The Ethereum ecosystem is entering a new phase of innovation and growth, driven by two major narratives: the upcoming Cancun upgrade and the explosive rise of restaking, led by EigenLayer. As Ethereum’s staking economy matures, restaking has emerged as one of the most compelling trends in 2025, unlocking new layers of security, yield, and composability across blockchains.
With over 500,000 ETH deposited and a total value locked (TVL) exceeding $1.6 billion, EigenLayer has rapidly become the 12th largest protocol on Ethereum. But what’s fueling this momentum? And which projects are best positioned to capitalize on this shift?
Let’s explore the restaking landscape, identify key players, assess risks, and uncover strategies to maximize yield—safely and efficiently.
Why Is Restaking Gaining Momentum in 2025?
The approval of Bitcoin spot ETFs not only boosted BTC but also reignited institutional interest in Ethereum. Markets now anticipate a similar Ethereum spot ETF in the near future, while the Cancun upgrade promises major scalability improvements through proto-danksharding—directly benefiting Layer 2 networks.
But beyond these macro catalysts, a deeper structural shift is underway: the monetization of trust.
EigenLayer enables users to re-stake their ETH or liquid staking tokens (LSTs)—like stETH or cbETH—across third-party applications such as sidechains, oracles, and data availability layers (DA). These applications, known as Actively Validated Services (AVSs), inherit Ethereum-level security without building their own validator sets.
This creates a win-win:
- ETH stakers earn additional yield beyond traditional staking rewards.
- AVS developers gain access to robust, decentralized security at lower cost.
👉 Discover how restaking can unlock passive income with secure, Ethereum-backed validation.
As EigenLayer expanded its LST deposit limits, it triggered a flood of capital into restaking protocols. Now, even Cosmos chains are exploring integration, allowing them to leverage Ethereum’s security layer—a breakthrough for cross-chain interoperability.
The first major AVS on EigenLayer, EigenDA, is set to launch soon. With Celestia’s TIA token surging on DA narrative hype, EigenDA could become a central player in modular blockchain infrastructure.
Top Restaking Projects to Watch in 2025
While EigenLayer powers the base layer, several innovative projects are building on top to enhance accessibility, liquidity, and user experience. Here are five leading unlaunched-token restaking platforms that also contribute to EigenLayer points:
Kelp DAO – Liquid-LSD Restaking
Kelp DAO, developed by multi-chain LSD platform Stader Lab, allows users to deposit LSTs like stETH and ETHx into EigenLayer via a liquid restaking model. Users receive Liquid Restaking Tokens (LRTs) that maintain liquidity while accruing dual rewards.
Although deposits are currently paused due to EigenLayer’s LST quota cap, Kelp DAO runs its own points program. Given Stader’s successful token launch (SD), Kelp may follow with its own token—and potential SD-Kelp synergy.
Swell – Liquid Native Restaking
Swell, an established LSD protocol, has expanded into liquid native restaking. By depositing ETH directly, users receive rswETH, which is then restaked via EigenLayer.
Because this method uses native ETH rather than LSTs, Swell bypasses EigenLayer’s LST deposit caps. Its LST token, swETH, ranks second in EigenLayer TVL—a testament to strong community adoption.
With no token yet released, Swell offers significant airdrop potential, making it a favorite among yield seekers and points farmers.
ether.fi – Decentralized & Non-Custodial Restaking
Backed by BitMEX founder Arthur Hayes with a $5.3 million seed round, ether.fi stands out for its non-custodial approach to ETH staking and restaking.
It issues eETH (wrapped as weETH), one of the few liquid LRTs available today. Unlike traditional LSDs that rely on centralized validators, ether.fi emphasizes decentralization and transparency.
As a Liquid Native Restaking provider, it avoids LST quotas entirely—allowing continuous deposits even during network congestion.
Renzo – High-Yield but Locked Liquidity
Renzo operates under the same Liquid Native Restaking model but currently imposes restrictions: deposited ETH cannot be withdrawn, and its LRT (ezETH) is non-transferable.
