Staking pool operators lose up to 30% of potential revenue by leaving ETH idle after validation. Restaking via EigenLayer repurposes this capital to secure additional services (AVS), unlocking a new yield source. Additional income ranges from 3% to 12% APY on top of staking — for a $1M capital that's $30,000–$120,000 per year. We develop turnkey restaking protocols: from architecture to mainnet deployment. Our team has 5+ years in blockchain development, 15+ DeFi projects, and audits by leading firms. Restaking pools have attracted $15B+ TVL, and each new AVS requires proper stake distribution. We guarantee security and optimal yield.
What Does a Restaking Protocol Architecture Look Like?
EigenLayer introduces three roles: Staker (deposits ETH), Operator (manages validators), and AVS (service using restaking). Stakers delegate their funds to operators via the Delegation Manager. Operators register in AVS and take on additional slashing conditions. Detailed role and contract descriptions can be found in the official EigenLayer documentation.
Key contracts:
- EigenPod: contract verifying ETH staking on the Beacon Chain via EIP-4788 and Merkle proofs.
- Delegation Manager: manages delegation and withdrawal delay (7 days in EigenLayer).
- Slasher: AVS contract that calls
slash()on violation.
// Simplified: verification of validator credentials function verifyWithdrawalCredentials( uint64[] calldata oracleTimestamps, BeaconChainProofs.StateRootProof calldata stateRootProof, uint40[] calldata validatorIndices, bytes[] calldata validatorFieldsProofs, bytes32[][] calldata validatorFields ) external { // Verification via Beacon Chain state root // Accrue restaking shares } What Risks Arise in Restaking and How to Avoid Them?
An operator registered in 5 AVS, if slashed in one, loses part of the stake backing all 5 — this is cascading risk. Native restaking reduces liquidity: funds are locked until withdrawal. Liquid Restaking Tokens (LRT) solve this but multiply risks via DeFi. Restaking via EigenLayer increases returns 1.5–2x compared to solo staking, but requires careful control. We thoroughly select operators with >99% uptime and low reward correlation. LRT increases liquidity 2x compared to native restaking — you can use the token in other protocols without withdrawing ETH.
| Approach | Liquidity | Yield | Risks |
|---|---|---|---|
| EigenLayer native restaking | Low (locked until withdrawal) | Base + AVS rewards | Slashing correlated risk |
| Liquid Restaking Tokens (LRT) | High (token used in DeFi) | Depends on strategy | Risk multiplication via DeFi |
| Custom restaking protocol | Configurable | Full control | High development complexity |
How to Choose AVS for Restaking?
Key criteria: operator reliability, slashing conditions, payout frequency, and LRT compatibility. Compare popular AVS:
| AVS | Type | Yield | Risks |
|---|---|---|---|
| EigenDA | DA layer | Medium | Low (proven) |
| Oracle AVS (Chainlink) | Oracle | High | Medium (data accuracy dependency) |
| Bridge AVS | Bridge | High | High (bridge vulnerabilities) |
AVS selection directly impacts the yield profile of the restaking protocol. We help you pick the optimal set for your goals.
How We Develop AVS: Stages and Timeline
The process takes 6–12 months. Key stages:
- Analysis and Design (2–4 weeks): economic model, slashing conditions, AVS selection.
- Smart Contract Development (2–4 months): Middleware, Task Manager, Slasher in Solidity 0.8.x.
- Off-chain Software (1–2 months): node program in Rust/TypeScript.
- Testing and Audit (2–3 months): test coverage, audit (Trail of Bits), formal verification.
- Deployment and Monitoring (1 month): mainnet, Tenderly Alerts.
Typical errors in AVS development:
- Incorrect quorum selection (N-of-M): too small N increases censorship risk, too large reduces performance.
- Ignoring correlated slashing: operators with identical stacks can be penalized simultaneously.
- Missing fallback oracles: if the primary oracle fails, AVS may halt.
- Insufficient testnet testing: bugs in slashing logic lead to fund loss.
Why Operator Selection Matters?
The operator is the central security element. We select candidates with >99% uptime, confirmed via Tenderly monitoring, and low reward correlation. This minimizes cascading slashing risk. Order restaking protocol development from us — you get backup operators and automatic diversification.
What's Included in Turnkey Development
- Source code of smart contracts (Solidity 0.8.x) with NatSpec documentation.
- Off-chain client in Rust/TypeScript.
- Test suite (Foundry/Hardhat) and CI/CD.
- Deployment scripts (Foundry).
- 30 days of post-deployment support.
How to Optimize Restaking Yield?
Key factors: choose AVS with high rewards, diversify across 3–5 AVS, use LRT to reinvest in DeFi. We help set up an automatic rebalancing strategy that can yield an additional 3% APY.
Contact us for a preliminary architecture discussion. Get an engineer consultation and find out how restaking can increase your income.