The Avalanche Foundation has unveiled ACP-77, a transformative proposal set to redefine Subnet creation and operation within the Avalanche blockchain ecosystem. This ambitious initiative aims to lower entry barriers, enhance flexibility, and foster a more decentralized and dynamic network environment. Here, we delve into the intricacies of ACP-77, exploring its current context, proposed changes, benefits, and potential challenges.

-> Please note, ACP-77 proposes renaming 'Subnets' to 'Avalanche L1s (Layer 1s)'. If the proposal passes, they will henceforth be known as Avalanche L1s.

The Current landscape of Subnets

Subnets and their role: In the Avalanche ecosystem, subnets function as independent blockchains that leverage the mainnet for interoperability. However, the existing requirements for Subnet validation have created significant hurdles for developers.

The cost barrier: Currently, validators of Subnets must also validate the Avalanche mainnet, necessitating a minimum stake of 2,000 AVAX. At today's rates, this amounts to a substantial financial commitment, approximately $70,000. This high cost deters many developers that aim to jumpstart their Subnet by running their own validators, stifling innovation and limiting the expansion of the subnet ecosystem.

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Key proposals of ACP-77

ACP-77 introduces a series of pivotal changes designed to overhaul the Subnet creation process, making it more accessible and efficient.

1. Decoupling Subnet and Mainnet validation:

• Current Requirement: Validators must validate both the subnet and the mainnet, involving a high financial stake.
• Proposed Change: Subnet validators will no longer be required to validate the mainnet. This separation allows subnet creators to define their own validator sets and operational logic, significantly reducing costs.

2. Enhanced validator set management:

• Autonomy for Subnets: Subnet creators will gain the ability to establish their own rules for validator sets, staking rewards, and operational conditions. This autonomy empowers developers to tailor their subnet operations to their specific needs and goals.

3. P-Chain fee mechanism:

• Service payments: Subnet validators will pay the P-Chain for services such as validator set changes and cross-Subnet communication.
• Continuous balance depletion: Avalanche L1s will have balances on the P-chain that deplete continuously, requiring periodic refills to maintain operations. This ensures an ongoing contribution to the network’s overall functionality and security.

‍4. Streamlined synchronization:

• Current process: Validators must sync with the entire mainnet, which can be resource-intensive.
• Proposed process: Validators will only need to sync with the P-Chain, reducing resource requirements and streamlining the validation process.

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Benefits of ACP-77

The proposed changes in ACP-77 bring several significant benefits to the Avalanche network and its developers.

1. Lower costs and increased accessibility:

• Reduced Financial Barriers: By removing the 2,000 AVAX requirement, ACP-77 makes the creation of L1s and maintenance far more affordable. This democratization of Subnet access is poised to unlock a wave of innovation and participation within the ecosystem.

2. Greater flexibility and autonomy:

• Customizable operations: Subnet creators can now define their own validator rules, staking rewards, and operational conditions. This flexibility allows for highly customized and optimized Subnet operations, tailored to specific project needs.

3. Incentives for decentralization:

• Promoting decentralized models: The new framework encourages projects to adopt more decentralized, permissionless models. This shift towards decentralization enhances the resilience and diversity of the network.

4. Enhanced security and interoperability:

• Self-regulated security: Subnets will be responsible for their own security and validator integrity allowing even for restaking solutions as an example, promoting better self-regulation and robust security practices.
• Seamless interoperability: Through Avalanche Warp Messaging (AWM), Subnets will enjoy improved interoperability, facilitating smoother communication and collaboration across the network.

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Potential challenges and considerations

While ACP-77 promises numerous benefits, it also introduces certain challenges that need to be addressed.

1. Economic implications:

• Impact on AVAX tokenomics: The changes in validator requirements could affect the overall AVAX holdings among Subnet validators, influencing the tokenomics and market dynamics of AVAX. Careful analysis and management will be needed to maintain balance and stability.

