On June 18, 2024, Kiln launched EigenLayer restaking for liquid staking tokens directly through the Ledger Live application, giving hardware wallet users seamless access to Ethereum’s restaking economy. With Ethereum trading at $3,483 and Bitcoin at $65,140, the restaking market represents one of the most significant innovations in Ethereum’s economic security model. This advanced tutorial walks you through the architecture, setup process, and risk management considerations for participating in EigenLayer restaking through Ledger Live.
The Objective
EigenLayer enables Ethereum stakers to extend the economic security of their staked ETH to additional protocols called Actively Validated Services (AVS). In traditional staking, your ETH secures the Ethereum network. With restaking, the same staked ETH also secures other protocols—data availability layers, oracle networks, bridge protocols, and increasingly, AI compute networks.
The objective of this tutorial is to walk you through setting up restaking using Kiln’s Ledger Live integration, which launched on June 18, 2024. This method offers clear-signing security through your Ledger hardware wallet, meaning you can verify every transaction on your device’s screen before signing. This is a significant security improvement over browser-based restaking interfaces where blind signing may be required.
Before proceeding, understand that restaking carries additional slashing risk beyond normal ETH staking. If an AVS you are securing is compromised and you are allocated to validate for it, you could lose a portion of your staked ETH. This tutorial covers risk management strategies to mitigate this exposure.
Prerequisites
Before beginning, ensure you have the following:
A Ledger hardware wallet (Nano S Plus, Nano X, or Stax) with the latest firmware updated. Your Ledger device must support the Ethereum application, which you can install through Ledger Live. Your Ledger Live application must be updated to the latest version that includes the Kiln dApp in the Discover section.
You need liquid staking tokens (LSTs) such as stETH (Lido), rETH (Rocket Pool), cbETH (Coinbase), or similar Ethereum-based liquid staking tokens. These tokens represent your staked ETH position and are the assets you will restake through EigenLayer. If you hold native ETH, you must first stake it through a liquid staking protocol to receive LSTs.
A clear understanding of Ethereum transaction gas fees. Restaking involves multiple on-chain transactions, each requiring ETH for gas. Ensure you have sufficient ETH in your wallet—separate from your staked position—to cover these fees. At current gas prices on June 18, 2024, expect to spend approximately 0.01-0.05 ETH across all transactions.
Finally, review the EigenLayer documentation and understand the concept of slashing. Unlike basic ETH staking where slashing is rare and typically results from validator misbehavior, EigenLayer restaking exposes you to slashing risks from each AVS you validate for. This layered risk model is the trade-off for earning additional restaking rewards.
Step-by-Step Walkthrough
Step 1: Open Ledger Live and navigate to the Discover section. Look for the Kiln dApp in the list of available decentralized applications. If you do not see it, ensure your Ledger Live is updated to the latest version—the Kiln integration was added on June 18, 2024.
Step 2: Connect your Ledger device and open the Ethereum application on the device. Verify that blind signing is disabled in the Ethereum app settings on your Ledger. Kiln’s integration supports clear signing, which means you should be able to read and verify transaction details on your Ledger screen before confirming.
Step 3: Within the Kiln dApp, navigate to the “Liquid Restaking” tab. You will see a list of supported liquid staking tokens. Select the LST you currently hold. The interface displays your available balance and the current restaking rewards rate.
Step 4: Enter the amount of LSTs you wish to restake. Consider starting with a portion of your holdings rather than your entire position. This conservative approach limits your exposure while you become familiar with the restaking process and monitor how your restaked assets perform.
Step 5: Review the transaction details on your Ledger device screen. Verify the contract address, the amount being deposited, and the gas fee. Confirm the transaction on your Ledger device by pressing both buttons simultaneously when prompted.
Step 6: Wait for the transaction to be confirmed on Ethereum. This typically takes 1-3 block times (approximately 12-36 seconds). Once confirmed, your LSTs are now restaked through EigenLayer via Kiln.
Step 7: Monitor your restaking position through the Kiln dashboard in Ledger Live. You can track your deposited amount, accumulated rewards, and the AVS protocols your restake is securing. Review this regularly to ensure you are comfortable with the risk profile of the protocols your assets support.
Troubleshooting
If the Kiln dApp does not appear in Ledger Live, check your app version and region settings. Some dApps may have geographic restrictions. Try restarting Ledger Live after updating to the latest version.
If your Ledger device does not display transaction details (showing only ” blind signing required”), you may have blind signing enabled. Disable it in the Ethereum app settings on your Ledger device and try again. Clear signing is a security feature—do not bypass it.
If transactions fail with “insufficient gas,” ensure you have enough ETH (not LSTs) in the same wallet to cover gas fees. LSTs cannot be used to pay for gas—you need native ETH.
If your restaked balance does not appear immediately in the dashboard, wait a few minutes for the interface to sync with on-chain data. EigenLayer’s delegation system may take some time to reflect your position.
Mastering the Skill
Advanced restakers should focus on several areas to optimize their strategy. First, diversify across multiple LSTs rather than concentrating in a single liquid staking token. Different LSTs carry different risk profiles based on their underlying staking infrastructure.
Second, actively monitor the AVS landscape. New AVS protocols join EigenLayer regularly, and your restaked assets may be allocated to secure different services over time. Understanding which AVS you are securing—and their specific slashing conditions—is essential for risk management.
Third, consider the reward-to-risk ratio carefully. Restaking yields are typically higher than basic staking returns, but the additional yield comes with additional risk. Calculate whether the extra 1-3% annual yield justifies the incremental slashing exposure.
Fourth, stay current with EigenLayer protocol upgrades. The restaking ecosystem is evolving rapidly, with new features like programmable slashing, AVS-specific reward mechanisms, and improved delegation strategies being developed. Following the EigenLayer community and Kiln’s blog will keep you informed of changes that affect your position.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Staking and restaking involve risks including potential loss of staked assets. Always conduct your own research and consult with qualified professionals before participating in staking protocols.
clear-signing on ledger for restaking is a huge quality of life upgrade. no more blind signing nightmares
kiln making restaking accessible through ledger is great but the real risk is people opting into every AVS without reading slashing conditions. free yield isnt free
exactly. the yields come from somewhere and that somewhere is risk. people treating restaking like staking are gonna learn the hard way
slasher_zero the UX problem is real. Ledger shows you 12 checkboxes for AVS options and most people just tick all of them. one bad AVS and your entire restaked position is gone
kiln ledger integration is nice but slasher_zero is right, the UX makes it too easy to just click accept on every AVS. needs a big warning not a checkbox
yield_otter_ the clear signing is great but kiln takes a cut on top of the AVS risk. people should do the math on actual net yield after fees and slashing probability
This tutorial is solid but skips over the part where you need to understand each AVS slashing conditions before opting in. That is the part that actually matters.
Tomas is right. the AVS slashing risk is the entire ballgame. one bad opt-in can wipe out your restaked position
exactly. people are gonna restake because the yields look good and then get slashed on some AVS they never researched. seen this movie before
tomas pointed out the slashing risk but people should also consider correlation risk. if multiple AVS share validator sets one slashing event cascades
correlation risk is the sleeper issue here. one AVS slashing event takes down everyone who opted into the same validator set across multiple protocols
Mika H. the correlation risk point cannot be overstated. one AVS slashing event hitting shared validator sets could cascade through 5-6 protocols simultaneously. people are treating restaking like free money