Symbiotic First Look: Permissionless & Flexible Restaking

June 20, 2024

In the rapidly evolving world of blockchain, the concept of shared security is gaining significant traction. Symbiotic, a groundbreaking protocol, is at the forefront of this movement, introducing permissionless restaking as a means to enhance the security and decentralization of networks. 

With its recent launch and a successful seed funding round, Symbiotic is aiming to reshape the landscape of shared security in the blockchain ecosystem.

What is Symbiotic?

Symbiotic is a neutral coordination framework that introduces novel primitives for modular scaling. It serves as a thin coordination layer, empowering network builders to control and adapt their own restaking implementation in a permissionless manner. By leveraging the security of existing ecosystems, Symbiotic provides a safe and streamlined path to decentralize any network.

At its core, Symbiotic is a shared security protocol that enables networks to source economic security from a diverse set of collateral assets. This permissionless, multi-asset, and network-agnostic design allows for scalable and capital-efficient sourcing of security. Symbiotic’s unique approach empowers networks to customize their restaking implementation, including collateral assets, asset ratios, node operator selection, rewards, and slashing mechanisms.

Symbiotic’s Approach to Restaking and Shared Security

This approach to restaking and shared security is rooted in the evolution of coordination mechanisms in decentralized networks. From Bitcoin’s Proof-of-Work to the emergence of Proof-of-Stake, the focus has shifted towards economic collateral as a means to incentivize and ensure infrastructure operators conform to protocol rules. Symbiotic takes this concept a step further by enabling shared security implementations that utilize the security of existing ecosystems.

Symbiotic: Key Features

  • Flexibility through Modularity: Networks fully control their restaking implementation, including collateral assets, asset ratios, node operator selection, rewards, and slashing mechanisms. Participants can flexibly opt in and out of shared security arrangements coordinated through Symbiotic.
  • Risk Minimization through Immutability: Non-upgradeable core contracts on Ethereum remove external governance risks and single points of failure. Symbiotic’s minimal yet flexible contract design minimizes execution layer risks.
  • Capital Efficiency through Restaked Collateral: Symbiotic’s permissionless, multi-asset, and network-agnostic design enables scalable and capital-efficient sourcing of economic security. An evolving operator-centric cross-network reputation system further enhances capital efficiency for network builders.

Symbiotic’s architecture is designed to be modular and flexible, allowing for a wide range of customization options. The diagram below provides an overview of the protocol’s structure, with different colored arrows representing various agent interactions within the system. 

In addition to its permissionless core contracts, Symbiotic’s architecture boasts several key features:

  • Multi-asset collateral: Symbiotic supports restaking from various chains via ERC20, LP tokens, and other forms of digital assets. 
  • Vaults: Flexible contracts are designed to manage restaked capital.
  • Resolvers: Versatile veto contracts that can incorporate a variety of mechanisms, such as automations, veto-committees, oracles, and more.

Source 

The Symbiotic Ecosystem

Symbiotic has already garnered significant interest from various networks and projects exploring its restaking primitives. Notable launch partners include Ethena, Bolt, Hyperlane, Kalypso, Fairblock, Aori, Drosera, Ojo, Blockless, Rollkit, Cycle Network, Stork, Aizel, Mind Network, and DOPP. These projects span a wide range of use cases, from cross-chain asset transfers and ZK proof marketplaces to AI networks and options protocols, showcasing the versatility and potential of Symbiotic’s shared security framework.

Conclusion

The launch of Symbiotic marks a significant milestone in the evolution of shared security in the blockchain ecosystem. With its permissionless restaking primitives, modular design, and immutable core contracts, Symbiotic is well-positioned to become the go-to platform for networks seeking to enhance their security and decentralization. 

As more projects integrate Symbiotic into their infrastructure, we can expect to see a new era of trust-minimized and decentralized networks emerge, unlocking the full potential of blockchain technology.

Figment is the leading provider of staking infrastructure. Figment provides the complete staking solution for over 500 institutional clients, including asset managers, exchanges, wallets, foundations, custodians, and large token holders, to earn rewards on their digital assets. Institutional staking services from Figment include seamless point-and-click staking, portfolio reward tracking, API integrations, audited infrastructure, and slashing protection. This all leads to Figment’s mission to support the adoption, growth, and long-term success of the digital asset ecosystem. Meet with us to learn more about Symbiotic staking.

The information herein is being provided to you for general informational purposes only. It is not intended to be, nor should it be relied upon as, legal, business, tax, or investment advice. Figment undertakes no obligation to update the information herein.

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