ETH Restaking: Is it worth it?

[Abiky]

Before I begin restaking some ETH at EigenLayer, I want to know your experience.

Please answer the following questions:

1. Is it profitable to re-stake ETH? If not, why?

2. What are the risks involved in doing so?

3. Why should I re-stake ETH when I can just stake ETH directly at a staking pool?


Any suggestions and/or recommendations would be greatly appreciated. Thanks in advance.

[hyudien]

Before I begin restaking some ETH at EigenLayer, I want to know your experience.

Please answer the following questions:

1. Is it profitable to re-stake ETH? If not, why?

2. What are the risks involved in doing so?

3. Why should I re-stake ETH when I can just stake ETH directly at a staking pool?


Any suggestions and/or recommendations would be greatly appreciated. Thanks in advance.

For now the profit is no longer promising because the EIGEN token has been launched so when you only stake ETH there then it only depends on APR nothing more. However if you are trying to target a partnership project then ETH staking may be allowed as long as there is time before the snapshot, the most important thing is to make sure you choose a truly trusted Operator and are targeting TGE.

Below is an example where I have delegated assets in InfStones until now there is no profit at all.

[Abiky]

For now the profit is no longer promising because the EIGEN token has been launched so when you only stake ETH there then it only depends on APR nothing more. However if you are trying to target a partnership project then ETH staking may be allowed as long as there is time before the snapshot, the most important thing is to make sure you choose a truly trusted Operator and are targeting TGE.

Below is an example where I have delegated assets in InfStones until now there is no profit at all.

That's what I've thought. I've seen better returns on platforms such as Solana and Base. Only asked about ETH restaking out of curiosity. Just to know someone else's experience before trying it. What I'm concerned about is ETH's market performance these days. The cryptocurrency is still below its ATH of around $4.8k per coin. Meanwhile, BTC reached a new ATH after the 2024 US presidential election. If you held ETH back in 2021's ATH, you'd be in a huge loss now. So returns would be negligible. At least in Fiat terms.

Thanks for your advice, btw. I'll pay close attention to future changes on Eigenlayer. I hope it becomes profitable like it was back then. One can dream, right?

[TastyChillySauce00]

1. Is it profitable to re-stake ETH? If not, why?

2. What are the risks involved in doing so?

3. Why should I re-stake ETH when I can just stake ETH directly at a staking pool?

1. I wouldnt call it profitable enough since APR is pretty meh
2. Contract exploit and risk of depegging
3. Honestly, both works, I would only restake if i bought ETH at bottom and waiting for the price to go up. Also LST can be supplied to lending platform to loop so you can get APR, I don't recommend this though.

ETH restaking in my opinion only worth it if you happen to buy the bottom and want that APR, other than that it's not worth it. just my 2 cents though.

[asriloni]

Been staking ethereum restaking such as Puffer, Renzo, Swell, or even KernelDAO. It's all crap and gave nothing than pennies for thousands dolalrs of investment.

Eigen is a bit differ cuz it got massive funding by VCs, but all of ethereum restaking never ever worth to try. I have done it enough, and never try to repeat it again.

I'm done with ethereum restaking, not worth with the time and our capital. Staking ethereum might give you impermanent lose.

Stay away!!!!

[jaberwock]

Before I begin restaking some ETH at EigenLayer, I want to know your experience.

Please answer the following questions:

1. Is it profitable to re-stake ETH? If not, why?

2. What are the risks involved in doing so?

3. Why should I re-stake ETH when I can just stake ETH directly at a staking pool?

Never heard of eigenlayer, that seems like a new thing, I can't talk about that and could be a risky place. But aside from that, I can answer the other three questions quite easily. Staking ETH is something you do, because you do not want it to stay idle on your wallet, 1 is bigger than zero, so even if ETH was giving 1% return yearly, that is bigger than 0% yearly you get from just staying in your wallet.

So answer to question one is yes, it is profitable, compare d to alternative of zero profits by just holdng it. Risk are the places, like eigenlayer, maybe that is a great place, I just never heard of it, so I am not entirely sure if you should, but the biggest risk, is to use a place that could steal it, that is the risk. I am not sure, if you want to re-stake, you do, if you do not want to, you don't, it is all based on what you want to do, there isn't a "why" we can answer.

[JeffBrad12]

Restaking is plain useless, you get a useless coin that supposedly represent your native staked token in exchange for low interests. You're basically exchanging gold for an empty token.
Whether or not your asset will be safe, depend on the restaking platform because your money is in their custody, their contract isn't decentralized for the most part because they retain ownership and can do whatever they wanna do, that without taking into account how many grifter devs there are in the spaces. This reminds me disaster of stablecoin called usual where you deposited USDC in exchange for USD0++ (wrapped interest bearing token pegged to USD) in 1:1 ratio and after a while they reduced price floor for USD0++ and make people lose 10% of their money's value. converting it into discounted bond.

[Abiky]

Restaking is plain useless, you get a useless coin that supposedly represent your native staked token in exchange for low interests. You're basically exchanging gold for an empty token.
Whether or not your asset will be safe, depend on the restaking platform because  money is in their custody, their contract isn't decentralized for the most part because they retain ownership and can do whatever they wanna do, that without taking into account how many grifter devs there are in the spaces. This reminds me disaster of stablecoin called usual where you deposited USDC in exchange for USD0++ (wrapped interest bearing token pegged to USD) in 1:1 ratio and after a while they reduced price floor for USD0++ and make people lose 10% of their money's value. converting it into discounted bond.

So much for "decentralized finance", lol. ETH is a joke. It's heavily funded by VCs whose interests are to link the traditional financial system into Ethereum. Same goes for Solana and similar coins. This increases the risk of centralization. Long-gone are the days when developers actually cared about decentralization. "Self-custody" and "censorship-resistance" are diminishing each day.

Based on your experience, I think I'm better off "staking" Bitcoin on a L2 such as Babylon or Core. It's much more rewarding, and best of all, "self-custodial". "De-Fi" is starting to get traction on BTC, so it won't be long before ETH becomes history.