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.

We're excited to announce that Chorus One has partnered with E Money Network, a pioneering MiCA-compliant blockchain for real-world asset (RWA) tokenization. This collaboration brings together two companies committed to driving accessibility and trust in the digital assets space.

Through this partnership, E Money Network will integrate Chorus One's OPUS software development kit (SDK), enabling E Money wallet users to effortlessly stake their Ethereum (ETH) and earn rewards while maintaining liquidity. The OPUS SDK provides a secure and seamless way for institutions like E Money to offer staking services within their platform.

For E Money users, this integration unlocks new opportunities to grow their crypto holdings simply by holding assets in their wallet. Staking ETH has never been easier - users can earn passive income without complex setup or compromising access to their funds. This aligns perfectly with E Money's mission of bridging liquidity between traditional and decentralized finance.

Chorus One is excited to work with an innovative and compliance-focused platform like E Money. This partnership allows Chorus One to expand staking services to E Money Network’s user base while exploring possibilities in the emerging RWA tokenization space. RWA tokenization, led by E Money Network, could unlock liquidity for staked assets in the future.

"We're thrilled to partner with E Money Network and bring seamless staking to their community of users," said Sam Khler, Head of Business Development at Chorus One. "E Money's regulatory strengths and RWA capabilities create exciting opportunities as we work together to make staking more accessible."

Both Chorus One and E Money Network place a major emphasis on regulatory compliance, security and building trust with users. E Money Network has KYC and AML compliance integrated at the infrastructure level, while Chorus One is a pioneer in secure, regulated staking services for institutions.

"Partnering with an industry leader like Chorus One is a major milestone towards seamless accessibility for crypto staking," said Raj Bagadi, CEO of E Money Network. "E Money Network prides itself on compliance and user security; together we can provide a staking experience that prioritizes trust and simplicity."

As the crypto ecosystem continues evolving, strategic partnerships like this pave the way for real-world use cases and adoption of blockchain technology. The future is collaborative, compliant and user-friendly - and this alliance puts that vision into practice.

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The OPUS SDK

Our OPUS SDK allows any institution to seamlessly integrate secure Ethereum staking into their product with up to 90% reduced development time. It comes packed with institutional features like liquid staking and restaking to maximize yields. OPUS abstracts away the complex staking infrastructure while prioritizing security and compliance. With our industry-leading solution, you can effortlessly offer trusted ETH staking services to drive blockchain adoption for your users.

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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.

In blockchains, reliability and accessibility are key factors for increased web3 adoption, addressing certain bottlenecks in existing layer-1 protocol implementations. In distributed systems such as blockchain, the process of carrying out a transaction differs from modifying the ledger's state and recording the outcomes.

Aptos is designed in a modular way, which enables quick development and facilitates faster release cycles. Unlike monolithic architectures that require extensive time for editing, auditing, and testing, this modular approach allows changes to be focused on specific modules. This offers a systematic way to expand validators beyond just one machine by granting them access to more computational power, network capabilities, and storage options.

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A brief introduction to Aptos

Aptos is a Layer 1 Proof-of-Stake blockchain. It uses Move, a programming language developed from Meta’s Diem and Novi projects. Move is designed for safety and reliability, harnessing the power of Rust, a low-level programming language.

Aptos’ technological stack features many novel models, including the AptosBFTv4 consensus mechanism, the Quorum Store mempool protocol, the Block-STM parallel execution engine, and Move on Aptos. The transaction flow on Aptos is distinctly different from most competing networks, with every step of the process—from broadcasting transactions, ordering block metadata, to consolidating storage—happening concurrently in a modular fashion.

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Deep Dive into Aptos Consensus Mechanism - AptosBFT

AptosBFT, originally named DiemBFT, is a consensus algorithm developed by Diem’s core blockchain developers, many of whom now contribute to Aptos through Aptos Labs. AptosBFT implements increased throughput and lower latency compared to existing PBFT through a round-by-round consensus and block chaining. AptosBFT v4 enhances transaction processing speed through linear communication and chaining, improving synchronization speed among validators via a 'Pacemaker' and 'Timeout' mechanism.

The Aptos Labs team also introduced Quorum Store, an implementation of Narwhal. Quorum improves consensus throughput by decoupling data dissemination from network consensus. Before Quorum Store, transaction processing involved two major phases: Mempool and Consensus. An intermediate phase, the Quorum phase, was added between them. The Mempool holds potential user transactions, Quorum Store pulls batches of these transactions, broadcasts them, and forms proofs of their availability. Consensus orders these proofs, and execution uses Quorum Store to map them back to the corresponding transaction batches, thereby solving the problem of transaction redundancy efficiently.

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Architectural Design

DPoS - Delegated Staking: This serves as an expansion of the staking protocol. It involves a delegation pool acting as an intermediary between the stake owner and the validator. This pool can gather stakes from delegators and include them in the native stake pool linked to the validator on their behalf. This system enables various entities to meet the criteria for a validator to join the set by pooling stakes. Delegators have the option to contribute to an inactive pool, but rewards are only earned once it becomes active. The minimum stake is 11 APT, with the option to unstake at any time, but funds are not available until the next validator unlock date. Delegators are paid 8% of the service fees.

Move: Aptos blockchain seamlessly incorporates and utilizes the Move programming language for rapid and reliable transaction processing. The Move Prover, a formal validator for smart contracts written in Move, offers security against common errors, providing builders and developers tools to defend projects against attack vectors like double-spending.

Parallel Execution: Aptos handles transaction processing in parallel without requiring an upfront declaration of user-known dependencies, unlike other blockchains such as Solana and Sui. This approach facilitates more intricate transactions, reducing costs and latency for end users.

