Author: William M. Peaster, Bankless; Translated by: Baishui, Golden Finance
EigenLayer changed the game by introducing restaking primitives to the Ethereum ecosystem, but it’s only a matter of time before challengers rise up and start trying to beat EigenLayer at its own game!
The latest challenger to make some noise is Symbiotic, a new restaking protocol that aims to provide restakers with more options besides ETH.
In this article, we’ll walk you through Symbiotic’s great idea and then show you how to make your first deposit.
What is Symbiotic?
Launched in June 2024, Symbiotic is a shared security protocol for network builders to create and manage their own staking implementations in a permissionless manner.
In other words, Symbiotic allows networks to customize their staking processes, collateral types, node operator selection, rewards, and slashing mechanisms, while maintaining security through non-upgradeable core contracts on Ethereum.
It is worth noting that Symbiotic is already the second largest re-staking protocol after EigenLayer. However, unlike EigenLayer, which is ETH-centric, Symbiotic offers a wide range of staking options for greater flexibility.
How does Symbiotic work?
Symbiotic operates by coordinating its five pillars. These elements are as follows:
Collateral — On-chain assets used to provide economic security in Symbiotic. These can include ERC20 tokens, Ethereum validator withdrawal vouchers, and other assets across various blockchains.
Vaults — These customizable components act as the delegation and restaking layer for Symbiotic. They handle deposits, withdrawals, slashing, and reward distribution.
Operators — Entities that run the network infrastructure, such as validators and sequencers. Operators can choose to join the network and receive financial support from re-stakers through the Vault.
Resolvers — These are entities or smart contracts responsible for approving or vetoing slashing penalties incurred by operators. They ensure that penalties are arbitrated fairly.
Networks — Protocols that require decentralized infrastructure to provide services such as transaction ordering, data consensus, and protocol automation. Symbiotic allows network builders to manage the onboarding, incentives, and penalties of operators and their delegators.
Why can Symbiotic compete with EigenLayer?
It makes sense that there won’t be just one winner in the restaking category. Of the many contenders, Symbiotic currently looks like the protocol most likely to give EigenLayer a run for its money in the coming months.
That being said, if you are optimistic about restaking in general, then Symbiotic is a project worth considering as it is in its early stages, has a bright future, and has a lot of potential to grow through ERC-20 support.
Of course, the Symbiotic airdrop is also a possibility that can’t be ignored. EigenLayer owns EIGEN, and it seems inevitable that they will use the Symbiotic Points system to provide airdrops of native tokens to early users in a similar manner. Stake now; get paid later.
Finally, there are some interesting Symbiotic integrations going live today that offer a double whammy of earning opportunities. One of them is Mellow, a liquid restaking token (LRT) project that offers Mellow Points and Symbiotic Points to users who deposit Symbiotic through its platform.
How to re-stake on Symbiotic?
If you are interested in restaking on Symbiotic, please go to https://app.symbiotic.fi/restake and connect your wallet. Please note that some regions cannot access the frontend due to geo-restrictions.
On the main Restake page, you will see a list of vaults to offer, as shown below. Note that some vaults, such as the Wrapped Lido Staked Ether (wstETH) vault, have currently reached their temporary deposit limits, while others, such as the Coinbase Wrapped Staked Ether (cbETH), are still open to depositors.
Let’s say you have some cbETH and you want to start staking. Simply click on the cbETH vault and it will take you to the following interface:
At this point, you simply enter your desired deposit amount and complete the subsequent transactions to begin re-staking. You can withdraw funds through the same interface, or track your deposits and points through the dashboard page if you wish.
Note that if you’re interested in doubling your points by restaking with Mellow, the deposit process is pretty much the same. Select your vault, enter the desired deposit amount, complete the transaction, and your points will flow.
As the restaking ecosystem grows, protocols like Symbiotic can significantly impact how cybersecurity and economic incentives are managed throughout the crypto-economy.
With its modular design and support for ERC-20 collateral, Symbiotic challenges existing re-staking paradigms and opens up new avenues for innovation and flexibility.
How will Symbiotic’s approach impact other protocols, and what new opportunities will its capabilities open up? We’ll just have to wait and see, but in the meantime, this is a project worth keeping an eye on and trying!
