” of staked ETH, allowing it to serve multiple security purposes.

    Security Aggregation: EigenLayer pools together staked ETH from various validators, creating a larger collective security pool. This aggregate security can then be extended to new applications or blockchain layers, reducing the need for each application to bootstrap its own validator set.

    Applications: EigenLayer can be used to secure a wide range of blockchain applications and services, including:

    • Layer 2 rollups
    • Sidechains
    • Oracles
    • Cross-chain bridges
    • Data availability layers

    Eigen Layer’s Key Benefits for Web3

    Enhanced Security: New applications and protocols can inherit the robust security of Ethereum's staked ETH pool. This can make them more resilient to attacks and increase user confidence.

    Improved Scalability: By enabling multiple applications to share the same security layer, EigenLayer can help reduce the overall resource requirements for securing blockchain networks.

    Capital Efficiency: Staked ETH can be used more efficiently, providing security for multiple applications simultaneously.

    Ecosystem Growth: EigenLayer can foster innovation by making it easier and more cost-effective for developers to launch new blockchain applications and services.

    How Does Restaking ankrETH on Eigen Layer Earn More Rewards?

    If you liquid-stake ETH on the Ankr Staking platform, you know that you will earn an APY, usually in the 3-4% range. However, starting on February 5, you will be able to delegate your ankrETH tokens (that you receive by staking ETH on Ankr Staking) to the Eigen Layer protocol to earn an additional layer of rewards.

    Each additional protocol or application that you assist in securing, known as Actively Validated Systems, will produce new yield on top of your staked ETH rewards. This is a highly stackable APR that can quickly add up to many percentage points for your rewards.

    How Can I Restake My ankrETH on Eigen Layer?

    Follow the guide below for an easy staking process:

    Step 1: Get ankrETH Tokens

    • Liquid Stake Ethereum on Ankr Staking to receive ankrETH tokens.
    • Alternatively, you can swap other tokens for ankrETH on major DeFi protocols (list here) for the same effect.
    • Once you have staked ETH in Ethereum Liquid Staking, you have an opportunity to restake it on EigenLayer.

    Step 2: Deposit Your ankrETH To Eigen Layer (Opening Feb.5 for one week)

    To restake your ankrETH on Eigen Layer, you need to:

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    • Connect your MetaMask wallet holding your ankrETH to the platform

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    • Click Sign to accept the Terms & Conditions of EigenLayer in MetaMask

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    • Enter the desired amount of ankrETH and click Deposit

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    • Confirm the transaction, and allow EigenLayer to access the ankrETH amount, and approve the deposit transaction in MetaMask.

    Please note that the restaking period is limited from February 5th, 12pm PT to February 9th, 12pm PT!

    For the detailed documentation visit the Ankr Docs.

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