Despite these limitations, Renzo raised $3 million in seed funding from reputable investors and maintains relatively low TVL compared to peers—making it an attractive option for early adopters chasing high yields and future token incentives.
However, concerns remain about team anonymity and lack of exit flexibility.
Puffer Finance – Lowering the Entry Barrier
Puffer Finance aims to democratize restaking by reducing the 32 ETH node requirement down to under 2 ETH—opening the door for small-scale validators.
Like ether.fi, it’s a Liquid Native Restaking protocol backed by Jump Crypto with $6.15 million in funding. While staking isn’t live yet, its anti-slashing design and low entry threshold position it well for mass adoption once launched.
How to Accelerate Rewards Using Pendle
For advanced users seeking leveraged yield accumulation, Pendle Finance offers a powerful toolset.
Pendle splits yield-bearing assets into two tradable tokens:
- PT (Principal Token): Represents future principal.
- YT (Yield Token): Represents future yield.
By purchasing YT-eETH, users can effectively front-run future rewards from ether.fi and EigenLayer—including:
- Staking yield
- Dual points from ether.fi
- EigenLayer积分
- Pendle trading incentives
Currently, 1 eETH can be used to buy approximately 11 YT-eETH units—effectively applying 11x leverage on yield accrual.
⚠️ Important: YT prices decay over time as maturity approaches. This strategy works best for short-term points farming—not long-term holding.
Alternatively, users can provide liquidity (LP) in Pendle pools for more stable exposure. However, this comes with risks like impermanent loss and slower points accumulation.
Frequently Asked Questions (FAQ)
Q: What is restaking?
A: Restaking allows ETH holders to reuse their staked assets (ETH or LSTs) to secure additional networks (AVSs) via EigenLayer, earning extra rewards while extending Ethereum’s security model.
Q: Is restaking safe?
A: While promising, restaking introduces multi-layered risks, including slashing penalties, smart contract vulnerabilities, and systemic centralization if too much stake concentrates in one protocol.
Q: Can I lose money with restaking?
A: Yes. If an AVS you’re validating behaves maliciously or suffers an exploit, your staked ETH may be slashed. Always assess protocol audits and risk parameters before depositing.
Q: Which restaking method avoids EigenLayer’s LST cap?
A: Liquid Native Restaking (e.g., ether.fi, Swell) uses native ETH instead of LSTs, so it isn’t subject to deposit limits imposed on Lido or Rocket Pool tokens.
Q: Will all these projects launch tokens?
A: Most likely. Kelp DAO, Swell, ether.fi, Renzo, and Puffer Finance all run points programs—strong indicators of future token distribution.
Q: Does participating in Pendle increase my risk?
A: Yes. Leveraging YT tokens amplifies both rewards and risks. Market volatility, price decay, and smart contract exposure mean this strategy suits experienced DeFi users only.
Risks You Can’t Ignore
Restaking is often described as “Airbnb for trust”—but like any financial innovation, it comes with trade-offs:
- Slashing Risk: Misbehavior in any AVS can result in partial or full loss of staked assets.
- Centralization Risk: Over-concentration of restaked ETH in a few protocols threatens Ethereum’s decentralization.
- Smart Contract Risk: Bugs or exploits in EigenLayer or AVS code could lead to catastrophic losses.
- Cascading Failures: Since multiple protocols stack on each other (e.g., Kelp → EigenLayer → AVS), failure at any layer impacts all upstream participants.
Always remember: higher yields come with higher complexity—and higher risk.
Final Thoughts: A New Era of Composable Security
Restaking represents a paradigm shift in how blockchain security is provisioned and rewarded. In 2025, with Ethereum’s ecosystem revitalized by upgrades and market momentum, EigenLayer and its ecosystem of LRT protocols are poised to redefine value flow across Web3.
Projects like ether.fi, Swell, and Puffer Finance are lowering barriers to entry, while tools like Pendle enable sophisticated yield optimization.
Yet amid the excitement, caution remains essential. Diversify your exposure, understand each protocol’s risk profile, and never stake more than you’re willing to lose.
The future of trust is being rebuilt—one restake at a time.