Every so often, DeFi hits a new milestone, and right now, it’s all about restaking and liquid restaking protocols. Forget the old days of single-layer staking; these protocols are redefining what’s possible for crypto holders looking to make their assets work harder. Imagine this: your staked assets are not just sitting there. With restaking, they’re stacking up rewards across multiple layers, compounding returns like never before. And with liquid restaking? You’re getting liquidity out of staked assets, giving you the freedom to move, trade, and leverage without pausing the yield machine.
These new staking mechanisms aren’t just a tweak — they’re a total upgrade, with some of the top protocols pulling in billions in Total Value Locked (TVL) and transforming the DeFi landscape. In this article, we’re taking a close look at six of the biggest players — three in restaking and three in liquid restaking. We’ll break down how they work, what sets them apart, and the powerhouse benefits they’re bringing to DeFi users everywhere. If you’re in DeFi, you’ll want to see what’s unfolding here.
Before diving into specific protocols, let’s break down the basics of restaking and liquid restaking.
- Restaking is all about letting users stack up staking rewards by using assets that are already staked as collateral for additional staking opportunities. Think of it as doubling down on your staked assets by spreading them across multiple protocols, which means higher yields without the hassle of unstaking.
- Liquid Restaking takes things a step further. Here, you get a liquid version of your staked assets — tokens that can be freely traded or put to work in DeFi applications. These liquid tokens keep the rewards rolling in, but with the added benefit of liquidity, so you can use or move assets without interrupting your earning potential.
Top 3 Restaking Protocols in DeFi
Let’s take a look at three top players in the restaking space, highlighting their architecture, unique strategies, and contribution to DeFi.
1. EigenLayer
- Chains Supported: Ethereum
- TVL: $14.10 billion
- Architecture: EigenLayer leverages Ethereum’s validator set, allowing users to restake ETH while simultaneously securing multiple services. By allowing restaking of staked ETH, EigenLayer creates a framework where users can contribute to various DeFi applications with their staked ETH and earn rewards from each.
- What Sets It Apart: EigenLayer’s unique feature is its multi-protocol security model, where restaked assets serve as collateral to multiple DeFi services, creating a security layer that amplifies staking rewards while minimizing the risk of asset withdrawal. This architecture has helped EigenLayer capture over 68% of the restaking market, making it a leading force in Ethereum’s restaking ecosystem.
2. Babylon
- Chains Supported: Bitcoin
- TVL: $5.51 billion
- Architecture: Babylon is designed for Bitcoin holders looking to participate in DeFi while keeping their assets in the Bitcoin ecosystem. Through a wrapped BTC model, Babylon lets users restake their BTC into DeFi protocols without moving assets off-chain.
- What Sets It Apart: Babylon uniquely enables Bitcoin staking in DeFi by creating synthetic BTC that can be restaked across Ethereum-based protocols. This dual-ecosystem approach has proven attractive to Bitcoin holders, who can now earn staking rewards without moving away from BTC. Babylon has grown rapidly, capturing around 10% of the restaking market.
3. Symbiotic
- Chains Supported: Ethereum
- TVL: $2.06 billion
- Architecture: Symbiotic operates by allowing users to leverage their staked ETH to earn rewards across multiple layers of Ethereum’s DeFi ecosystem. Its architecture supports a cross-layer liquidity structure that lets users restake their ETH seamlessly, maximizing yield across different protocols without needing to unstake assets.
- What Sets It Apart: Symbiotic focuses on optimizing yield aggregation through strategic integration with various Ethereum-native DeFi protocols. It stands out for its ease of use, especially for users who seek passive income through staking but want the flexibility of participating in multiple layers of the Ethereum DeFi ecosystem.
Top 3 Liquid Restaking Protocols in DeFi
Liquid restaking protocols take the advantages of restaking a step further by introducing liquidity, allowing staked assets to be actively used within DeFi. Here are the top three liquid restaking protocols making waves in the market.
1. ether.fi
- Chains Supported: Ethereum, Arbitrum
- TVL: $7.76 billion
- Architecture: ether.fi uses a liquid staking model where users receive a liquid token representation of their staked ETH. This token can be freely traded or used as collateral within Ethereum and Arbitrum’s DeFi ecosystems.
- What Sets It Apart: ether.fi’s core innovation is its dual-chain liquidity model, which allows stakers to access liquidity on both Ethereum and Arbitrum. This provides users with unmatched flexibility and a higher yield potential, making ether.fi the dominant player in liquid restaking with over 56% of the market share.
2. Renzo
- Chains Supported: 11 chains
- TVL: $1.14 billion
- Architecture: Renzo supports liquid restaking across multiple blockchain networks, providing a cross-chain liquid token that represents staked assets across 11 chains. This token can be used across various DeFi protocols, expanding its earning potential across different ecosystems.
- What Sets It Apart: Renzo’s cross-chain staking solution allows users to diversify their yield-generation strategies across multiple networks, including Ethereum, Solana, and Binance Smart Chain. This cross-chain approach has driven its rapid growth, making it a favored option among users seeking multi-chain exposure in DeFi.
3. Eigenpie
- Chains Supported: Ethereum, Zircuit
- TVL: $0.87 billion
- Architecture: Eigenpie uses a multi-protocol staking architecture that combines restaking with liquid staking. This allows users to mint liquid tokens for restaked assets, creating new earning potential across DeFi while maintaining liquidity.
- What Sets It Apart: Eigenpie’s integration with multiple protocols and liquid staking options makes it a go-to for DeFi users who want a flexible, liquid staking experience with access to both Ethereum and Zircuit ecosystems. By enabling cross-protocol liquidity, Eigenpie offers unique yield opportunities.
Notable Mentions
While the leading protocols command significant attention, several emerging restaking and liquid restaking platforms are making unique contributions to the DeFi ecosystem:
Liquid Restaking
- Puffer Finance (Ethereum): With a TVL of $279 million, Puffer Finance offers a streamlined liquid restaking solution for Ethereum users. It focuses on secure and simplified staking options, enabling users to maximize yields within the Ethereum network without compromising on liquidity.
- Fragmetric (Solana): Holding a TVL of $42 million, Fragmetric integrates seamlessly with Solana, allowing users to stake SOL assets and receive liquid representations. This opens up additional yield opportunities within the fast-growing Solana ecosystem.
Restaking
- Karak (7 Chains): Karak boasts a TVL of $832 million and offers a multi-chain restaking model. Users can leverage assets across seven different blockchains, providing cross-chain staking opportunities that cater to a diverse range of DeFi ecosystems and enhancing potential rewards through diversification.
- Solayer (Solana): With a TVL of $402 million, Solayer is dedicated to restaking within the Solana network. It enables users to earn yields specifically within Solana, appealing to investors who are focused on this high-speed blockchain and wish to benefit from its unique advantages.
Growth and Dominance in DeFi
The rise of restaking and liquid restaking protocols has reshaped staking in DeFi. With a combined TVL of $37.86 billion (restaking at $24.09 billion and liquid restaking at $13.77 billion), these protocols highlight the growing demand for flexible and innovative staking solutions.
As DeFi continues to evolve, we can expect these protocols to drive further adoption, with multi-chain integration and cross-protocol liquidity as key drivers. With substantial TVL and unique architectures, the top protocols discussed here are leading the way, showing the potential for both restaking and liquid restaking to redefine staking in DeFi.