2. Implementation complexity:

• Transition challenges: The shift to new validation models and the continuous fee mechanism introduces complexity in implementation. L1 operators will need to adapt to new cost structures and operational protocols, which may require significant adjustments and planning.

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Final word

ACP-77 represents a bold and forward-thinking step in the evolution of the Avalanche network. By lowering financial barriers, enhancing flexibility, and promoting decentralization, this proposal has the potential to unlock unprecedented growth and innovation within the Subnet ecosystem. While challenges remain, the careful implementation of ACP-77 could pave the way for a more accessible, dynamic, and resilient Avalanche network, fostering a new era of blockchain development and collaboration.

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About Chorus One

Chorus One is one of the biggest institutional staking providers globally, operating infrastructure for 60+ Proof-of-Stake networks, including Ethereum, Cosmos, Solana, Avalanche, and Near, amongst others. Since 2018, we have been at the forefront of the PoS industry and now offer easy enterprise-grade staking solutions, industry-leading research, and also invest in some of the most cutting-edge protocols through Chorus Ventures. We are a team of over 50 passionate individuals spread throughout the globe who believe in the transformative power of blockchain technology.

In Part 2 of our TON Series, we dive into TON’s staking mechanisms. We'll cover the what, why, and how of staking TON, as well as how to get started easily with Chorus One.

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An introduction to TON Staking

TON leverages the Proof of Stake (PoS) consensus algorithm, a system where validators are responsible for proposing and validating new blocks of transactions. In TON's PoS model, validators are selected through a competitive election process to ensure the highest levels of security and performance.

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The Election and Validation Process

The election process is central to TON staking. During each consensus round, potential validators submit their applications along with their stake and other parameters, which determines the level of maintenance they are willing to perform. The Elector governance contract evaluates these applications, selecting validators based on their stake and parameters, aiming to maximize the network's overall stake.

Once selected, validators enter a validation cycle, as depicted in the timeline diagram below:

Key Phases of the Validation Cycle:

1. Election (6-7 hours): Candidates apply to become validators.
2. Delay (2-3 hours): A brief waiting period before validation starts.
3. Validation (18 hours): Validators approve transactions and propose new blocks.
4. Hold (9 hours): Validators prepare for the next cycle.

To ensure continuous network operation, TON employs two types of pools—odd and even—which operate in alternating cycles, providing seamless validation without interruptions.

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Minimum stake

To be eligible for the validator election process, validators need a minimum stake of

300,000 TON. Validators stake Toncoin for a fixed specific term, and the stake is refunded with interest after the completion of a validation round.

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Validator rewards

Each transaction on TON requires a computation fee called gas used to conduct network storage and the transaction processing on-chain. Like most blockchain networks, on TON, these fees are accumulated within the Elector contract in a reward pool. 50% of fees users pay are burnt and 50% goes to validators.

The network also subsidizes block creation by adding a subsidy to the reward pool equal to 1.7 TON for each block in the main chain, called masterchain. TON’s architecture allows for the creation of parallel chains, called  workchains. For workchain blocks,  the reward per block is set to 1 TON. The network has an inflation rate of approximately 0.3-0.6% annually.

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How does TON staking work?

TON offers several staking mechanisms to cater to different needs and preferences. Let's explore these options:

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1. Nominator Pool ‍

The Nominator Pool is central in TON's staking ecosystem, offering a collaborative approach to staking that allows multiple users to pool their Toncoin (TON) tokens and collectively participate in the network's validation process. This pooling mechanism is designed to democratize staking, making it accessible to a broader range of participants who may not have sufficient tokens to meet the minimum staking requirements individually.

The Nominator Pool enables a group of up to 40 nominators (stakers) to combine their staking power and delegate it to a validator like Chorus One. This collective staking approach not only helps in meeting the high minimum staking thresholds but also ensures that the network remains secure and robust by leveraging the combined resources of multiple stakeholders.

