Author: Jack Inabinet, Bankless; Translated by: Deng Tong, Golden Finance
Bulls who bought back in wondered what would happen next.
In Bankless Airdrop Hunter, our analysts have been researching promising tokenless restaking protocols, focusing on both liquidity restaking token projects built around EigenLayer and more ambitious competitors attempting to directly overthrow EigenLayer’s core position.
EigenLayer’s EIGEN has not been well received by the crypto community, and while recipients wait for their staked tokens to unlock, depositors are actively looking for new opportunities. While Karak Network’s multi-chain solution has gained some momentum since the release of EIGEN, there has been considerable hype about Lido’s backdoor entry into the space via Symbiotic, a new re-staking protocol backed by Lido’s founders.
Below, let’s dive into the 5 restaking ecosystem protocols we’re looking at.
Symbiotic
Introduction:
Symbiotic is a new staking service for a variety of on-chain assets, not just LST, backed by the founder of staking heavyweight Lido. Positioned as a competitor to EigenLayer, Symbiotic aims to leverage its close ties to Lido’s inner circle and the backing of major industry players. The protocol started with $5.8 million in seed funding raised from venture capital firm Paradigm and Cyber.Fund, the investment firm of Lido’s founder.
Why you should care:
Recently launched Lido partner and Paradigm-backed EigenLayer competitor has a points program to gain traction in the restaking space. As with all points campaigns, these points will likely be eligible for redemption for tokens at some point in the future. Additionally, the market reaction to the EigenLayer token launch provides a great opportunity for competing restaking protocols to launch more attractive campaigns.
Mellow Protocol
Introduction:
Mellow Protocol provides a modular and permissionless infrastructure for Liquidity Restaking Tokens (LRT) on any staking protocol, allowing users to choose their risk level through curated vaults. Mellow's vision is aligned with Symbiotic's, enabling true permissionless restaking flexibility. In addition, as a partner of the Lido Alliance, Mellow helps Lido operators launch their own LRT, improve the usability of stETH and increase revenue for Lido DAO members.
Why you should care:
Mellow Protocol was launched alongside Symbiotic (a new Paradigm-backed EigenLayer competitor in partnership with Lido) as a restaking project in its ecosystem. Currently, Mellow is running a points program to incentivize depositors of Mellow and Symbiotic, which means they will be converted into liquidity token allocations in the future.
Karak Network
Introduction:
Karak Network is a multi-collateral re-staking layer that allows users to re-stake various assets on multiple chains to increase returns. Karak L2 provides a secure environment for developing and launching distributed services.
Why you should care:
Karak has an active points program that rewards depositors with Karak XP during private visits! Projects often implement points systems as a precursor to airdrops to help identify accounts that have contributed to their success, with the intention of rewarding them with tokens later on.
Puffer
Introduction:
Puffer is a decentralized native liquidity re-staking protocol built on EigenLayer. As a permissionless protocol, Puffer will allow anyone to join as a node operator with a minimum bond of 1 ETH.
To align incentives and ensure performance among node operators, Puffer will also require validators to hold “validator tickets,” a consumable that expires daily and can be purchased from Puffer at a price equal to the validator’s expected daily revenue or on the secondary market. Since validators consume validator tickets every day they stake, they are entitled to 100% of the rewards.
Why you should care:
Protocols often employ a points system to recognize accounts for their contributions to their success in order to reward them with tokens in the future, and Puffer is currently running a points program, suggesting it may airdrop tokens to early depositors in the future. In addition, users who earn pufETH through staking are eligible for point allocations from partner projects, including the upcoming AI-driven DePIN rollapp Rivalz and Ethereum L3 Olive.
KelpDAO
Introduction:
KelpDAO uses EigenLayer to re-stake your liquidity staking tokens (stETH and ETHx) for liquidity staking rsETH. By staking your ETH to KelpDAO, you will be eligible for EigenLayer re-staking points (once your deposit is staked), and be able to earn additional yield by re-staking when the service goes live!
Since retakes using KelpDAO retain liquidity on their stake, they can use rsETH in DeFi protocols to earn additional yield.
Why you should care:
Depositors in KelpDAO will be rewarded with “Miles,” the protocol’s equivalent of points. Projects often implement a points system as a precursor to an airdrop to help identify accounts that have contributed to its success, with the intention of rewarding them with tokens later.
