Restaking Wars
The restaking wars intensified in 2025 as EigenLayer extended its lead while new rivals Symbiotic, Karak, and Bitcoin-native Babylon pushed hard on flexibility, multi-asset support, and differentiated security models. If you’re a restaker, operator, or AVS (Actively Validated Service) team, your best choice depends on assets you hold (ETH vs. BTC and others), the slashing model you accept, reward design, and tooling maturity.
EigenLayer still dominates in ETH restaking and AVS breadth; Symbiotic sprints on permissionless, asset-agnostic design; Karak courts multi-chain and universal security; and Babylon opens a parallel front with native BTC staking. babylonlabs.io+5DeFi Llama+5validator.info+5
Note on data
Where exact volumes vary across dashboards, we cite sources and use conservative phrasing (e.g., “≈” or “reports indicate”). Always verify live before financial decisions.
Why “restaking” became the 2025 meta
Restaking lets stakers reuse their economic security to validate multiple networks or middleware (AVSs), increasing capital efficiency and diversifying rewards. On Ethereum, EigenLayer pioneered the concept; competitors now extend it across assets and chains. The market matured through 2024–2025 with AVS mainnet launches, slashing design upgrades, and expanding operator sets.
Snapshot: The state of the restaking wars in late 2025
EigenLayer
Continued TVL highs during 2025 and the broadest AVS catalog, with public trackers showing millions of ETH restaked and dozens of live AVSs. Rewards/slashing iterations (e.g., discussions around Rewards v2 and ELIP changes) progressed in early 2025.
Symbiotic
Mainnet matured in 2025 with external rewards support and an explicitly permissionless, asset-agnostic model. Multiple posts and exchanges report rapid TVL growth post-launch and strong VC backing.
Karak
Pitched as universal restaking across assets, with V1→V2 upgrades through late 2024 and broader positioning in 2025. Narrative focuses on cross-ecosystem security and DSS (Distributed Secure Services).
Babylon (BTC)
2025 mainnet phases turned native Bitcoin staking into reality no wrapping, self-custodial flows, plus vaults and multi-staking plans. Babylon reports sizable staked BTC and institutional integrations. This is an adjacent front in the restaking wars expanding shared security beyond ETH.
EigenLayer: the incumbent to beat
Positioning
The de-facto hub for ETH restaking and AVS experimentation. Launch waves in 2024 led to AVSs such as EigenDA, eoracle, Hyperlane, Witness Chain, Lagrange, and others gaining meaningful restaked value by 2025. Trackers show dozens of AVSs and significant ETH restaked (native + LSTs)
Why teams choose EigenLayer
Distribution + liquidity
Largest pool of ETH restakers and operators.
AVS marketplace depth
From DA layers to oracles, ZK, interoperability, DePIN, and sequencing.
Operator ecosystem
Mature with analytics and monitoring from third parties.
Open questions / risks
Slashing governance
AVSs decide slashing, but operator UX, disclosure, and collective risk management remain active workstreams. Rewards v2 and slashing updates shaped 2025 discussions.
Token/TVL narratives
Reported TVL set new highs in 2025, but token price action didn’t always track fundamentals an increasingly discussed disconnect.
Symbiotic: permissionless and asset-agnostic
Positioning
A thin, flexible coordination layer designed to be permissionless and asset-agnostic, letting networks tailor their (re)staking approach. Backed by major funds and rolling out external rewards in 2025 for sustainable incentives.
Where Symbiotic stands out
Asset flexibility
Not just ETH designed for broader crypto assets (subject to each network’s policy).
Permissionless network building
Teams can source operators and configure economics more freely.
Momentum in 2025
Multiple sources report fast TVL ramp and listings news, though metrics vary by tracker.
Trade-offs
Ecosystem gravity
EigenLayer still commands deeper AVS/operator liquidity, which Symbiotic must continue to attract.
Karak: universal security and multi-asset restaking
Positioning
Karak markets itself as a universal restaking solution, evolving through 2024–2025 upgrades (V2) and encouraging multi-asset restaking and DSS. It aims to optimize returns without relying purely on inflationary emissions.
Strengths
Cross-ecosystem stance
Broader view than ETH-only restaking, with tooling for various networks.
Design messagin
Focus on performance and security across multiple services.
Watch-outs
Adoption curve: Competing against EigenLayer’s density and Symbiotic’s permissionless narrative requires sustained AVS wins and operator traction.
Babylon: the BTC flank in the restaking wars
Positioning
Rather than ETH restaking, Babylon brings native BTC staking to secure PoS systems self-custodially, without wrapping/bridges expanding “shared security” to Bitcoin capital. 2025 updates include vaults and roadmap items (multi-staking, EVM DeFi connectivity)
Why it matters in the restaking wars
New capital base
BTC holders can participate in network security and rewards—potentially dwarfing ETH-only pools if adoption scales.
Institutional angle
Self-custodial, Bitcoin-native flows reduce custody/bridge risks and may appeal to conservative treasuries.
Feature-by-feature: how the contenders compare
| Capability | EigenLayer | Symbiotic | Karak | Babylon (BTC) |
|---|---|---|---|---|
| Core asset focus | ETH (native & LSTs) | Asset-agnostic (configurable) | Multi-asset / universal | BTC (native, self-custodial) |
| AVS marketplace depth | Broadest in 2025 | Growing quickly | Emerging set | Focus on securing PoS with BTC |
| Slashing model | AVS-defined; 2025 updates to rewards/slashing flow discussed | Configurable per network | DSS framing; protocol-level guardrails | BTC timelocks, slashable security constructs |
| Operator tooling | Most mature, many trackers | Expanding | Growing | Dedicated validators/finality providers |
| Differentiator | Liquidity + AVS density | Permissionless, asset-agnostic | Universal security across chains | Bitcoin capital & trust model |
Sources: ecosystem posts and dashboards.
