Symbiotic, a newly launched Ethereum restaking platform, has quickly gained traction in the crypto community. Supported by Paradigm and the founders of Lido, Symbiotic aims to enhance security through liquidity for services built on its protocol.
This new platform facilitates coordination between users and services, providing a robust framework for restaking.
Symbiotic just launched – here’s what you need to know👇@symbioticfi has emerged as a new Ethereum restaking platform, supported by @paradigm and the founders of Lido. pic.twitter.com/T0MSbedDHs
— IntoTheBlock (@intotheblock) June 12, 2024
Symbiotic vs. Eigenlayer
Earlier this year, Eigenlayer made headlines with its total value locked (TVL) soaring to over $12 billion in just a few months, now standing at $18.5 billion. While Eigenlayer has set a high bar, Symbiotic introduces several unique features that set it apart.
Unique Features
1. ERC-20 Collateral: Currently limited to Liquid Staking Tokens (LSTs), Symbiotic plans to allow any ERC-20 token as collateral. This flexibility offers users more options compared to Eigenlayer.
2. Vaults: Symbiotic’s vaults manage the delegation of assets to services, functioning as staking pools. While similar to Eigenlayer’s system, Symbiotic offers unique design variations that enhance functionality.
3. Resolvers: These entities validate slashing events, ensuring the network’s integrity and fairness. Symbiotic’s resolver system is distinct and innovative compared to Eigenlayer’s slashing mechanism.
Strategic Partnerships
Symbiotic has secured significant partnerships, sparking discussions about potential “restaking wars.” Key partners include:
- LayerZero
- Ethena
- Marlin
- Lido
Symbiotic’s strong connection with Lido could mean no caps on potential airdrops for stETH depositors, potentially channeling this untapped market into Symbiotic’s restaking protocol, providing a viable alternative to Eigenlayer’s ETH-focused LRT protocols.
New LRT Designs
The launch of Symbiotic also introduces new LRT designs. For instance, Mellow Protocol’s LRT system allows risk managers to create custom LRTs within the Symbiotic ecosystem, offering tailored solutions to enhance security and functionality.
In summary, Symbiotic’s innovative features, strategic partnerships, and robust design position it as a formidable player in the Ethereum restaking space, offering a compelling alternative to existing platforms like Eigenlayer.
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.