How the Nominator Pool Works:

1. A nominator joins the pool by staking a minimum of 10,000 TON tokens.
2. The pool collectively stakes the combined tokens through a validator. The operator managing the validator must stake at least 1,000 TON tokens which are used to protect against bad behavior.
3. The Election Process starts: During the election phase, which lasts between 6 to 7 hours, the pool’s validator submits an application for validation, along with the combined stake from all nominators.
4. Delay Period: After the election, there is a delay of 2 to 3 hours before the validation phase begins.
5. Validation Cycle: The validator then participates in an 18-hour validation cycle, during which they propose and validate new blocks of transactions.
6. Reward Distribution: At the end of each validation cycle, the rewards earned are distributed among the nominators based on the proportion of their stake in the pool.
7. To access their rewards, nominators need to send a transaction of 1 TON to the pool with a specific comment, which triggers the return of their entire stake and earned rewards.
8. Withdrawal: Nominators can withdraw their entire stake and rewards in one transaction. Partial withdrawals are not supported via this mechanism, necessitating a complete withdrawal of funds when accessing rewards.

To visualize the Nominator Pool workflow, consider the following diagram:

This workflow ensures continuous network validation, with odd and even pools alternating their validation cycles to maintain seamless operation and security of the TON blockchain.

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Pros and Cons of the Nominator Pool

Pros:

• Relatively low effort to set up, with support from validators like Chorus One
• Allows multiple nominators to pool resources, making it easier to meet staking thresholds.
• Automatically handles proportional reward distribution.

Cons:

• The minimum staking requirements might exclude investors with less than 10,000 TON.
• Only allows full withdrawals, which can be restrictive for nominators needing partial access to their funds.
• Utilizes a hot wallet for operational fees, posing potential security risks.

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2. Single Nominator Pools

The Single Nominator Pool is a streamlined and secure staking mechanism within the TON ecosystem, designed specifically for validators who have sufficient TON to stake independently (aka solo stakers). This approach reduces complexity and enhances security by focusing on a single nominator, making it an ideal choice for those who prefer a more straightforward staking process.

The Single Nominator Pool allows a single entity to manage the staking process, providing a simplified and secure framework for validators. By eliminating the need for multiple nominators, this mechanism significantly reduces the attack surface, making it easier to safeguard the staked assets.

How the Single Nominator Pool Works

1. A Single Nominator Pool is deployed by a validator like Chorus One.
2. Only one nominator, who is also the pool owner, stakes their TON tokens. The single nominator can stake any amount of TON which should meet the protocol minimum requirement (currently 300,000 TON tokens).
3. The nominator applies for validation by submitting their stake during the election period (6-7 hours).
4. After the election, a delay of 2-3 hours occurs before the validation phase begins.
5. The validator participates in an 18-hour validation cycle, validating transactions and proposing new blocks.
6. All rewards generated during the validation cycle are directed to the single nominator.

• Flexible Withdrawals: The nominator can withdraw any amount of their stake and rewards, offering greater flexibility compared to multi-nominator pools.

7. The pool uses a cold wallet to store the principal staking funds, significantly reducing the risk of theft.
8. Hot Wallet Operations: The validator uses a hot wallet to manage operational fees, ensuring that the cold wallet remains secure.

To illustrate the workflow of the Single Nominator Pool, consider the following diagram:

This simplified workflow highlights the continuous cycle of election, delay, validation, and hold phases, ensuring the seamless operation and security of the TON blockchain.

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Pros and Cons of the Single Nominator Pool

Pros:

• Easy to deploy and manage a single nominator pool.
• Reduced attack surface via the use of a cold wallet for principal funds.
• Allows partial withdrawals, providing greater flexibility for the nominator.

