New Symbiotic Collateral Agreement Launched Backed by Investments from Paradigm and cyberFund

New Symbiotic Collateral Agreement Launched Backed by Investments from Paradigm and cyberFund

New Symbiotic Collateral Agreement Launched Backed by Investments from Paradigm and cyberFund

The Symbiotic re-staking agreement was officially launched on Tuesday (11th), and the agreement also announced the completion of a $5.8 million seed round financing led by venture capital firms Paradigm and cyber.Fund.

Symbiotic allows users to ensure the security of third-party networks through a shared security model, competing with Ethereum’s first re-staking agreement, EigenLayer. Similar to EigenLayer, Symbiotic seeks to address common issues in blockchain development and network security by reallocating existing staking capital and infrastructure. Depositors in Symbiotic will be rewarded for contributing to the security of third-party networks. The protocol features a flexible and configurable modular design, supporting any token combination as collateral for re-staking, and allowing for customized penalty and reward mechanisms.

The launch of Symbiotic will coincide with its guided launch phase and integration phase of re-staking collateral.

Source:
Symbiotic
The difference between Symbiotic and EigenLayer is that the protocol allows the use of various ERC-20 tokens, not limited to Ether (ETH) and specific derivatives, potentially increasing the protocol’s capital inflow. Symbiotic initially focuses on staking Ether (stETH) and will adapt to various protocols, providing control over aspects such as asset support for third-party protocols and node operator selection. Symbiotic noted that several projects in different decentralized stages are exploring the use of Symbiotic’s re-staking primitives. Notable integrations include Ethena, Chainbound’s Bolt, Hyperlane, Marlin’s Kalypso, Fairblock, Ojo, Rollkit, among others.

Since its launch last year, EigenLayer, the first re-staking protocol on Ethereum, has seen a significant influx of funds. Since early 2024, the total locked value of the protocol has grown from $1.4 billion to nearly $20 billion, accompanied by several integrations (also known as Active Verification Services).

Related report: “Insiders: Lido founder and Paradigm secretly invest in re-staking protocol Symbiotic, competing with EigenLayer”