Restaking Tokens

Liquid restaking, initially popularized by Lido.

Concepts

Liquid Staking: This allows users to stake their ETH and receive a liquid staking token (LST), such as stETH from Lido. This token represents the staked ETH and can be used in various DeFi applications while still earning staking rewards.
Restaking: EigenLayer enables users to take their liquid staking tokens (like stETH) and restake them to secure additional blockchain projects, known as Actively Validated Services (AVSs). This process allows users to earn additional rewards on top of the original staking rewards.
Actively Validated Services (AVSs): These are projects that require validation and security but do not want to go through the process of bootstrapping their own native tokens. Examples include sidechains, data availability layers, and other decentralized applications.
Operators: These are entities that manage the restaked assets and direct them to AVSs. They play a crucial role in ensuring the security and functionality of the AVSs.
Slashing Conditions: These are penalties imposed on stakers if they act maliciously or fail to meet the required security standards. This ensures that the restaked assets are used responsibly.