Cons:

• Not suitable for groups or multiple nominators with smaller holdings of TON tokens.
• Doesn’t support distribution of rewards between validator and nominator, requiring technical expertise from nominator to operate the pool, or off-chain payments.
• All operations rely on the single nominator, which can be a limitation for shared or community-based staking.

The Single Nominator Pool offers a secure and efficient staking solution for individual validators, combining simplicity with enhanced security measures. By focusing on a single participant, this mechanism ensures that the staking process is straightforward and easy to manage, making it an attractive option for those looking to stake their TON independently.

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3. Liquid staking

Liquid Staking protocols enable TON holders to participate in staking pools, lending their funds to validators at a predetermined interest rate. In return, stakers receive liquid staking receipt tokens, known as Pool Jettons, which represent their share in the pool. These tokens can be exchanged back for TON at any time, allowing stakers to maintain liquidity while earning rewards.

The protocol is user-agnostic, accommodating users of all capital sizes without any minimum or maximum stake requirements.

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How TON Liquid Staking Works

1. Users stake their TON in a pool managed by the Liquid Staking Contract.
2. Upon staking, users receive Pool Jettons, which are liquid staking receipt tokens representing their share of the pool. These tokens ensure that users can maintain liquidity and withdraw their staked assets whenever needed.

3. Staked funds are lent to validators, who use them for participating in the network’s validation process. Validators are chosen based on their stake and maintenance parameters during election phase, followed by a validation cycle.
4. During each 36-hour validation cycle, validators earn rewards, which are distributed proportionally to all participants in the pool.
5. Rewards come from interest payments made by validators who borrow the staked funds. The value of Pool Jettons increases as rewards are distributed, reflecting the growing stake in the pool.
6. Users can deposit and withdraw their assets at any time without any predefined limits, managed through specialized smart contracts that ensure accurate accounting and security.

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Pros and Cons of TON Liquid Staking

Pros:

• User-agnostic design makes it suitable for all users, regardless of their stake size or technical expertise.
• Allows partial and full withdrawals at any time, providing liquidity to stakers.

Cons:

• Higher effort required for deployment and management due to the use of multiple smart contracts and DAOs.
• Reliance on various smart contracts can increase the risk of vulnerabilities, necessitating rigorous audits and security measures.

The Liquid Staking Contract offers a versatile and powerful staking solution on the TON blockchain, combining the benefits of liquidity, decentralization, and accessibility. By understanding and leveraging this mechanism, users can participate in network validation more flexibly and securely, contributing to the overall stability and growth of the TON ecosystem.

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Staking TON with Chorus One

Chorus One offers white-label TON validator services for institutional customers, as well as deployment and management of nominator pools. We can create nominator pools for our customers, requiring a minimum delegation of 300,000 TON tokens (TONcoin).

As the operator, Chorus One takes full responsibility for the operational fees, maintenance, and performance of the validator, ensuring seamless and efficient service.

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Ready to get started, or want to learn more?

Fill this form - https://chorusone.my.salesforce-sites.com/WebToLead

OR

Email us - staking@chorus.one

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About Chorus One

Chorus One is one of the biggest institutional staking providers globally, operating infrastructure for 50+ Proof-of-Stake networks, including Ethereum, Cosmos, Solana, Avalanche, and Near, amongst others. Since 2018, we have been at the forefront of the PoS industry and now offer easy enterprise-grade staking solutions, industry-leading research, and also invest in some of the most cutting-edge protocols through Chorus Ventures. We are a team of over 50 passionate individuals spread throughout the globe who believe in the transformative power of blockchain technology.

The rise of TON (The Open Network) has been spectacular, driven by its seamless integration with Telegram and remarkable price performance, reaching new all-time highs in June 2024. Its native token, Toncoin ($TON), has achieved a market cap of $17 billion and a total value locked (TVL) of over 660 million at the time of writing.

This year, the network has gained tremendous traction, becoming the preferred solution for Web3 integration with Telegram, which reportedly has over 900 million users worldwide.

