Restaking Protocols Compared: EigenLayer, Symbiotic, Karak, Babylon

Restaking Protocols at a Glance

Restaking allows staked assets to secure multiple networks simultaneously, extending the economic security of one chain to external services. The concept originated on Ethereum with EigenLayer in 2023 and has since expanded into a multi-billion dollar sector with competing protocols, each taking a different approach to collateral types, slashing mechanics, and service ecosystems.

The four major restaking protocols today are EigenLayer (now part of the EigenCloud umbrella), Symbiotic, Karak, and Babylon. The first three operate primarily on Ethereum and accept ETH-based collateral. Babylon takes a fundamentally different approach: it enables native Bitcoin staking without bridging or wrapping, bringing BTC into the shared security conversation.

TVL figures fluctuate significantly. EigenLayer peaked above $15 billion in early 2026 before retracing alongside broader market shifts. Babylon peaked at $5.6 billion in late 2024 before a 32% drop in April 2025 when Lombard temporarily unstaked 14,929 BTC during a finality provider transition, then recovered to over $4 billion.

How Restaking Works

Traditional proof-of-stake staking secures a single network. Restaking extends that security to additional services without requiring new validator sets or fresh capital. Stakers opt in to securing external services and earn additional yield on top of their base staking rewards, in exchange for accepting additional slashing risk.

Each protocol implements this differently. EigenLayer uses operator sets where validators opt into specific AVS tasks. Symbiotic uses modular vaults that separate collateral management from service logic. Karak uses ERC-4626 vaults that support multi-asset restaking across multiple chains. Babylon skips Ethereum entirely, using Bitcoin Script timelocks and extractable one-time signatures (EOTS) to enable native BTC staking on Layer 1.

EigenLayer (EigenCloud)

EigenLayer launched on Ethereum mainnet in June 2023 and quickly became the dominant restaking protocol, commanding roughly 90%+ market share. In mid-2025, the project rebranded under the EigenCloud umbrella, integrating EigenDA (data availability), EigenVerify (dispute resolution), and EigenCompute (off-chain execution) into a unified verifiable cloud platform.

The restaking layer itself remains EigenLayer. Stakers deposit ETH or liquid staking tokens (stETH, rETH, cbETH) and delegate to operators who run validation tasks for AVSs. Operators are organized into operator sets, where each AVS defines its own slashing conditions and reward structures. The protocol runs 1,900+ active operators.

Slashing on EigenLayer uses "Unique Stake Allocation," which lets operators assign specific portions of their staked ETH to individual AVSs. This isolates slashing risk: a penalty from one AVS does not cascade across all services an operator secures. Slashed funds are either burned or redistributed depending on the operator set configuration. The unbonding period is 7 days.

Current yields range from 3.8% to 6% APY depending on the AVS selection, on top of the base Ethereum staking rate of 3-4%. The EIGEN token captures protocol fees, with a proposed ELIP-12 upgrade routing 100% of EigenCloud infrastructure fees to EIGEN buybacks.

Symbiotic

Symbiotic, backed by Paradigm and Cyber Fund, launched as a permissionless alternative to EigenLayer with a focus on modularity. Its core differentiator: any ERC-20 token can serve as restaking collateral, not just ETH and LSTs. The deposit composition is currently dominated by wstETH (64.2%), followed by cbETH and wBETH, but the protocol also accepts tokens like ENA, mETH, and swETH.

Symbiotic's architecture separates concerns into three layers: Vaults (collateral management), Networks (the services being secured), and Operators (the entities running validation). This modularity gives networks complete control over their restaking implementation, including custom slashing logic, collateral requirements, and reward distribution.

The slashing framework shipped in January 2025. A Slasher module sits within each Vault and processes slashing requests from network middleware. It validates that proposed slashing amounts do not exceed allocated stake before interacting with the Vault to burn or redistribute funds. As of mid-2026, mev-commit is one of the few Symbiotic-secured networks with live slashing implemented, having recorded zero slashing incidents across 11 months of operation with 7,813 validators.

Symbiotic has integrated with 50+ networks, 78 operators, and 55 vaults, with over 100,000 users. It holds roughly 5-8% restaking market share.

