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Author: William M. Peaster, Bankless; Compilation: Baishui, Bitchain Vision
EigenLayer changed the game by introducing restaking primitives into the Ethereum ecosystem, but it’s only a matter of time before the Challenger rises and starts trying to beat EigenLayer in his own game!
The challenger that has caused a recent sensation is Symbiotic, a new restaking agreement designed to provide restakingers with more options than ETH.
In this article, we will take you through the great ideas of Symbiotic and then show you how to start 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 license-free manner.
In other words, Symbiotic allows the network to customize its staking process, collateral type, node operator selection, rewards and cut mechanisms while maintaining security through core contracts that are not upgradeable on Ethereum.
It is worth noting that Symbiotic is already the second largest re-staking agreement after EigenLayer.However, unlike ETH-centric EigenLayer, 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:
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Pledge— On-chain assets used to provide economical security in Symbiotic.These can include ERC20 tokens, Ethereum validator withdrawal vouchers, and other assets across various blockchains.
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Vault— These customizable components act as the delegate and resolution layer for Symbiotic.They handle deposits, withdrawals, cuts and reward allocations.
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Operator—Entities running network infrastructure, such as validators and sorters.Operators can choose to join the network and get financial support from republicans through vaults.
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Parser— These are entities or smart contracts responsible for passing or vetoing the cuts incurred by operators.They ensure that punishment is fairly arbitrated.
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network— Protocols that require decentralized infrastructure to provide services, such as transaction sorting, data consensus, and protocol automation.Symbiotic allows network builders to manage onboarding, incentives and penalties for operators and their clients.
Why is Symbiotic able to compete with EigenLayer?
It makes sense that there will not be only one winner in the restaking category.Among the many competitors, Symbiotic currently looks to be the most likely deal to compete with EigenLayer in the coming months.
That being said, if you are optimistic about restaking overall, Symbiotic is a project worth considering because it is in its early stages, with a bright future, and has great potential for development through ERC-20 support.
Of course, Symbiotic airdrop is also a possibility that cannot be ignored.EigenLayer has EIGEN and it seems inevitable that it will use the Symbiotic Points system to provide early users with airdrops of native tokens in a similar way.Now pledge it; get remuneration later.
Finally, there are some interesting Symbiotic integrations coming online today that offer double-hit money-making opportunities.One of them is Mellow, a liquid re-staked token (LRT) project that provides Mellow Points and Symbiotic Points to users who deposit Symbiotic through their platform.
How to re-stake on Symbiotic?
If you are interested in restaking Symbiotic, go to https://app.symbiotic.fi/restake and connect to your wallet.Please note that some areas cannot access the front end due to geographical restrictions.
On the main Resolution page, you will see a list of vaults to be provided, as shown in the following figure.Please note that some vaults (such as Wrapped Lido Staked Ether (wstETH) vaults) currently meet their temporary deposit limits, while others (such as Coinbase Wrapped Staked Ether (cbETH)) are still open to depositors.
Suppose you have some cbETH and want to start staking.Just click on the cbETH vault and it will take you to the following interface:
At this point, you simply enter the required deposit amount and complete the subsequent transaction to start re-staking.You can withdraw funds through the same interface or track your deposits and points via the dashboard page as needed.
Please note that if you are interested in double your points with Mellow re-stake, the deposit process is almost the same.Select your vault, enter the required deposit amount, complete the transaction, and the points will flow.
With the development of the restaking ecosystem, protocols like Symbiotic can significantly impact the management of cybersecurity and economic incentives throughout the crypto economy.
With its modular design and support for ERC-20 collateral, Symbiotic challenges the existing resolution paradigm and opens new avenues for innovation and flexibility.
How will Symbiotic’s approach affect other protocols and what new opportunities will its capabilities bring?We can only wait and see, but at the same time, this is a project worth paying attention to and trying!