Key developments fueling TON's rapid adoption include the global launch of TON Space, a self-hosted digital wallet (Telegram Wallet), a strategic partnership with Tencent to create a ‘Super App Eco-platform,’ and the launch of native stablecoin payments. Major investors like Pantera Capital have also highlighted TON’s scalability and extensive user base, comparing its potential to that of Solana or Ethereum and claiming TON as one of the most exciting and unique blockchains in existence today.

Below, we explore some of the most unique innovations within the TON ecosystem. 👇

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1. The Telegram Wallet and TON Space: Easy Onboarding, Simplifying service payments and fund transfers

The Telegram Wallet, introduced in the fall of 2023, is a versatile tool for managing digital currencies directly within the Telegram messaging app. It offers both custodial and non-custodial options, giving users the flexibility to choose between having Telegram manage their keys or maintaining full control themselves.

TON Space, a novel feature within the Telegram Wallet, serves as its non-custodial component. It allows users to store, send, receive, and exchange various cryptocurrencies, including Toncoin, Bitcoin, and stablecoins, all within the app. Users can back up their wallets using Telegram and their email, eliminating the need to remember a seed phrase. Additionally, users can track their portfolio in real-time and receive transaction notifications.

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Why this matters:

The key advantage of TON Space is its seamless integration with Telegram, providing easy access to funds, quick transactions with contacts, as well as enhanced security and flexibility for experienced users. Its integration with Telegram bots and services allows for efficient market updates, trading actions, and service payments, all in one place.

TON Space simplifies digital asset management, making it accessible to a broader audience while offering advanced features for experienced users. By combining the convenience of a messaging app with the functionality of a comprehensive wallet, TON Space aims to drive mass adoption of cryptocurrency, potentially increasing the user base to 500 million by 2028.

To understand how to choose the right wallet for your TON assets here, visit: https://www.coingecko.com/learn/top-ton-wallets-jettons-crypto

2. A truly scalable ecosystem with a highly performative blockchain

TON capitalizes on the messaging app's extensive user base to create a network capable of supporting a wide range of applications. Its ecosystem comprises the TON Blockchain, TON Storage, TON DNS, and TON Services, all designed to work seamlessly together.

At the core of TON is its blockchain, built for high performance and scalability. Its dynamic sharding mechanism enables the network to process millions of transactions per second, scaling efficiently as the user base expands.

Dynamic sharding is TON's key feature for achieving high scalability. The ability to shard into individual chains (work chains and shard chains) allows TON to "distribute" transactions, effectively removing the bottleneck of processing transactions on a single blockchain. Learn more about how TON’s dynamic sharding works here.

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Why this Matters:

TON’s multifaceted services extend beyond traditional blockchain functionality, aiming to establish a foundational Web3 platform. By integrating various decentralized services within a single ecosystem, TON provides the infrastructure necessary for a decentralized internet, positioning itself as a significant player in the evolution of digital infrastructure. Additionally, TON’s highly scalable blockchain offers an ideal platform for developers looking to deploy applications for a large audience without compromising on speed or security.

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3. Mini Apps - TON’s native support for off-chain scaling

Over 360 million users engage monthly with Telegram's “Mini Apps,” including chatbots and mini-games which are easily accessible via the TON Space. These TON-based applications leverage TON’s innovative support for payment channel technology (or Lightning Network) designed for fast off-chain transactions, efficiently handling microtransactions and high-frequency trading.

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Why this Matters:

TON’s native support for off-chain scaling and the lightning network design addresses the scalability trilemma more effectively than bolt-on solutions. It allows the blockchain to handle high-frequency, low-value transactions, which are essential for the mainstream adoption of blockchain technology.

