Bankless: Understanding Symbiotic, the re-staking project

Author: William M. Peaster, Bankless; Translator: 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 their own game!

The challenger that has recently made a splash is Symbiotic, a new restaking protocol that aims to provide restakers with more options besides ETH.

In this article, we’ll walk you through the great idea of ​​Symbiotic and then show you how to make your first deposit.

What is Symbiotic?

Symbiotic, launched in June 2024, 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 centered on ETH, 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 re-collateralization layer of Symbiotic. They handle deposits, withdrawals, slashing, and reward distribution.

• Operators — Entities that run the infrastructure of the network, 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 the 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 Symbiotic Could Give EigenLayer a Run for Its Money?

It makes sense that there won’t be just one winner in the re-staking 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’re optimistic about restaking in general, then Symbiotic is a project worth considering as it’s early-stage, has a bright future, and has a lot of potential to grow with ERC-20 support.

Of course, a Symbiotic airdrop is also a possibility that can’t be ignored. EigenLayer owns EIGEN, and it seems inevitable that they’ll use the Symbiotic Points system to offer airdrops of the native token to early users in a similar fashion. Restake now; get paid later.

Finally, there are some interesting Symbiotic integrations going live today that offer a double-whammy of money-making opportunities. One of these 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 re-staking 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 geographical restrictions.

On the main "Re-stake" page, you will see a list of vaults to be offered, as shown in the image 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), remain 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 a screen like this:

At this point, you simply enter your desired deposit amount and complete the subsequent transaction to begin restaking. You can withdraw funds through the same interface or track your deposits and points through the dashboard page as needed.

Please note that if you are interested in doubling your points through Mellow restaking, the deposit process is almost identical. Select your vault, enter your desired deposit amount, complete the transaction, and your points will flow.

As the re-staking ecosystem grows, protocols like Symbiotic can significantly impact how network security and economic incentives are managed across the cryptoeconomy.

With its modular design and support for ERC-20 collateral, Symbiotic challenges existing re-staking paradigms and also opens up new avenues for innovation and flexibility.

How will Symbiotic’s approach impact other protocols, and what new opportunities will its functionality enable? We can only wait and see, but in the meantime, this is a project worth keeping an eye on and trying!