Restaking protocol Symbiotic has announced its official launch after it secured $5.8 million in funding from Paradigm and cyber.Fund. The protocol might be the newest player in the area of blockchain security. That is, according to the claims that it offers solutions aimed at transforming how user deposits can contribute to the security of various blockchains.
Restaking Protocol Symbiotic to Offer a Flexible Approach to Blockchain Security
In a bid to join the fight against common blockchain security concerns, Symbiotic is introducing what it calls a shared security model. Similar to EigenLayer, the first restaking protocol on Ethereum, Symbiotic focuses on optimizing existing staking capital and infrastructure. However, its modular design allows it to take a more flexible approach.
Symbiotic sets itself apart in two ways. Firstly, unlike EigenLayer, which focuses on ETH and specific derivatives, it offers support for multiple tokens. That is, the protocol allows users to deposit a wider range of ERC-20 tokens as collateral, potentially increasing its appeal and user base, and protocol inflows.
Additionally, it also offers configurable rewards and penalties. This means that it empowers third-party protocols with more control over their security setups. As a result, these protocols can customize aspects like supported assets, reward structures, and even penalty mechanisms (known as slashing) for node operators.
This level of customization allows Symbiotic to adapt to various blockchain projects at different maturity levels. According to the protocol, it has already garnered interest from several projects, including Ethena, Chainbound’s Bolt, and Marlin’s Kalypso, among others.
Race for Security
Symbiotic enters a space already occupied by successful protocols like EigenLayer. As of June 2024, EigenLayer boasts a significant total value locked (TVL) of nearly $20 billion. Despite the seemingly unbreakable dominance, however, Symbiotic’s focus on flexibility and multi-token support positions it as a potential strong competitor.
For what it’s worth, the launch of Symbiotic signifies a growing focus on improving blockchain security through innovative solutions. As more projects integrate Symbiotic and similar protocols, there is bound to be a significant improvement to the overall security of the blockchain ecosystem.