Currently, there are over 300 projects on TON, with most building mini-apps accessible via the Telegram Apps Center. Earlier this year, memecoin trading tools like BonkBot leveraging this technology generated millions of dollars in revenue through Telegram’s interface. TON-based applications such as StormTrade now enable users to trade perpetuals, cryptocurrencies, stocks, and equities using the same platform. With StormTrade facilitating over $10 million in daily trading volume, similar TON-native Telegram bots are poised to become the preferred user experience for many traders.

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4. Native Stablecoin payments

On April 19th, 2024, Tether announced the deployment of a stablecoin, USDt, on the TON blockchain and in Wallet in Telegram. This development represents a significant advancement for the industry, allowing hundreds of millions of users to seamlessly send and receive stablecoins through the Telegram platform, making payments as easy as using Venmo or Apple Cash.

Additionally, as part of the TON network’s scalability plan, straight from Telegram Wallet, users can transfer USDt to i) contacts or other Telegram users; and ii) their own or others’ addresses in the TON blockchain for a very low fee (currently ~0.005 TON), making it a very convenient and competitive platform for small businesses and services.

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Why this Matters:

For the TON community, integrating USDt into Wallet in Telegram significantly improves the transaction experience. Users benefit from free transfers within Telegram and only pay network fees when transacting on-chain, using TON space or other self-custodial wallets. USDt on TON also provides an accessible entry point for newcomers to cryptocurrencies, combining the advantages of digital currencies with the stability of traditional fiat currencies.

In fact, the supply of USDT stablecoin on the TON network crossed 500 million after two months of rollout, reflecting a high demand for this use-case.

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TON Economics: Is TON the new SOL?

Even when transacting on-chain, the TON blockchain is relatively cheap. Employing a gas based model, simple transactions’ fee currently averages 0.005 TON, or $0.04 at the time of writing when $TON was priced at $8. At this level, TON positions itself as a potential competitor to Solana - although TON’s scalability has not yet been tested as extensively.

Inflation rate in the protocol is 0.5% per year - considerably small compared to other blockchains. To compensate for that, all network participants are rewarded from both transaction fees and block rewards. As a consequence, users are incentivized to stake their TONcoin to secure the network and directly benefit from network adoption. The biggest advantage lies in keeping assets staked on-chain rather than with external parties offering a fixed APY, e.g. centralized exchanges. As part of a deflationary mechanism, 50% of all TONcoin collected in fees is burnt.

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TON Staking

TON relies on the DPoS consensus mechanism with a set of validators who propose and validate new blocks. The validator set is determined by the Elector governance smart contract, which allocates new rounds based on each validator's weight, represented by the amount of tokens delegated to them.

Staking is one of the safest and most predictable ways to earn rewards in the crypto space, as the value originates from the blockchain’s native currency inflation, making it forecastable.

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By staking your TON, you help secure the network and earn rewards. Chorus One is the leading enterprise-grade staking platform, enabling institutional customers to stake TON and integrate TON staking functionality into their offerings. We are ready to closely collaborate and contribute to the success of the TON ecosystem, and provide the best staking experience possible.

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How to stake TON?

Reach out to us if you are an institution looking to stake TON with Chorus One.

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About Chorus One

Chorus One is one of the biggest institutional staking providers globally, operating infrastructure for 50+ Proof-of-Stake networks, including Ethereum, Cosmos, Solana, Avalanche, and Near, amongst others. Since 2018, we have been at the forefront of the PoS industry and now offer easy enterprise-grade staking solutions, industry-leading research, and also invest in some of the most cutting-edge protocols through Chorus Ventures. We are a team of over 50 passionate individuals spread throughout the globe who believe in the transformative power of blockchain technology.

Restaking Summer has arrived.

The staking revolution on Ethereum and other proof-of-stake blockchains has been one of the biggest developments in crypto over the past few years. First came staking pools and services that allowed users to earn rewards by contributing their crypto assets to help secure these networks. Then liquid staking derivatives like stETH unlocked composability and liquidity - holders could put their staked assets to work earning yield in DeFi while still earning staking rewards.

