EigenLayer is a middleware protocol on Ethereum that introduced the concept of restaking, a mechanic enabling the use of staked ETH in multiple networks and protocols simultaneously. Combined with the increased security for protocols and additional yields for stakers, this sparked widespread interest in EigenLayer and restaking in general.
Mainly, EigenLayer enables users to restake Liquid Staking Tokens (LSTs) and staked ETH with operators for Actively Validated Services (AVSs), which means they can earn multiple rewards on top of the rewards they get for staking ETH in the first place.
EigenLayer currently offers restaking for 12 LSTs, and Everstake oversees delegation in each. Learn more about these LSTs, including dedicated how-to guides via this link.
This particular guide, however, explores sfrxETH, the liquid staking token of Frax.
What Is sfrxETH?
The Frax protocol relies on decentralized stablecoins and subprotocols that support them. There are three of those stablecoins: FRAX, FPI, and frxETH.
Aside from them, there is also sfrxETH, which is a vault accruing the staking yields of the Frax ETH validators. Users can exchange their stablecoin frxETH for sfrxETH at any moment by depositing it into the sfrxETH vault. As rewards accrue, the system mints the equivalent amount of frxETH and adds it to the vault, which increases the amount of sfrxETH that users can redeem compared to what they originally deposited.
With the launch of EigenLayer Stage 2 mainnet, users can also restake and delegate sfrxETH with any of the AVSs currently running on EigenLayer, delegating it to Everstake.
How to Restake Frax’s sfrxETH on EigenLayer
Restaking Frax’s liquid staking token sfrxETH on EigenLayer is fairly simple but takes several steps. This section will take you through all of them.
- Obtain sfrxETH as instructed by Frax's website.
- Having obtained sfrxETH, go to the EigenLayer app and connect your wallet as prompted by the interface. You can choose from MetaMask, Coinbase Wallet, OKX Wallet, and Wallet Connect.
- Once connected, you’ll see a dashboard with your restaked and delegated ETH or LSTs. Therein is a button, Restake Your Tokens, which you’ll have to hit to proceed.
- You will be offered several choices, including liquid staking tokens and native restaking of staked ETH.
Hit Frax Staked Ether to access the next screen for depositing and unstaking sfrxETH.
- Specify the amount of sfrxETH you wish to deposit, check everything is correct (including the address), hit Deposit, and then confirm and sign the transaction.
- Once the transaction is successful, you’ll see a pop-up message in the lower right corner of the screen confirming the deposit was successful.
- Then you can go to the Dashboard, where you’ll be able to see your restaked sfrxETH tokens in the Restaked section.
- Head over to the Operator tab in the top section of the screen. On this tab, you can see a selection of operators available for delegation.
- We’ll delegate to Everstake in this example. Enter “Everstake” in the search bar or go directly to our profile on EigenLayer to delegate.
- Hit Manage, as shown in the screenshot above, and then Delegate in the right-hand section.
- Approve and sign the transaction in your wallet, and you’re done! You’ll be able to control your stake from the same dashboard.
Why Delegate to Everstake
Thanks to our impressive track record as a multi-chain validator, Everstake was among the first 30 operators hand-picked for EigenDA, the first AVS on EigenLayer, on the Goerli testnet. Everstake has had zero slashing events on Ethereum, developed the first non-custodial non-liquid pooling solution for Ethereum, and created numerous infrastructural services for other blockchains like Solana and Cosmos.
Certified as a Verified Operator by StakingRewards, Everstake services over 735 thousand users across 70+ blockchains, offering industry-grade security, reliability, and support. By choosing Everstake, you can be assured that you’re getting access to top-notch services run by seasoned professionals, all for some of the best conditions on the crypto market today.
Final Remarks
Restaking and delegation provide many new opportunities for regular users and crypto projects alike. While users can enjoy increased yields (this will be enabled in Q3 2024) and enhanced liquidity, projects can leverage higher levels of security and decentralization and increased participation from broader audiences.
Since restaking is a relatively new concept, more AVS will join the fray soon. Still, its appeal to the community of delegators and developers is so high that it is likely that the selection will become much broader in no time, and Everstake will be happy to support the best of them.
Why not restake your sfrxETH now?
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