Restaking is a mechanism that reuses the locked economic security of Ethereum to enhance the security of smaller networks and applications. Restaking allows validators to opt in by assigning their credentials to smart contracts on the Ethereum blockchain, thereby earning additional revenue for securing chosen modules. This process broadens the range of blockchain applications that can benefit from pooled security, as validators validate various modules including consensus protocols, data availability layers, virtual machines, and bridges.

There are two types of restaking, native restaking where participation requires running an Ethereum validator node and changing withdrawal credentials to EigenLayer's smart contracts, and liquid restaking where users can deposit liquid staking tokens and delegate assets to a particular Operator. Restaking streamlines the bootstrapping security process for new applications, making it more cost-effective, efficient, and scalable.

Operators, who can be individuals or organizations, play an active role in the EigenLayer protocol. By registering within EigenLayer, ETH stakers can delegate their staked assets, whether native ETH or LSTs. The Operators then opt-in to provide a variety of services to AVSs, enhancing the overall security and networks’ functionality.

AltLayer introduces an open and decentralized protocol tailored for rollups, aiming to enhance their security, interoperability, decentralization, and crypto-economic finality. At its core, AltLayer presents the concept of Restaked rollups, which merges existing rollups from various rollup stacks like OP Stack, Arbitrum Orbit, ZKStack, and Polygon CDK with EigenLayer's restaking mechanism.

Restaked rollups leverage the simplicity of deploying rollups from different stacks while harnessing EigenLayer's restaking capability to bolster network security and establish a decentralized network. These rollups consist of three vertically integrated AVSs, tailor-made for specific rollups, regardless of their underlying stack. These AVSs collectively provide crucial services like verifying the state correctness of rollups, achieving faster finality, and enabling decentralized sequencing. The modular components facilitating these services are VITAL (AVS for decentralized state verification), MACH (AVS for fast finality), and SQUAD (AVS for decentralized sequencing).

AltLayer MACH AVS is tailored to cater to the needs of OP Mainnet. This dedicated MACH AVS utilizes EigenLayer's restaking mechanism to initiate economic security and establish an open, decentralized network. Notably, it marks the pioneering AVS within the restaked rollup framework to serve a prominent rollup network such as OP Mainnet.

You can restake multiple LSTs to earn a yield, delegating tokens to Operators of your choice.

We recommend using a Ledger Hardware Wallet to keep full control over your funds. To nominate your tokens, you should ensure you have your ETH or LSTs on MetaMask or Rabby Wallet and follow the steps below:

Step 1: Open the EigenLayer App and connect your wallet.

Step 2: Proceed to the Restake tab by clicking “Restake Your Tokens”.

Step 3: Select the asset to restake.

Step 4: Input the desired amount and click “Deposit”.

Step 5: Approve and confirm the transaction in your wallet.

​​Step 6: Continue to the AVS tab.

Step 7: Select AltLayer MACH to restake.

Step 8: Scroll down to the Operators section and choose one of the options.

Step 9: Click “Delegate” to deposit tokens to the Operator.

Step 10: Token Approval. Once the token approval transaction is confirmed, you will be prompted to confirm the deposit transaction.

Step 11: Confirm the deposit transaction in your wallet.

Restaking presents exciting opportunities for users to increase their yield, but it also comes with risks that must be carefully managed. Users must navigate the diverse range of AVSs launching on EigenLayer, each with its own slashing rules and risk profiles.

Slashing risk: These risks encompass the potential for slashing, which occurs when validators violate restaking terms, leading to penalties and potential losses. This penalty could impact restakers who entrust assets to Operators. Like any staking activity on Ethereum, the ETH you commit is subject to network regulations, with breaches potentially resulting in partial or total token losses. Slashing is not yet implemented on EigenLayer, therefore, it is a future risk. However, it is going to be introduced later this year.

Systemic risk: Vulnerabilities associated with restaking include operation concentration and the potential impact on Ethereum's security. The interconnectedness of AVSs within EigenLayer can amplify risks, as security issues with one AVS may affect others, leading to systemic failures.