We are constantly innovating to give our customers access to new technologies. Today we are excited to announce the launch of Ethereum restaking via EigenLayer, a revolutionary new way to secure decentralized applications (dApps) with your staked ETH and earn additional staking rewards.
What is Ethereum resttaking and how does it work?
Earning rewards is no longer limited to traditional staking (locking up your ETH to help secure the Ethereum network). Restoration allows you to use your staked ETH to help secure dApps built on the EigenLayer network, earning additional rewards from EigenLayer.
How Ethereum resttaking works on EigenLayer
- You choose to participate in the restoration of EigenLayer via Kraken
- Your staked ETH continues to contribute to the security of the Ethereum network
- In additionyour ETH is used to secure other dApps built on Ethereum, known as actively validated services (AVS).
By ensuring the security of these dApps, you have the right to additional rewards on top of your standard ETH staking rewards.
Why choose Kraken for ETH restocking?
Simplified experience
Kraken facilitates access to this new technology. You can reinvest the same ETH you already staked on Kraken.
Experienced validators
Staked, a subsidiary of Kraken, is the validator for ETH reinvested using Kraken. Staked is one of the leading EigenLayer operators whose services are generally only available to their institutional clients.
Understanding crypto retake
While it’s easy to sign up for ETH rebalance and get additional rewards, it’s important to understand a few basics.
Distribution of rewards
Rewards are paid in AVS tokens, which represent the dApps your ETH helps secure. These can include tokens from sidechains, data availability layers, oracles, bridges and much more. You can receive tokens like EIGEN or others depending on AVS distribution.
Secondment period
EigenLayer implements a minimum deposit period of 7 days, in addition to the untying period for withdrawing assets from the Ethereum network. This means that accessing your ETH may take longer than standard staking on Ethereum.
Automatic allocation
Restaked ETH will support the AVS listed here.
Risks
Re-staking on EigenLayer carries additional risks* compared to standard staking on Ethereum. You can learn more about these risks here.
Am I eligible for ETH restaking?
To participate in the EigenLayer restoration via Kraken, you will need:
- A verified Kraken Pro account (intermediate level or above)
- ETH in your spot account or your staked balance
- Residence outside prohibited geographic areas (such as the United States)
Kraken & Ethereum: a legacy of innovation
Kraken and Ethereum go back a long way. We were the first exchange to list ETH. Our long history of supporting Ethereum’s revolutionary technology continues by offering the EigenLayer Rebalance, as we continue to innovate and provide our customers with the best possible ways to access new technologies and participate in the future of decentralized finance.
Restore your Ethereum on Kraken today:
Need more information? Check out our ETH Refresh Support Guide, our Learning Center Cryptocurrency Refresh Guide, and Kraken Support FAQ for quick answers!
* Although EigenLayer improves security overall, the risk is slightly higher. If the applications you support are compromised, you could face additional penalties. We will compensate you for any penalties and non-payment of applicable staking rewards, unless it results from your actions, network maintenance or a bug, hack and in certain other situations. For a full list of circumstances in which we will not compensate you for drastic penalties, please refer to our Terms of Use.
These materials are intended for general information purposes only and do not constitute investment advice or a recommendation or solicitation to buy, sell, stake or hold any crypto-asset or to engage in any trading strategy. specific trading. Kraken makes no representations or warranties of any kind, express or implied, as to the accuracy, completeness, timeliness, suitability or validity of this information and shall not be liable for any errors, omissions or delays. in this information or for any loss, injury or damage resulting from its display or use. Kraken does not and will not endeavor to increase or decrease the price of any particular cryptoasset it makes available. Some crypto products and markets are unregulated and you may not be protected by government compensation and/or regulatory protection programs. The unpredictable nature of crypto-asset markets can result in losses of funds. Tax may be payable on any returns and/or increases in the value of your cryptoassets and you should seek independent advice on your tax situation. Geographic restrictions may apply.
