Symbiotic is set to launch a modular restaking protocol on Ethereum.
The new staking tool is permissionless and offers flexibility to stakers.
The Symbiotic modular restaking is multichain and can permit any ERC-20 asset.
Symbiotic, a well-known blockchain project, is bringing something new to the crypto world. According to The Block, Symbiotic is launching its modular restaking protocol on Ethereum’s mainnet. This marks the first of its kind to offer permissionless restaking on a major blockchain network.
The platform will allow users to stake their tokens to help secure networks beyond Ethereum. This could change how crypto ecosystems share security and use capital more efficiently, marking a major milestone for the decentralized finance (DeFi) sector.
What is Restaking, and Why Does it Matter?
Restaking is a process that allows tokens staked on one network to be used to secure another network. This process helps improve security across different projects, making the entire system more efficient.
With its latest product, Symbiotic has taken restaking a step further. Unlike other protocols, this restaking model does not limit users to just Ethereum (ETH) or its derivative tokens. Instead, users can restake any ERC-20 token, opening the door for many more projects to get involved.
The idea is to improve the overall capital use in the ecosystem. Symbiotic is designed to make it easier for different networks to connect and secure one another without the usual restrictions other protocols impose.
One of the key features that sets Symbiotic apart is its slashing mechanism. Slashing is a process in proof-of-stake systems that punishes malicious or improper behavior, such as double-signing blocks or excessive downtime. Validators who engage in such actions may lose part of their staked assets.
Symbiotic takes it further by offering a flexible slashing model. Using “vaults,” users can pool their tokens to secure other networks. These vaults come with customizable slashing rules, so each network can choose how to punish bad behavior.
Symbiotic’s design allows for a high level of flexibility. This means projects can build rules without being forced to adopt Symbiotic’s way of doing things. This flexibility is a huge advantage.
The staking platform does not try to impose its views on how the system should work. Instead, it ensures that agreements between networks are respected and enforced.
How Symbiotic is Gaining Traction
Even before the official launch, Symbiotic has attracted the attention of several major projects. More than a dozen protocols are ready to integrate with Symbiotic’s system. Chainbound’s Bolt Network has revealed plans to use Symbiotic to support its pre-confirmation system.
Similarly, Router will leverage Symbiotic to allow Cosmos-based chains to use Ethereum’s security. Other projects like Ethena also want to use Symbiotic for various purposes.
Ethena plans to align different parts of its ecosystem, such as its vaulting token and Decentralized Autonomous Organization (DAO) token, all under one roof.
Symbiotic’s innovative approach has not gone unnoticed. Last June, the protocol raised $5.8 million in seed funding. The round was led by Paradigm and cyber•Fund, two major players in the crypto investment space.
Following the funding round, Coinspeaker reported that the staking platform gained over $1 billion Total Value Locked (TVL) in its smart contract. This rapid rise has positioned the platform as a major player in the restaking market. It could soon challenge EigenLayer, the second-largest DeFi protocol after Lido.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.