A Step-by-Step Guide: Eigen Layer Restaking

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Eigen Layer restaking alive!

EigenLayer successfully launched Stage 1 Mainnet. This is a significant milestone and we are 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 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 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 afterwards! 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 (considering all risks that it might have)

Restaking with P2P.org

You are already able to restake your ETH with P2P.org Ethereum staking dApp. Our non-custodial staking dApp already supports customization of validator withdrawal addresses, which is the basic requirement for native restaking to an EigenPod. Below we have prepared a step-by-step guide on how to do this. However, before restaking, please take note:

Withdrawal address is used for getting your ETH deposit back. Its specified once, and nobody can change it after the staking deposit is sent because the network cements the association of a particular validator and withdrawal address. When you decide to put EigenPod Address as a withdrawal address, you accept Eigen Layer smart contract risk and understand that P2P.org can't change this address.

To restake you first need to set up an EigenPod address that will be connected with your wallet. This EigenPod address will be used as 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 2 min and does not require registration or KYC. The below image shows how to complete this simple process, but note that you must set your EigenPod address as the validator withdrawal address.

P2P.org's unique feature is enabling MEV rewards for stakers with an EigenPod address. What's crucial because, by default, EigenPod does not accept MEV rewards. Check the next paragraph for further details.

Validators propose new blocks and receive rewards, which include MEV, to their execution rewards address. Technically, the withdrawal address and the execution rewards address can be different. However, to simplify the staking process, most operators set the withdrawal address as the execution rewards address by default. However, this poses an issue for restaking: EigenPod doesn't accept direct transactions from MEV bots, which means it can't receive most of the MEV rewards either.

We resolve this issue by automatically checking if you have put EigenPod as your withdrawal address. In such cases, we extract your EigenPod owner's wallet and use it as the execution rewards recipient address. This ensures that your MEV rewards are completely secure.

6. Then you after staking completion, your validators will enter the validator entry queue, and by the time your them are live your EigenPod balance will immediately reflect the stake. Current entry queue time is approximately 1 day. You can check the current activation time in our Ethereum queue dashboard.

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Vladislav Kurenkov

Ethereum Product Manager at P2P.org

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