How to get started with Lido stETH restaking on EigenLayer

The liquid staking landscape

Lido’s stETH deposits in EigenLayer surpassed Rocket Pool’s rETH deposits following the September $2 billion TVL cap raise. Lido holds 8.9 million ETH, which accounts for 62% of the liquid staking market. The protocol uses a Staking Router to distribute ETH across the Curated Module with 36 professional operators, the Community Staking Module with 412 active operators, and the Simple DVT Module. Lido charges a 10% fee on staking rewards, splitting it between node operators and the DAO treasury. Dual governance, activated in mid-2025, gives stETH holders veto power if 1% of staked ETH locks in opposition. While stETH uses a rebasing model where wallet balances increase daily, Rocket Pool’s rETH uses a value-accruing model. Rocket Pool’s Saturn I upgrade, launched in February 2026, halved the minimum bond from 8 ETH to 4 ETH and introduced megapools. Rocket Pool remains the most decentralized option with 3,900 independent node operators in over 150 geographic regions. Operators pay a 5% base commission plus up to 9% additional for those who stake RPL tokens. Lido’s massive market share comes from the deep integration of stETH across over 100 DeFi protocols; the token acts as the dominant collateral on lending platforms like Aave V3 which holds over $2 billion in supplied assets.

Accessing EigenLayer yield

Stakers follow two paths to access extra yield. The first path is direct restaking through the EigenLayer interface. Users deposit stETH into EigenLayer smart contracts and then delegate those assets to professional operators. These operators use the stake to secure Actively Validated Services (AVSs) such as EigenDA for data availability, EigenCompute for off-chain execution, or AltLayer for rollup infrastructure. Restakers receive base Ethereum staking rewards plus extra AVS fees. The second path involves Liquid Restaking Tokens (LRTs) like ether.fi (eETH), Kelp DAO (rsETH), Renzo (ezETH), or Puffer Finance (pufETH). LRT protocols handle operator selection and AVS management.

Users can also automate this via stakefish, which supports customizing validator withdrawal addresses to enable native staking with an EigenPod. Ether.fi currently leads the LRT market with over $2.8 billion in TVL, while Kelp DAO holds approximately $874 million. Puffer Finance maintains about $43 million in TVL. EigenLayer’s TVL reached approximately $19.7 billion in 2024 but contracted to between $4.3 and $8.9 billion through mid-2026. If you choose the LRT route, the protocol handles the technical heavy lifting of selecting operators and managing AVS exposure.

Risk and technical constraints

Slashing risk applies to all restakers because EigenLayer activated slashing on its mainnet on April 17, 2025. If an operator fails to perform its validation duties for an AVS, the protocol destroys a portion of the staked assets. Users face multiplied smart contract risk because their assets interact with EigenLayer, AVS, and LST contracts. You inherit the performance profile of the entity you delegate to. If an operator fails to fulfill its validation duties or acts maliciously, EigenLayer can permanently destroy a portion of the staked assets through its opt-in slashing mechanism that went live in April 2025. EigenLayer uses Unique Stake Allocation to isolate slashable stake and limit how much capital is tied to a specific Operator Set.

Unstaking funds from EigenLayer involves a 7-day escrow period. For users using the Lido dashboard for withdrawals, the process is not instant and involves an awaiting period. Withdrawal requests for stETH under 1,000 tokens often complete within a single day from the protocol buffer. Lido remains the superior choice for those prioritizing liquidity over the decentralized structure of Rocket Pool. How will AVS reward structures change as more providers enter the market?