EigenLayer allows ETH stakers to 'restake' their assets to secure additional services called AVS (Actively Validated Services). You stake ETH with Ethereum validators as normal, but also commit to validating other protocols. In return, you earn extra rewards. However, if you misbehave, you can be slashed by both Ethereum and the AVS you're securing.

Restaking adds additional slashing risks—if AVS you've opted into detect misbehavior, your staked ETH can be slashed. There's also smart contract risk in EigenLayer itself and complexity in understanding all the services you're securing. Start with reputable operators and AVS, and don't restake more than you're willing to potentially lose.

LRTs (like eETH from ether.fi, ezETH from Renzo, rsETH from Kelp) represent restaked positions in liquid form. Instead of restaking directly, you deposit ETH with an LRT protocol that restakes on your behalf. You receive a liquid token you can use in DeFi while earning restaking rewards. LRTs simplify the restaking experience.

AVS (Actively Validated Services) are protocols secured by EigenLayer restakers. Live AVS include EigenDA (data availability), Brevis (zkCoprocessor), Lagrange, and others. More are launching regularly. Each AVS has its own reward structure and risk profile. As a restaker, you can choose which AVS to secure through your operator.

EIGEN is EigenLayer's governance token that can also be staked. Its unique feature is 'intersubjective staking'—it can be slashed for faults that require social consensus to detect (unlike objective on-chain slashing). EIGEN stakers essentially backstop the system against attacks that can't be algorithmically proven.