| Think of Ethereum as a high-interest savings account with a twist.
Depositing your Ether (ETH) gets locked up for a certain period (like a money market or CD). This locking, or “staking,” helps secure the Ethereum network. In return for staking your ETH, you earn staking rewards (similar to how a bank pays interest).
The key difference: Unlike a traditional savings account, new products on Ethereum allow you to reinvest your staking rewards to earn even more ETH automatically.
This is done through Ether.fi and EigenLayer, two separate products that work together to handle your deposits, manage the security, and automatically reinvest your interest payments for you.
Reinvesting your rewards for even greater returns is similar to taking interest from a savings account and putting it into another high-yield account to grow your savings even faster.
However, it does have risks, such as impermanent loss, potential loss of staked funds due to technical issues, and smart contract risk. Don’t stake more than you’re willing to lose.
Our new guide will cover how restaking works using EigenLayer and Ether.fi. Think of it as “staking on steroids.”
Read on to learn more about restaking >> | 