Quick answer
Restaking layers yield on top of yield — but each layer potentially creates its own income tax and disposal events.
DeFi & Web3
Australia
Germany
United Kingdom
United States
Restaking
The process of using already-staked assets (like stETH) as collateral in additional staking or DeFi protocols to earn layered yields.
AustraliaGermanyUnited KingdomUnited StatesUnderstanding Restaking on crypto
Restaking is a DeFi mechanism — popularised by EigenLayer on Ethereum — that allows users to stake ETH or liquid staking tokens (like stETH) to secure additional networks or services beyond the base blockchain. By restaking, participants earn additional rewards on top of their base staking yield. From a tax perspective, restaking creates multiple layers of potential taxable events: the original staking income, receipt of liquid staking tokens (potentially a disposal), and additional restaking rewards (income at FMV on receipt). The compounding complexity makes restaking one of the most challenging DeFi activities to report accurately.
Restaking is a DeFi mechanism — popularised by EigenLayer on Ethereum — that allows users to stake ETH or liquid staking tokens (like stETH) to secure additional networks or services beyond the base blockchain. By restaking, participants earn additional rewards on top of their base staking yield. From a tax perspective, restaking creates multiple layers of potential taxable events: the original staking income, receipt of liquid staking tokens (potentially a disposal), and additional restaking rewards (income at FMV on receipt). The compounding complexity makes restaking one of the most challenging DeFi activities to report accurately.
What this means for your crypto activity
Base staking income
Original staking rewards remain taxable income at FMV on receipt.
Protocol deposit may dispose
Depositing stETH into a restaking protocol (EigenLayer, Symbiotic) may be another potential disposal.
AVS rewards are income
Additional restaking rewards (AVS rewards, points) are income at FMV when received.
Points conversion
Points systems with future token conversion may create income events at the conversion stage.
Track gas fees
Gas fees for restaking interactions accumulate and should be tracked as potential deductions.
- Original staking rewards remain taxable income at FMV on receipt.
- Depositing stETH into a restaking protocol (EigenLayer, Symbiotic) may be another potential disposal.
- Additional restaking rewards (AVS rewards, points) are income at FMV when received.
- Points systems with future token conversion may create income events at the conversion stage.
- Gas fees for restaking interactions accumulate and should be tracked as potential deductions.
Seeing it in action
Example scenario
Jake stakes 10 ETH on Lido, receiving stETH. He then deposits his stETH into EigenLayer to earn additional AVS rewards. He receives 0.001 ETH/day in Lido rewards (income) and 0.0005 ETH equivalent in EigenLayer AVS rewards daily (additional income). Each layer of rewards is separately taxable, and the initial deposit of stETH into EigenLayer may itself be a disposal event.
How this works across jurisdictions
- Australia
ATO general principles: restaking rewards are assessable income; each deposit potentially a CGT event.
- Germany
Restaking income taxable as miscellaneous income; holding period rules may be affected by protocol interactions.
- United Kingdom
HMRC staking/DeFi guidance applies; restaking rewards likely miscellaneous income; disposal principles may apply to protocol deposits.
- United States
Restaking rewards are ordinary income at FMV on receipt; each protocol interaction is a potential disposal; general staking income principles apply.
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