Karak

Karak, built by Andalusia Labs, positions itself as a "universal restaking layer" that is both asset-agnostic and chain-agnostic. Where EigenLayer is ETH-centric and Symbiotic extends to ERC-20 tokens, Karak supports ETH, LSTs, stablecoins, WBTC, and LP tokens across Ethereum, Arbitrum, and its own Karak L2 network (K2).

Services on Karak are called Distributed Secure Services (DSS), the protocol's equivalent of EigenLayer's AVSs. Operators gather restaked tokens into ERC-4626 vaults and register with DSS platforms of their choice. The same staked tokens can be registered with multiple DSS platforms simultaneously, providing shared economic security.

Karak's K2 Layer 2 serves as a sandbox environment for testing risk management and DSS implementations before deploying to mainnet. The protocol does not yet have a native token. TVL has fluctuated significantly, reaching over $700 million at its peak before declining as the restaking sector consolidated.

Babylon: Bitcoin-Native Restaking

Babylon takes a fundamentally different approach from the Ethereum-based protocols. Instead of restaking ETH derivatives, Babylon enables native BTC staking directly on Bitcoin's Layer 1, with no bridging, wrapping, or third-party custody required. BTC remains on the Bitcoin blockchain at all times.

The mechanism uses Bitcoin Script to create staking transactions with two spending paths: a timelock path (up to ~64,000 blocks, roughly 15 months) and an unbonding path (minimum 1,008 blocks, roughly 7 days). Slashing is enforced through Extractable One-Time Signatures (EOTS): if a Finality Provider signs two conflicting blocks, their private key becomes mathematically extractable, enabling anyone to slash their stake.

Babylon rolled out in three caps during 2024: Cap-1 filled 1,000 BTC in 74 minutes (August), Cap-2 attracted ~23,000 BTC (October), and Cap-3 reached ~57,290 BTC with 135,000 participants (December). The Genesis Phase 2 mainnet launched in April 2025 with 250+ Finality Providers. The BABY token provides additional staking incentives, with 8% annual inflation split between BTC and BABY stakers.

For a deeper look at how Babylon and liquid staking protocols like Lombard work, see our research on Bitcoin restaking with Babylon and Lombard. For broader context on Bitcoin's DeFi ecosystem, see the BTCFi landscape overview.

Yield and Risk Comparison

Restaking yields come from three sources: base staking rewards, service fees paid by the networks being secured, and token incentives (points programs, governance tokens, or protocol emissions). The risk side includes slashing penalties, smart contract bugs, and rehypothecation risk from stacking multiple layers of leverage on the same underlying collateral.

Note: Yield figures are approximate and vary by operator, service selection, and market conditions. Restaking introduces compounding risks: each additional service secured adds both yield and slashing exposure.

Shared Security Models

Restaking protocols are implementations of a broader concept called shared security. Instead of every new network bootstrapping its own validator set from scratch, shared security lets new services inherit economic guarantees from an established staking base.

EigenLayer, Symbiotic, and Karak all implement shared security on Ethereum: services lease security from ETH stakers. Babylon does the same for Bitcoin: its Bitcoin Secured Network (BSN) lets external chains and protocols tap into Bitcoin's multi-trillion dollar economic weight for finality guarantees.

This approach solves a real bootstrapping problem. A new oracle network or data availability layer no longer needs to attract billions in fresh capital to be economically secure. It can rent that security from existing ETH or BTC stakers. The tradeoff is systemic risk: if the restaking layer experiences a cascading slashing event, it could destabilize multiple dependent services simultaneously.

For Bitcoin-focused users who want to explore yield opportunities without leaving the Bitcoin ecosystem, tools like our staking calculator and liquid staking platform comparison can help model potential returns.

How to Choose a Restaking Protocol

The right protocol depends on what assets you hold, your risk tolerance, and what ecosystem you want to participate in.

If you hold ETH or LSTs and want maximum service diversity: EigenLayer is the clear market leader with the deepest AVS ecosystem, highest TVL, and most battle-tested contracts. Its 90%+ market share means operators concentrate there, which drives more service demand and yield opportunities.

If you want flexibility in collateral types: Symbiotic accepts any ERC-20, making it the best option if you hold non-ETH tokens and want to restake them. Its modular vault architecture also appeals to networks that want granular control over their security parameters.

