Newly launched restaking protocol Symbiotic reaches $1 billion in total value in just one month

Data from DefiLlama shows that the restaking protocol Symbiotic’s total value locked (TVL) rose to over $313,000 $ETH on July 4, 2024, a 240% increase from its record high of 92,000 ETH.

What is the meaning: The TVL increase shows that more people already trust the platform. (Read more: Restaking Airdrop and Ecosystem Guide: How to Become Eligible)

Driving the news:

• Publication date: Symbiotic was launched on June 11, 2024.
• Attraction for the community: Just hours after launch, Symbiotic’s TVL has risen to over $231 million.
• Funding: Prior to launch, the protocol received backing from investment firms Paradigm and Cyber ​​​​Fund, who funded Symbiotic with $5.8 million.
• Deposit limit: On July 4, the protocol opened staking on wstETH, where after 4 hours the cap of 210,600 wstETH was reached. That’s around $800 million.
• Core opinion: Symbiotic’s milestone of reaching $1 billion with its smart contract in just 23 days is significant, according to one analyst.
• Effect: Since Symbiotic launched, the total value of EigenLayer’s locked assets has dropped by approximately $220,000 ETH.

The big picture:

• In May, Online publication CoinDesk has revealed that internal company documents obtained by it show that the co-founders of liquid staking protocol Lido, along with venture capital firm Paradigm, are secretly helping to fund a restaking protocol.
• The plan is said to have developed the said restaking protocol to compete with EigenLayer, the pioneer of the restaking idea.
• OwnLayer is the second largest decentralized finance (DeFi) in the Ethereum ecosystem next to Lido. However, there are differences: Lido is for liquid staking, while EigenLayer is for restaking.

Between the lines: According to Pavel Yashin, a researcher at P2P.org, Symbiotic’s milestone could encourage EigenLayer users to switch to the platform they use for re-staking assets.

• Because Symbiotic makes it possible Pay money to support third-party protocols using a common security model.
• Users can also re-set using Lido’s Staked Ether (stETH) token and other popular assets that are not natively compatible with EigenLayer.
• Symbiotic also has a customizable design which enables the combination of tokens as reinvestable collateral.
• Finally, many users see the potential of the protocol, because it is designed as a “permissionless restaking protocol that provides flexible mechanisms for decentralized networks to coordinate node operators and economic security providers.”

Key quote:

“Symbiotic can cannibalize the LST portion (especially stETH) of EigenLayer’s TVL.”

Pavel Yashin, P2P.org researcher

Worth reading: Learn more about the technical details of how Symbiotic works here.

Partnerships: Although EigenLayer is far more gigantic than Symbiotic in terms of TVL, the latter is now working with big names in the DeFi industry.

• On the day of launch The Restaking Protocol partnered with Lido, which launched Restaking Vaults that allowed Lido stETH holders to re-stake their Liquid Staking tokens.
• Over and beyond, Symbiotic has also partnered with restaking platforms Swell Network, EtherFi and Renzo, which have a combined TVL of more than $11 billion.
• It has also colored a collaboration with yield tokenization platform Pendle Finance with nearly $3.7 billion in TVL.
• However, It should be noted that Swell Network, EtherFi, Renzo and Pendle Finance also have partnerships with Eigenlayer.

What you should see: The emerging competition between EigenLayer and Symbiotic on which restaking protocol is better in terms of incentives can drive progress in the restaking industry in terms of compatible assets and rewards.

• Currently, restaking does not yield any income, only points and airdrops.

Sources: Unchained, Coindesk, BeInCrypto

This article was published on BitPinas: Newly launched restaking protocol Symbiotic hits $1 billion in total value locked in just one month

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