Understanding Symbiotic A Comprehensive Guide to Bankless and Repledging Projects

CoinWorld reported:
Author: William M. Peaster, Bankless; Translation: Baishui
EigenLayer has changed the game in the Ethereum ecosystem by introducing the concept of re-staking, but it’s only a matter of time before challengers rise up and attempt to outperform EigenLayer in their own game!
The recent buzzworthy challenger is Symbiotic, a new re-staking protocol that aims to provide re-stakers with more options beyond ETH.
In this article, we will take you through the great ideas behind Symbiotic and then show you how to make your first deposit.
What is Symbiotic?
Launched in June 2024, Symbiotic is a shared security protocol that allows network builders to create and manage their own staking implementations in a permissionless manner.
In other words, Symbiotic enables networks to customize their staking processes, staked asset types, node operator selection, reward and slashing mechanisms, while maintaining security through non-upgradable core contracts on Ethereum.
It’s worth noting that Symbiotic is already the second-largest re-staking protocol, right behind EigenLayer. However, unlike EigenLayer, which is ETH-centric, Symbiotic offers a wide range of staking options for greater flexibility.
How does Symbiotic work?
Symbiotic operates by coordinating its five main pillars, which are as follows:
Staked assets – These provide on-chain economic security in Symbiotic. They can include ERC20 tokens, Ethereum validator withdrawal credentials, and other assets across various blockchains.
Vaults – These customizable components act as Symbiotic’s delegation and re-staking layer. They handle deposits, withdrawals, slashing, and reward distribution.
Operators – Entities that run the network infrastructure, such as validators and sorters. Operators can choose to join the network and receive economic support from re-stakers through the vaults.
Resolvers – Entities or smart contracts responsible for approving or rejecting slashing penalties incurred by operators. They ensure fair arbitration of penalties.
Network – The protocol that requires decentralized infrastructure to provide services such as transaction ordering, data consensus, and protocol automation. Symbiotic allows network builders to manage the onboarding, incentives, and punishments of operators and their delegates.
Why is Symbiotic considered a worthy competitor to EigenLayer?
It makes sense that there won’t be just one winner in the re-staking category. Among the many competitors, Symbiotic currently appears to be the protocol most likely to challenge EigenLayer in the coming months.
That being said, if you’re optimistic about re-staking overall, Symbiotic is a project worth considering because it’s in its early stages, has promising prospects, and has significant growth potential with ERC-20 support.
Of course, the Symbiotic airdrop is also an opportunity that should not be overlooked. EigenLayer has EIGEN, and it seems inevitable that they will use the Symbiotic Points system in a similar way to airdrop native tokens to early users. Stake now, reap rewards later.
Finally, there are some interesting Symbiotic integrations that have gone live today, offering double opportunities to earn. One of them is Mellow, a liquid re-staking token (LRT) project that provides Mellow Points and Symbiotic Points to users staking through its platform.
How to re-stake on Symbiotic?
If you’re interested in re-staking on Symbiotic, go to https://app.symbiotic.fi/restake and connect your wallet. Please note that the frontend may not be accessible in certain regions due to geographical restrictions.
On the main “Restake” page, you will see a list of vaults available for deposit, as shown in the image below. Note that some vaults, like the Wrapped Lido Staked Ether (wstETH) vault, have reached their temporary deposit limits, while others, like the Coinbase Wrapped Staked Ether (cbETH), are still open to depositors.
Assuming you have some cbETH and want to start staking, simply click the cbETH vault, which will take you to the following interface:
At this point, you just need to enter the desired 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 as needed through the dashboard page.
Note that if you’re interested in doubling your points through Mellow re-staking, the deposit process is almost the same. Choose your vault, enter the desired deposit amount, complete the transaction, and the points will flow.
As re-staking ecosystems like Symbiotic continue to develop, protocols like these can significantly impact the management of network security and economic incentives in the entire crypto economy.
With its modular design and support for ERC-20 assets, Symbiotic challenges existing re-staking paradigms and opens up new avenues for innovation and flexibility.
How will Symbiotic’s approach impact other protocols, and what new opportunities will its features bring? We can only wait and see, but in the meantime, it’s a project worth paying attention to and trying out!