If you want multi-chain, multi-asset restaking: Karak's universal approach supports the widest range of collateral types (including stablecoins and WBTC) across multiple chains. Its smaller size means less liquidity and fewer services, but also less concentration risk.

If you hold BTC and want to stake without leaving Bitcoin: Babylon is the only option for native BTC staking with no bridging or wrapping. The security model relies on Bitcoin Script rather than Ethereum smart contracts, which appeals to Bitcoin-native users who prefer minimizing trust assumptions.

Frequently Asked Questions

What is restaking in crypto?

Restaking is the process of using already-staked assets (like staked ETH) to simultaneously secure additional networks and services beyond the base chain. Instead of staked ETH only validating Ethereum, restaking lets that same capital provide economic security to oracles, bridges, data availability layers, and other infrastructure. Stakers earn extra yield in exchange for accepting additional slashing risk from the services they opt into.

Is restaking safe?

Restaking introduces additional risks on top of base staking. These include slashing by the services you secure, smart contract vulnerabilities in the restaking protocol itself, and rehypothecation risk from stacking multiple yield layers on the same collateral. Each additional service secured compounds the slashing exposure. EigenLayer mitigates this with isolated stake allocation, while Symbiotic uses per-vault slashing boundaries. No major slashing event has occurred across any restaking protocol as of mid-2026, but the mechanisms remain largely untested at scale.

Which restaking protocol has the highest TVL?

EigenLayer holds the dominant position with roughly 90%+ of the Ethereum restaking market. Its TVL peaked above $15 billion in early 2026. Symbiotic follows with approximately $1.6 billion, while Karak's TVL has fluctuated between $100 million and $740 million. On the Bitcoin side, Babylon holds over $4 billion in natively staked BTC. TVL figures change frequently: always check DefiLlama for current numbers.

What is the difference between EigenLayer and Symbiotic?

EigenLayer accepts only ETH and ETH-based liquid staking tokens as collateral, operates a curated AVS marketplace, and uses Unique Stake Allocation for slashing isolation. Symbiotic accepts any ERC-20 token, uses a modular vault architecture that gives networks full control over their slashing and reward logic, and takes a more permissionless approach to onboarding. EigenLayer has the larger ecosystem and deeper liquidity. Symbiotic offers more flexibility in collateral and protocol design.

Can you restake Bitcoin?

Yes. Babylon enables native Bitcoin staking directly on Bitcoin's Layer 1 using Bitcoin Script timelocks and EOTS (Extractable One-Time Signatures). BTC never leaves the Bitcoin blockchain: there is no bridging, wrapping, or third-party custody. Stakers earn BABY token rewards and contribute to the security of Babylon's Bitcoin Secured Network. Liquid restaking protocols like Lombard (LBTC) add a DeFi layer on top, issuing receipt tokens that can be deployed across Ethereum and other chains.

What are Actively Validated Services (AVS)?

AVSs are external services that lease economic security from EigenLayer's restaked ETH. Examples include EigenDA (data availability for rollups), oracle networks, cross-chain bridges, and AI verification services. Each AVS defines its own validation tasks, slashing conditions, and reward structures. Operators choose which AVSs to secure based on their risk and return preferences. Symbiotic calls its equivalent "Networks" and Karak calls them "Distributed Secure Services" (DSS).

How does restaking relate to liquid staking?

Liquid staking gives you a transferable token (like stETH or rETH) representing your staked ETH. Restaking takes those liquid staking tokens and uses them as collateral to secure additional services. Liquid restaking tokens (LRTs) add another layer: protocols like EtherFi (eETH) or Renzo (ezETH) wrap the restaked position into a new transferable token. Each layer adds yield potential and risk. The base staking yield (3-4%) stacks with restaking rewards (1-6%) but also stacks slashing exposure from multiple services.

This tool is for informational purposes only and does not constitute financial advice. TVL figures, yield rates, and protocol details are approximate and based on publicly available information as of mid-2026. Restaking involves compounding risks including slashing, smart contract vulnerabilities, and rehypothecation. Always verify current data on protocol dashboards and conduct your own research before staking or restaking any assets.