The game between giant VCs: One article to understand the re-pledge agreement Symbiotic supported by Paradigm and Lido

Written by Yangz, Techub News

As a rare popular DeFi narrative in this round of bull market, the re-staking track has welcomed another heavyweight player. On June 11, Symbiotic announced it had completed initial deployment and raised $5.8 million in a seed round led by Paradigm and Cyber ​​Fund. Five hours after going online, the wstETH pledged on Symbiotic reached the upper limit, and the momentum was really fierce.

Considering that the current re-staking track EigenLayer only supports staking of ETH and certain ETH derivatives, while Symbiotic supports staking of any asset that meets the ERC-20 token standard, the two may become direct competitors. According to previous reports by CoinDesk, behind this financing is actually a game between giant VCs. Several people familiar with the matter revealed that EigenLayer co-founder Sreeram Kannan turned down investment from Paradigm and chose a16z instead. The Cyber ​​Fund was created by Lido co-founders Konstantin Lomashuk and Vasiliy Shapovalov. Although Cyber ​​Fund issued an article expressing respect for EigenLayer's pioneering work in re-pledge, it is not difficult to imagine that this investment should also be its response to EigenLayer's encroachment on its market share.

So, what kind of re-pledge agreement is Symbiotic?

Symbiotic Introduction

According to the official documentation, Symbiotic is a shared security protocol that serves as a coordination layer to enable network builders to control and adjust their own (re)staking in a permissionless manner. Strategy.

The advantages of this protocol include:

• Flexibility brought by modularity

The network can control every aspect of the (re)staking strategy, including supported staking assets, node operator selection, rewards, slashing, and related settlement mechanisms. All participants have the flexibility to opt in or out of Symbiotic.

• Risk Minimization through Immutability

Non-upgradeable core contracts on Ethereum eliminate external governance risks and single points of failure. Symbiotic’s contract design can minimize execution-level risks.

• Improving capital efficiency through re-hypothecation and reputation-based curation

Permissionless, multi-asset, and network-agnostic design helps Scalable and capital efficient economic security. In addition, evolving operator-centric cross-network reputation systems will further improve capital efficiency for network builders.

Symbiotic core module

The Symbiotic protocol consists of 5 interrelated modules, including the collateral of the economic security layer, the treasury of the pledge layer, the operator of the infrastructure layer, and the arbitration layer Resolver and service layer networks.

Collateral

Collateral increases capital by enabling the assets used to secure the Symbiotic network to be held outside of the Symbiotic protocol itself (e.g., holding DeFi positions on networks outside of Ethereum) efficiency and scale.

Symbiotic accomplishes this by decoupling the ability to slash an asset from the underlying asset itself, similar to how liquidity staking tokens create a tokenized representation of the underlying staking position. Technically, collateralized positions in Symbiotic are ERC-20 tokens, with extended functionality to handle slashing.

Collateral tokens are minted by users who own assets or want to re-collateralize their positions and are deposited into the treasury, which will entrust the collateral to operators in the Symbiotic network . The treasury defines acceptable collateral, and the network needs to accept treasury collateral and treasury terms (such as slashing limits) to receive rewards.

Treasury

Treasury is the entrustment and re-pledge management of Symbiotic. Its functions include:

• "Accounting": The treasury handles deposits, withdrawals and forfeitures of collateral, and then handles its related assets.

• Delegation strategy: Treasury deployers/owners develop delegation and re-staking strategies to operators on the Symbiotic network.

• Reward distribution: The treasury distributes the network’s staking rewards to collateral savers.

Treasury can be deployed in an immutable, pre-configured manner, or you can specify an owner who can update the treasury parameters. Operators and custodians such as cryptocurrency institutions or liquidity (re)staking protocols are expected to use the treasury to create differentiated products, such as:

• Operator-specific treasury: Operators can Create a treasury and re-pledge collateral onto its infrastructure via any network configuration. Operators can create multiple treasuries with different configurations to provide services to customers without the need for additional node infrastructure.

• Multi-operator treasury: Configure re-pledge networks and delegation strategies for different operators. Treasurys can also set custom slash limits, capping the amount of collateral that can be slashed by a specific operator or network. The terms of these commitments need to be endorsed by the network providing the curation services.

• Immutable pre-configured treasury: Treasurys can be deployed with pre-configured rules that cannot be updated, thus preventing treasury managers from adding additional re-staking networks or in any other way Risks such as changing configurations.

營運商

營運商是在 Symbiotic 生態內外運行去中心化網路基礎設施的實體。 Symbiotic 協議會建立運營商註冊表，記錄與協議的交互，協議參與者可將憑證和其他資料附加到運營商實體上。在初始版本中，這包括運營商自己提供的運營商實體元數據，以及透過與Symbiotic 協議交互創建的數據，例如：

• 運營商選擇加入的網路

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