Transaction Flow: Aptos maximizes throughput and reduces complexity in transaction processing by dividing it into three stages: pipelining, batching, and parallel execution. These stages can be parallelized, enabling novel modes of validator-client interaction and enhancing development timelines by treating each phase as a separate entity. Transactions are organized into batches by each validator, merged into blocks through a consensus mechanism.

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Tokenomics

The native token of the Aptos ecosystem (APT token) serves multiple purposes:

• Transaction Fees: The native token pays for network transactions and rewards validators.
• Validator Staking: Token holders can stake their APT, contributing to the network's security and stability, and earning additional APT tokens.
• Governance: Token holders can participate in on-chain governance, voting on protocol upgrades, changes to economic parameters, and other proposals.

As of October 2022, the total token supply of APT is 1 billion tokens, with a circulating supply of 130,000,000.

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Aptos Ecosystem

The Aptos ecosystem is growing thanks to continued efforts to improve UX through safety and performance.

Decentralized Finance (DeFi): Several DeFi projects are building DEX Aggregator, DeFi HyperApp, Liquidity engine, and perpetual DEX on Aptos.

Improved User Experience (UX): Platforms are building tools and products to simplify the process of building scalable applications on Aptos.

On-chain Gaming: Platforms are using Aptos SDK to build multi-platform applications by bringing decentralization to Unity developers.

Aptos is also facilitating interoperability by launching bridges like Wormhole on Aptos that allow native Ethereum and Solana users to move into the Aptos ecosystem.

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Aptos’ Future

Technical Improvements: Contributors to the Aptos protocol are committed to making the network more scalable, performant, and robust. The team at Aptos Labs developed a solution for deep testing called  Previewnet that replicates what Aptos mainnet will look like in the coming months.

The team also unlocked a new record of >30k TPS  (Transaction per seconds) in the Previewnet. Aptos is striving to expand scalability even more, aiming for >100k TPS as their next goal on the path to surpassing 1 million TPS. This bold target is in line with Aptos' goal of building a platform that can cater to billions of users, paving the way for widespread adoption of Web3 technologies.

Ecosystem Partnerships: Aptos collaborates with industry leaders like Google Cloud, Microsoft, and MoonPay, indicating potential for future growth and adoption.

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Further Reading and Resources

Website: https://aptoslabs.com/

Developer Documentation: https://aptos.dev/

Twitter: https://twitter.com/Aptos

Telegram: https://github.com/aptos-labs

Github: https://github.com/aptos-labs

Discord: https://discord.gg/aptosnetwork

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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.

Before getting started with this edition of the Restaking Synopsis, we’d like to take a moment to highlight our uniqueAVS Selection Framework, that we announced on Thursday, May 9th!

TL;DR:

Since EigenLayer launched, operators have been busy onboarding every AVS out there. But there’s only 1 problem with that - this may not be a wise long-term approach.

We've detailed why in an article (linked below), and to summarize, here's what sets our approach apart:

🛑 No "Onboard All" Promise: We prioritize AVSs with breakout potential, filtering out those with complexity and risk.

✅ Rigorous Criteria: Our selection filters are based on strict engineering, security, and economic factors.

🎖Quality Over Quantity: Only AVSs that meet our criteria will be onboarded.

This reflects our customer-first principle and long-term vision for the EigenLayer ecosystem.

Feel free to check out the full article for more details on our AVS Selection Framework, why we're taking this unique approach, and why this approach is an important consideration for EigenLayer users.

Read the entire article here: https://chorus.one/articles/the-chorus-one-approach-to-avs-selection

🌟BONUS: Here's a meme-thread explanation of our AVS Selection: https://x.com/ChorusOne/status/1788928433461903496

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Ecosystem Highlights

1. Chorus One announces a unique AVS selection framework.
2. New AVS Supported by Chorus One: Lagrange. Details here.
3. EigenDA opens claims window for EIGEN on May 10 (Scroll down for details)
4. Chorus One joins the select group of operators running Eoracle's latest release on Mainnet.
5. Sreeram Kannan provides insights on intersubjective truth and use-cases of AVSs with intersubjective slashing.

Got LSTs? Restake them with EigenLayer using OPUS Pool!  

OPUS Pool enables you to seamlessly stake ETH, restake a variety of LST’s and delegate your restaked assets to Chorus One on a single platform.

✅ Stake, Restake, and Delegate using just a few, simple clicks

✅ Completely permissionless
✅ Easily view/download your entire historical staking rewards report

✅ View and track your restaked asssets

✅ All on a single platform

Visit OPUS Pool: https://opus.chorus.one/pool/stake/

Your guide to OPUS Pool: https://chorus.one/articles/your-guide-to-opus-pool-stake-mint-oseth-and-restake-with-eigenlayer

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EigenDA: The EIGEN claims window is open. 🔥

As of May 10, you can claim your EIGEN, restake it (if you haven’t already) and choose to delegate to an EigenLayer Operator for future rewards!

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The steps? ‍

1. Claim EIGEN here: http://claims.eigenfoundation.org

2. Restake it (if you haven’t already): http://app.eigenlayer.xyz/restake/EIGEN

3. Delegate your restaked assets to Chorus One: https://app.eigenlayer.xyz/operator/0xf80b7ba7e778abf08a63426886ca40189c7ef48a

Note: You can currently only restake and delegate your EIGEN via the EigenLayer dashboard.

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Final Word

If you’re interested in learning more about staking/restaking with Chorus One, simply reach out to us at staking@chorus.one and we’ll be happy to get back to you!

Additionally, if you’d like us to share further resources on any topic, please let us know!

Thanks for reading and see you next time!

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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.