Exclusive Report: Lido Co-Founders Back Ethereum Restaking Protocol Competitor
A recent report unveils that Konstantin Lomashuk and Vasiliy Shapovalov, co-founder of Lido, the leading liquid staking protocol in Ethereum (ETH), are funding a rival of Ethereum’s EigenLayer restaking protocol.
Symbiotic Gains Support
- Symbiotic, the chosen protocol, is set to receive backing from Lido co-founders through the Cyber Fund.
Symbiotic also Gains Support from Paradigm
Additionally, Paradigm, a prominent venture capital (VC) firm in the crypto industry and one of Lido’s major investors, is also backing Symbiotic. The report also mentions that Paradigm initially approached Sreeram Kannan, EigenLayer’s co-founder, for investment but was rejected in favor of Andreessen Horowitz (a16z).
Transition from Lido to EigenLayer
Lido, launched in October 2020, has emerged as a significant player in the decentralized finance (DeFi) sector. It introduced a protocol allowing users to stake their ETH and receive stETH tokens, contributing to its status as Ethereum’s top DeFi protocol with a TVL of $27.28 billion.
EigenLayer Threatens Lido’s Dominance
Despite EigenLayer quickly becoming the second-largest DeFi protocol with a TVL of $14.29 billion, its presence poses a threat to Lido’s position. Consequently, the decision to support Symbiotic may be a strategic move by Lido to retain its edge.
Distinguishing Symbiotic from EigenLayer
Symbiotic’s unique features include its permissionless nature, providing a flexible mechanism for decentralized networks. Users can stake a variety of assets based on Ethereum’s ERC-20 token standard directly into the protocol, allowing compatibility with stETH and other ERC-20 tokens.
- EigenLayer, on the other hand, primarily accepts ETH assets, ETH-linked liquid staking tokens (LST), and native EIGEN tokens.
Future Outlook for Symbiotic
The launch date for Symbiotic remains uncertain. Speculations suggest a potential release by the end of 2024. Restaking continues to be a captivating narrative, with EigenLayer’s restaking significantly contributing to Ethereum’s progress in Q1 2024.
Impact Beyond Ethereum
The appeal of restaking extends beyond Ethereum, as seen with Jito, a liquid staking protocol on Solana, rumored to introduce its restaking services.
Hot Take: Stay Tuned for the Evolution of Restaking
As the competition intensifies in the restaking landscape, keep a close eye on how protocol developments like Symbiotic and EigenLayer unfold, potentially reshaping the future of decentralized finance.
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