Restake osETH On EigenLayer — How To Do It and What To Expect
Just two weeks in, osETH has reached the big leagues with the upcoming integration into EigenLayer!
This is an opportunity for every osETH holder to participate in one of the hottest DeFi protocols of today, and likely the biggest protocol of 2024.
On Monday, December 18th, EigenLayer will allow osETH holders to stake their tokens in exchange for Restaked Points and early access to supporting AVSs, including EigenDA — an innovative data availability layer developed by EigenLayer.
Here is what you should know about osETH restaking rules👇
Basics
🧢 osETH restaking will be available until EigenLayer reaches a 500K ETH cap on deposits, which is expected to happen very quickly based on the previous cap increases. New osETH deposits will also be disabled once osETH reaches the 200K ETH cap on deposits.
🎟 Restaking osETH in EigenLayer is an exclusive chance to get early access to the revenue boosting provided by the first AVSs going live in 2024, and potentially qualify for a rumored EigenLayer airdrop (note: there is no promise of one, but the crypto circles anticipate it).
🛒 Thanks to the Vaults Marketplace, you can access the EigenLayer restaking from the comfort of your chosen Vaults (nodes) by staking ETH and minting osETH to deposit it into EigenLayer.
Follow the instructions below to get started — and join the restaking club!
Instructions
🛒 Head to StakeWise’s Vault Marketplace and choose a Vault based on your preferences 👉 https://app.stakewise.io
🫳 Stake ETH into the chosen Vault and wait for the transaction to be confirmed.
💧 Mint osETH from the chosen Vault and wait for the transaction to be confirmed.
⏭️ Go to the osETH page on the EigenLayer app and connect wallet 👉 https://app.eigenlayer.xyz/token/osETH (link will be available starting Dec 18th, 10 AM Pacific Time).
🔢 Enter the amount of osETH to deposit into EigenLayer and press Deposit.
✅ Confirm the transaction in your wallet.
Once you’ve completed these steps, you can expect your restaked osETH to start generating Restaked Points. Welcome to the Restaking Era! 🎊
FAQ
What is EigenLayer?
EigenLayer is a protocol built on Ethereum that introduces restaking — a new primitive that enables users to lend the cryptoeconomic security of their staked ETH to additional applications on the network. Such applications are largely blockchain systems that require their own trust networks (like Ethereum’s Beacon Chain) that are difficult to bootstrap.
EigenLayer creates infrastructure to allow these applications (which it calls Actively Validated Systems, or AVSs) to tap into the existing cryptoeconomic security of ETH. By design, this is supposed to reduce the costs and technical overhead of running a secure blockchain system. In return, the security budget allocated by AVSs to attract staked ETH is supposed to serve as a compensation to restakers.
What’s in it for me?
Until EigenDA (the first EigenLayer AVS) goes live in early 2024, restakers of osETH will be earning Restaked Points, which is a measure of their contribution to EigenLayer. According to the EigenLayer blogpost, “by restaking early, you can ensure your place within the ecosystem and potentially maximize your staking opportunities over time. Certain services may cap their restake amounts to ensure meaningful participation for their restakers. By restaking early, you’ll be better positioned to benefit from these services as they become available on the EigenLayer platform.”
An airdrop for early restakers has also been rumored; however, there have been no promises made by the EigenLayer team with regards to it.
Is EigenLayer safe to use?
As always, neither StakeWise nor EigenLayer can guarantee that the smart contracts underlying the EigenLayer technology are 100% safe. However, the platform has completed multiple audits (Consensys Diligence, Sigma Prime, Code Arena) and has commanded a multi-million-dollar TVL since May 2023 without any security incidents. Please conduct your own research before deciding to deposit.
Can I withdraw funds from EigenLayer if I decide to leave the platform?
Yes. EigenLayer withdrawals are live, which means you can withdraw funds from the platform at any point. Please note there is a 7-day delay between triggering a withdrawal and the ability to claim the funds from EigenLayer.
Can I withdraw funds from StakeWise if I decide to unstake?
Yes. osETH can be returned to the Vault in which you staked ETH, and your ETH can be unstaked from the Vault at any time. Please note there is an 8-day delay between triggering a withdrawal and the ability to claim your unstaked ETH from StakeWise.
About StakeWise
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Choose the best yields in the StakeWise Marketplace and keep your stake liquid with osETH, our liquid staking token: https://stakewise.io
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