TL;DR: Traditional Ethereum staking secures the base network for a ~3.5% APR. Restaking, pioneered by EigenLayer, repurposes those staked assets to secure additional services, stacking yields for higher capital efficiency. This advancement introduces multi-layer slashing risks and longer unbonding periods. In 2025, the market has shifted from speculative "points" to sustainable, fee-based rewards.
Who This Is For
This guide serves Ethereum investors seeking to maximize yield beyond base staking rewards. It targets those comfortable with intermediate DeFi risks and institutional treasuries looking to optimize capital efficiency in a mature 2025 market.
Ethereum’s "Buy and Hold" era has ended. Generating passive income in 2025 requires choosing between network security and yield optimization. With the staking market exceeding $245 billion, ETH now performs multiple roles simultaneously. While traditional staking provides the bedrock of network security, restaking institutionalizes the ability to "double-dip" into decentralized finance (DeFi) yields. However, higher efficiency expands the surface area for risk.
1. Staking: The Baseline Yield
Staking requires locking 32 ETH to activate a validator on the Ethereum Mainnet. Liquid staking pools provide an accessible entry point for those with less capital. This serves as the "on-chain fixed income" of the digital age, yielding a reliable 3–4% APR.
The 2025 market reflects a massive institutional shift. Since the maturation of spot ETFs, large-scale entities no longer permit ETH to sit idle. Staking now functions as a standard treasury management tool, providing a low-risk baseline for global digital asset portfolios.
2. Restaking: The EigenLayer Revolution
Restaking allows investors to "re-pledge" already-staked ETH or Liquid Staking Tokens (LSTs) like stETH through protocols like EigenLayer. This utilizes the same underlying asset to generate income from two distinct service providers simultaneously.
The Restaking Ecosystem
Three core players drive this market. Actively Validated Services (AVS) act as the primary security customers. Rather than building independent validator sets, these bridges or oracle networks rent Ethereum’s established security through EigenLayer.
Operators support these services by running specialized software required by various AVSs. Restakers delegate assets to these operators, relying on their infrastructure to earn rewards. EigenLayer dominates this sector with a 62% market share of the $24.7B restaking market. The model has expanded beyond Ethereum; Babylon currently commands 22% of the Bitcoin restaking market, followed by Symbiotic at 8.8%.
3. The Yield Stack: 2025 Expectations
Restaking layers rewards to maximize returns. In 2025, the yield stack follows this structure:
| Layer | Source of Yield | Estimated APR (2025) |
|---|---|---|
| Base Layer | Ethereum Consensus (PoS) | ~3.2% - 3.8% |
| Restaking Layer | AVS Fees & Incentives | +0.5% - 2.0% |
| DeFi Layer | LRT Lending & Liquidity | Variable |
The 2025 market has moved past "points-farming." As speculative airdrop campaigns concluded, rewards in hype-driven protocols plummeted. Investors now prioritize protocols backed by real, fee-generating AVSs over inflationary incentives.
4. Liquid Restaking Tokens (LRTs)
Protocols such as Ether.fi, Renzo, and Puffer simplify the restaking experience via Liquid Restaking Tokens (LRTs). Depositing ETH yields an LRT (such as eETH). This receipt token remains liquid, allowing users to trade or deploy it in DeFi applications while the underlying ETH earns both staking and restaking rewards. LRTs eliminate the opportunity cost of locking assets.
5. Risk Management
Restaking introduces technical and systemic risks that demand attention:
- Multi-Layer Slashing: Restakers face penalties on both the Ethereum layer and the AVS layer if their chosen operator fails to follow specific validation rules.
- Liquidity De-pegging: During market volatility, LRT prices can decouple from ETH. Selling during a crash may force a realization of significant losses.
- Extended Unbonding: Restaking protocols impose an additional 7-day escrow period beyond Ethereum's standard exit queue, reducing capital agility.
Perform rigorous due diligence on the Operator. Their technical redundancy and uptime serve as the primary safeguards for your principal.
Our Verdict
Staking is the mandatory baseline for any long-term ETH holder. Restaking is the superior choice for active investors willing to accept higher slashing risks for a 1–2% yield boost. Avoid "points" schemes; focus on EigenLayer-based LRTs that generate revenue from established Actively Validated Services.
Key Takeaways
- Staking offers conservative growth; Restaking optimizes yield.
- EigenLayer remains the dominant infrastructure, but the market now demands fee-based revenue models.
- LRTs provide the easiest entry point but carry de-pegging risks.
- Risk is the Price: Higher restaking yields directly compensate for the risk of multi-layer slashing.
