The protocol’s goal is to give organizations open, permissionless restaking choices.
After receiving $5.8 million in venture capital from Paradigm and Cyber Fund, Symbiotic launched on June 12, making a significant entrance into the decentralized finance (DeFi) industry.
This launch poses a serious threat to EigenLayer, a prominent participant in the Ethereum restaking market.
The co-founders of Lido and Paradigm made a pledge on May 15th, which led to the establishment of Symbiotic. The project’s goal is to shake up the current restaking narrative, which EigenLayer dominates. Konstantin Lomashuk and Vasiliy Shapovalov, two executives from Lido, are discreetly backing it via Cyber Fund.
Symbiotic touts itself as “a generalized shared security system allowing decentralized networks to bootstrap strong, fully sovereign ecosystems,” boasting an outstanding Total Value Locked (TVL) of $231.11 million immediately after debut. The TVL metric provides insight into the capital use within a DeFi ecosystem by measuring the overall activity and popularity of a DeFi project.
Alessandro Mazza said that, “among other things,” it shattered all records conceivable, with almost $200 million in TVL achieved in a matter of hours.
The move of EigenLayer co-founder Sreeram Kannan to seek financing from Andreessen Horowitz (a16z) instead prompted Paradigm to offer their support. Unfazed, the venture financing company DeFi contacted Symbiotic as Ethereum and Lido fought along the “restaking narrative” style. Paradigm is also Lido’s most significant supporter.
The biggest liquid staking protocol on TVL for Ethereum is Lido, with DefiLlama indicating a TVL of $33.6 billion as of press time. EigenLayer’s TVL of $18.78 billion places it in second place.
EigenLayer swiftly rose up the ranks, endangering Lido in the process. Some customers dumped their holdings in Lido to put more money into the newer restaking site, which led to its rapid expansion at the cost of Lido. Some have speculated that Lido’s support for Symbiotic, EigenLayer’s rival, is an attempt to cement its position as market leader.
One of the most influential names in decentralized finance (DeFi) is Lido. The Lido Staked ETH (stETH) protocol allows users to stake their Ethereum for a variety of benefits. A relatively new service, EigenLayer allows users to stake their ETH and stETH in return for incentives that they may use to help protect other networks.
Embracing the restaking narrative, the Lido stake-taking platform has been battling for dominance in the decentralized financial space, with EigenLayer at the forefront of the resistance.
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