Understanding Symbiotic A Comprehensive Guide to Bankless and Repledging

Coinpost reported:
Author: William M. Peaster, Bankless; Translation: Bai Shui,
EigenLayer has changed the game in the Ethereum ecosystem by introducing the concept of re-staking primitives, but it’s only a matter of time before challengers rise and attempt to beat EigenLayer at its own game!
The recent buzz-worthy 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 allows networks to customize their staking processes, staked asset types, node operator selection, rewards, 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, just 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 pillars. These elements are as follows:
Staked Assets – On-chain assets that provide economic security within Symbiotic. These can include ERC20 tokens, Ethereum validator withdrawal credentials, and other assets across various blockchains.
Insurance Vaults – These customizable components serve as the delegation and re-staking layer for Symbiotic. They handle deposits, withdrawals, slashing, and reward distributions.
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 insurance vaults.
Resolvers – Entities or smart contracts responsible for approving or vetoing 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, incentivization, and punishment of operators and their delegates.
Why is Symbiotic considered a contender against EigenLayer?
There won’t be just one winner in the re-staking category, and that makes sense. Among the many competitors, Symbiotic currently appears to be the most likely protocol to challenge EigenLayer in the coming months.
That being said, if you’re bullish on re-staking overall, Symbiotic is certainly a project worth considering because it’s early-stage, promising, and has great potential for development with ERC-20 support.
Additionally, Symbiotic airdrops are also an opportunity not to be overlooked. While EigenLayer has EIGEN, it seems inevitable that it will utilize a similar system of airdropping native tokens, called Symbiotic Points, to early users. Stake now, reward later.
Finally, there are some interesting Symbiotic integrations going live today that offer a double earning opportunity. One of them is Mellow, a liquid re-staking token (LRT) project that provides Mellow Points and Symbiotic Points to users who stake through their platform.
How to Stake on Symbiotic?
If you’re interested in staking on Symbiotic, go to https://app.symbiotic.fi/restake and connect your wallet. 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 insurance vaults available for deposit, as shown in the image below. Note that some insurance vaults, such as the Wrapped Lido Staked Ether (wstETH) vault, have reached their temporary deposit limit, while others, like the Coinbase Wrapped Staked Ether (cbETH), are still open for depositors.
Assuming you have some cbETH and want to start staking, simply click on 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 staking. You can withdraw funds through the same interface or track your deposits and points through the dashboard page as needed.
Note that if you’re interested in double staking with Mellow, the deposit process is almost the same. Choose your vault, enter the desired deposit amount, complete the transaction, and the points will flow.
As the re-staking ecosystem evolves, protocols like Symbiotic can have a significant impact on how network security and economic incentives are managed within the crypto economy.
With its modular design and support for ERC-20 collateral, Symbiotic challenges existing re-staking paradigms and opens up new avenues for innovation and flexibility.
How Symbiotic’s approach will impact other protocols and what new opportunities its features will bring, we can only wait and see. But in the meantime, it’s a project worth paying attention to and trying out!