LRTs, strategy managers, and where yield comes from
Liquid restaking tokens (LRTs) like Renzo and platforms like Ether.fi became important distribution rails, directing restaked ETH to AVSs while offering DeFi composability. Institutional inflows and listings news in 2025 highlighted how LRTs amplify EigenLayer network effects, even as competitors integrate with them or build alternatives. (Always confirm program terms and slashing exposure.)
Risks you should model before choosing sides
Slashing scenarios
Understand AVS-specific fault conditions and appeal processes.
Reward sustainability
Incentives can shift; Symbiotic’s 2025 “external rewards” feature is one example of aligning network tokens with operator/staker economics.
Liquidity + exit:
Check unbonding delays, LRT redemption paths, and market depth.
Smart-contract + bridge risk:
Lower for Babylon’s native BTC model (no wrapping), but still requires protocol trust assumptions.
Regulatory/treasury constraints
Some treasuries prefer BTC or ETH only; others can hold AVS or LRT tokens.
Two quick case snapshots (2025)
AVS launching on EigenLayer
A middleware team selects EigenLayer for launch due to operator depth and restaker liquidity. They configure conservative slashing and bootstrap with aligned LRT incentives. Result: faster validator onboarding and early mainnet security at lower cost than spinning up security from scratch.
Institution using Babylon for BTC security
A fund with large BTC reserves wants yield without wrapped assets. Babylon’s self-custodial staking and vault roadmap fits policy; they stake a tranche of BTC to secure a PoS chain and receive native rewards, avoiding bridge risk and maintaining cold-storage workflows.
How to choose your 2025 restaking partner (fast checklist)
Asset starting point
Mostly ETH → start with EigenLayer or Symbiotic; mostly BTC → assess Babylon.
Security posture
Prefer established operator sets and clear slashing docs? EigenLayer leads today; Karak and Symbiotic are improving.
Ecosystem fit
Need DA/oracle/interoperability AVSs right now? EigenLayer has breadth; Symbiotic/Karak may fit specialized needs.
Reward design
Evaluate external rewards (Symbiotic), AVS incentives, and LRT integrations (EigenLayer)
To Sum Up
In 2025, EigenLayer remains the ETH restaking bellwether by TVL, AVS depth, and operator maturity. Symbiotic forces the pace on permissionless and asset-agnostic design, while Karak bets on universal security and cross-ecosystem utility. Meanwhile, Babylon opens a parallel front with native BTC staking, potentially unlocking a much larger capital base if institutional adoption accelerates.
For builders and treasuries, the right choice depends on asset mix, risk appetite, and time-to-market. Expect convergence (shared features) plus specialization (different trust models and assets) to define the next phase of the restaking wars.
CTA
Want a deploy-ready decision matrix (operators, AVSs, slashing settings, and reward models) for your stack? Reach out and I’ll tailor a one-pager for your asset mix and launch timeline.
FAQs
Q : What is “restaking” in simple terms?
A : Restaking lets you reuse your staked capital (e.g., ETH) to secure additional networks or services (AVSs), earning extra rewards while taking on additional slashing risk. It’s a shared-security marketplace instead of every project bootstrapping its own validator set.
Q : How does EigenLayer differ from Symbiotic?
A : EigenLayer emphasizes ETH restaking with the largest AVS and operator networks; Symbiotic focuses on permissionless, asset-agnostic restaking and launched external rewards in 2025. EigenLayer offers greater liquidity today; Symbiotic offers more flexible design choices.
Q : How can Karak compete with EigenLayer?
A : Karak positions as universal restaking across assets with DSS framing. Its path to parity is landing marquee AVSs, operator depth, and compelling economics versus EigenLayer’s liquidity gravity.
Q : How is Babylon related to restaking if it’s on Bitcoin?
A : Babylon enables native, self-custodial BTC staking to secure PoS networks—no wrapped BTC. It broadens shared security beyond ETH and could onboard BTC treasuries that avoid bridges.
Q : How do I assess slashing risk across protocols?
A : Read AVS-specific rules, fault conditions, and appeals; check operator reputation and monitoring; and understand unbonding/liquidity. In EigenLayer, slashing is AVS-defined, with 2025 updates clarifying flows.
Q : How do LRTs like Renzo or Ether.fi fit in?
A : They route restaked ETH toward AVSs, offer liquid receipts for DeFi, and sometimes extra rewards. They can amplify adoption verify program terms and redemption mechanics.
Q : How can I minimize smart-contract/bridge risk?
A : Favor audited, battle-tested components; avoid unnecessary bridges; use native flows where available (e.g., Babylon’s BTC model). Diversify across AVSs and use conservative slashing.
Q : How does operator choice affect yield?
A : Operator performance, fees, and uptime influence rewards and slashing probabilities. Use dashboards and reputation data; note EigenLayer’s depth of operators and analytics.
Q : How do the restaking wars impact developers?
A : More choices for security bootstrapping, faster launch cycles, and tailored economics—but extra complexity in risk and integration. EigenLayer’s breadth, Symbiotic’s flexibility, Karak’s universal pitch, and Babylon’s BTC angle each target different app stacks.