The first half of 2024 has seen the rise of restaking - protocols that allow staked assets like stETH, wETH, osETH and more to be recursively staked to earn compounding rewards. EigenLayer took restaking mainstream, locking nearly $20B in TVL (at the time of writing) as users flocked to maximize their yields. But restaking has been limited to a single asset like ETH so far.

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Enter Symbiotic

Now, a new protocol called Symbiotic is aiming to push restaking into its next phase - a permissionless, asset-agnostic restaking layer for all of crypto.

Symbiotic is a generalized shared security protocol that serves as a thin coordination layer. It empowers network builders to source operators and scale economic security for their decentralized network.

At its core, Symbiotic separates the concepts of staking capital ("collateral") and validator infrastructure. This allows networks to tap into pools of staked assets as economic bandwidth, while giving stakeholders full flexibility in delegating to the operators of their choice.

The Symbiotic protocol has a modular design with five core components that work together to provide a flexible and efficient ecosystem for decentralized networks.

1. Collateral: ERC-20 tokens representing staked assets or liquidity positions from various blockchains, enabling cross-chain capital efficiency.
2. Vaults: A key component handling delegation and restaking management, responsible for accounting, delegation strategies, and reward distribution. Vaults can be configured in various ways to create differentiated products.
3. Operators: Entities like Chorus One that run infrastructure for decentralized networks within and outside the Symbiotic ecosystem. The protocol creates an operator registry and enables them to opt-in to networks and receive economic backing from restakers through vaults.
4. Resolvers: Contracts or entities that handle slashing incidents forwarded from networks, with the ability to veto these incidents. Resolvers can take the form of committees or decentralized dispute resolution frameworks, providing added security to participants.
5. Networks: Protocols that rely on decentralized infrastructure to deliver services in the crypto economy. Symbiotic's modular design allows developers to define engagement rules for participants in multi-subnetwork protocols.

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Understanding how the protocol works

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1. Users can deposit their assets and mint Collateral into trusted Vaults (e.g., a Chorus One-specific vault). These Vaults predefine the eligible collateral, such as ETH, stablecoins, LP positions, etc.
   
   
2. Vaults then manage the delegation of assets to operators or opt-in to run the infrastructure of chosen Networks (in the case of operator-specific Vaults like the Chorus One Vault). For Vaults that are not operator-specific, Symbiotic offers a registry of operators with their credentials to facilitate restakers’ delegation strategies.
   
   
3. While Vaults define acceptable collateral, Networks need to accept this collateral. Additionally, Vaults and Networks must agree on the slashing and reward distribution logic.

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What makes Symbiotic unique?

Symbiotic leverages a flexible model with specific characteristics that offer distinct advantages to each stakeholder:

For Operators:

• Operators can secure stakes from a diverse range of restakers with varying risk tolerances without needing to establish separate infrastructures for each one.

For Restakers:

• Restakers can delegate assets beyond ETH and select trusted Vaults for their deposits. They also have the option to place their collateral in immutable Vaults, ensuring that the terms cannot be altered in the future.

For Networks:

• Networks can collaborate with top-tier operators who have verified credentials. When sourcing security, networks can choose operators based on reputation or other important criteria. The flexibility in collateral options leads to a more extensive security pool, potentially reducing security costs for networks.

The protocol opened for deposits on June 11th, and it was met with much fanfare and demand: within a mere 5 hours of going live, a whopping 41,000 staked wETH had already been deposited into the protocol - smashing through the initial cap! New crypto assets and higher caps will be added as the protocol onboards more networks and operators.

