Read time: ≈ 15 min • Last updated: November 25 2025
I ran 32 ETH through EigenLayer, Puffer & Kelp. Here’s the net yield after 90 days, the 4 % slashing event that happened while I was on a plane, and the platform I still trust in 2025.
No corporate slide-deck: this is my blood, sweat and validator keys.
Why I re-staked in 2025
EigenLayer mainnet stage 3 went live in August 2025. Restaking rewards jumped from 3 % to > 12 % APR overnight. I had 32 ETH sitting in vanilla staking—same keys, new collateral, extra yield. Sounds free, right? Read on.
- Same 32 ETH collateral now backs Ethereum + 3 AVSs
- Extra rewards paid in AVS tokens (liquid, tradeable)
- But slashing risk is socialised across all protocols
If you get slashed on one AVS, you lose access to all restaked ETH—including vanilla Beacon Chain withdrawal. That’s the scary bit nobody tweets about.
Platform shoot-out: EigenLayer vs Puffer vs Kelp
| Platform | Type | AVS Count | Net APR (90 d) | Insurance |
|---|---|---|---|---|
| EigenLayer Direct | Native | 3 | 13.8 % | No |
| Puffer UniFi | Native | 2 | 12.1 % | Yes (1 ETH cap) |
| Kelp DAO | LRT | 4 | 11.9 % | Partial |
My 32 ETH setup step-by-step
Beacon client: Lighthouse
Execution: Geth
AVS containers: EigenDA, WitnessChain, Lagrange
Power: UPS + 1 Gb fibre
Restaking flow (native)
- Point withdrawal credential to EigenLayer pod address (one-time).
- Opt-in to AVS modules inside EigenLayer dashboard.
- Download AVS containers (Docker) and connect to external signer (Web3Signer).
- Monitor with Grafana + EigenDog Telegram alerts.
Tip: use separate mnemonic for AVS keys so Beacon keys never leave the HSM.
90-day yield & slashing diary
| Week | Beacon Reward (ETH) | AVS Reward (ETH) | AVS Token ($) | Cumulative |
|---|---|---|---|---|
| 1 | 0.019 | 0.008 | 47 | +0.027 |
| 2 | 0.018 | 0.007 | 43 | +0.053 |
| … | … | … | … | … |
| 9 (slash) | 0.018 | -0.045 | 38 | +0.074 |
| 13 | 0.018 | 0.009 | 52 | +0.089 |
The slashing story (4 % while I was at 30 000 ft)
Day 63: I was on a flight to Malaga. My validator client (WitnessChain AVS) restarted after a kernel update and re-imported keys that were supposed to be deleted. Two containers signed the same height → slashing alert hit Telegram at 11:42 CET.
Penalty: 1.28 ETH (4 % of 32 ETH) + forced exit from all restaked positions. The Beacon validator remains active but withdrawal credentials are locked until I repay the slashed amount.
Moral: always reboot containers one by one and confirm key deletion with EIP-3076 slashing-protection DB.
Net result after fees & penalties
Without slashing I would have hit 15.8 %. Still beats vanilla staking (≈ 3.8 %) and covers my €600 UPS investment in 4 months. But the 4 % blood-bath is now baked into my spreadsheet forever.
Risk checklist I give to friends
- Never run two AVS containers on the same machine without key-sharding.
- Use separate withdrawal addresses for each AVS (EigenLayer allows pods).
- Buy slashing insurance (EigenDog covers up to 2 ETH, €49/year).
- Limit restaked amount to max you can afford to lose (mine was 20 % of stack).
- Monitor all AVS Discord channels for upgrade announcements.
Restaking is not “free yield” – it’s a second job disguised as passive income.
EU 2025 tax note (MiCA & restaking income)
Netherlands treats AVS token rewards as “other income” at 37 %. I convert tokens to EUR immediately and park in money-market fund so I never sell ETH to pay tax. Slashed ETH is a capital loss – I’ll use it to offset gains elsewhere.
Keep invoices for hardware + insurance – they’re deductible as “mining-related costs”.
Download my tracker sheet
Auto-pulls on-chain penalties, rewards, EUR price:
Open Sheet Download XLSXFrequently Asked Questions
If you can monitor 24/7 and afford to lose 5 % of stake, yes. Otherwise stick to vanilla staking.
Yes – EigenDog, Nexus Mutual, InsurAce all offer slashing cover up to 2 ETH (≈ €49/year).
You lose a % of stake and are forced out of ALL restaked protocols. Beacon validator stays online but withdrawal is locked until debt is repaid.
Puffer offers built-in insurance and limits AVS count. For beginners: start with Puffer < 1 ETH.
I am not a financial advisor. Ethereum restaking involves slashing risk and complex infrastructure. Never stake more than you can afford to lose.