Symbiotic vs. EigenLayer

Symbiotic sets itself apart with a permissionless and modular framework, providing enhanced flexibility and control. Key features include:

1. Multi-asset support: Symbiotic permits direct deposits of any ERC-20 token, enhancing its versatility compared to EigenLayer, which is primarily centered around ETH and its derivatives. Nonetheless, EigenLayer has indicated the potential to support any asset in the future.
2. Customizable Parameters: Networks utilizing Symbiotic can select their collateral assets, node operators, rewards, and slashing conditions. This modularity grants networks the freedom to tailor their security settings to meet specific needs.
3. Immutable Core Contracts: Symbiotic’s core contracts are non-upgradeable, which minimizes governance risks and potential points of failure.
4. Permissionless Design: Symbiotic fosters a more decentralized and open ecosystem by enabling any decentralized application to integrate without needing prior approval.

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EigenLayer employs a more managed and centralized strategy, concentrating on utilizing the security provided by ETH stakers to back various decentralized applications (AVSs):

1. Single Asset Focus: EigenLayer primarily supports ETH and its derivatives. This focus can limit flexibility compared to Symbiotic’s broader multi-asset support.
2. Centralized Oversight: EigenLayer oversees the delegation of staked ETH to node operators responsible for validating different AVSs.
3. Dynamic Marketplace: EigenLayer offers a marketplace for decentralized trust, enabling developers to leverage pooled ETH security to launch new protocols and applications, with risks being distributed among pool depositors.

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Symbiotic x Mellow Protocol

Symbiotic has collaborated extensively with Mellow Protocol, its "native flagship" liquid restaking solution. This partnership empowers node operators and other curators to create their own composable LRTs, allowing them to manage risks by choosing networks that align with their specific requirements, rather than having these decisions imposed by restaking protocols.

Mellow provides the ability for anyone, including hedge funds and node operators, to deploy a Liquid Restaking Token. This will likely lead to a significant increase in the number of LRTs, complicating their integration with DeFi protocols and affecting liquidity. Despite these challenges, Mellow offers several advantages:

• Varied Risk Profiles: Traditional LRTs often impose a single risk profile on all users. Mellow enables multiple risk-adjusted models, allowing users to select their desired level of risk exposure.
• Modular Infrastructure: Mellow's modular design permits networks to request specific assets and configurations, enabling risk curators to create tailored LRTs to meet their needs.
• Smart Contract Risk: By allowing modular risk management, Mellow reduces the risk of bugs in smart contracts and logic of Shared Security Networks, providing a safer environment for restakers.
• Operator Centralization: Mellow prevents centralization by distributing the decision-making process for operator selection, ensuring a balanced and decentralized operator ecosystem. Existing LTRs determine which operators should validate their pooled ETH, as well as what AVS they opt in to, effectively managing Risk on behalf of users.
• LRT Looping Risk: Mellow addresses the risk of liquidity issues caused by withdrawal closures, with current withdrawals taking 24 hours.

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Symbiotic restaking is LIVE on our staking dApp, OPUS Pool

We’re proud to share that we have integrated Symbiotic restaking into our staking dApp, OPUS Pool.  

​​OPUS users can now seamlessly tap into Symbiotic's restaking capabilities with just a few clicks on our dApp. When the cap is relifted, simply deposit your assets to start earning Symbiotic points, which can soon be delegated to operators like Chorus One to earn rewards.

Not only is the process incredibly user-friendly, but it's fully secure and censorship-resistant - restaking as it was meant to be.

Start restaking today at: https://opus.chorus.one/pool/restake

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Resources:

Symbiotic Website: https://symbiotic.fi/

Docs: https://docs.symbiotic.fi/

Twitter:https://x.com/symbioticfi

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About Chorus One

Chorus One is one of the biggest institutional staking providers globally, operating infrastructure for 50+ Proof-of-Stake networks, including Ethereum, Cosmos, Solana, Avalanche, and Near, amongst others. Since 2018, we have been at the forefront of the PoS industry and now offer easy enterprise-grade staking solutions, industry-leading research, and also invest in some of the most cutting-edge protocols through Chorus Ventures. We are a team of over 50 passionate individuals spread throughout the globe who believe in the transformative power of blockchain technology.