Eigen Labs, the company behind the pioneering EigenLayer protocol, has announced the acquisition of the restaking platform Rio Network. This strategic move will see Rio’s intellectual property and codebase integrated into EigenLayer, significantly enhancing its capabilities.

On June 12, the Eigen Foundation disclosed that the acquisition involved two separate transactions, resulting in the foundation obtaining Rio Network’s intellectual property rights. Among these assets is Rio’s liquid restaking token (LRT) technology, which will be open-sourced as a reference implementation within the EigenLayer ecosystem.

Concurrently, Eigen Labs will onboard Rio’s development team, emphasizing the continued evolution and improvement of the EigenLayer protocol. The financial terms of the deal remain undisclosed.

In the blockchain sector, staking involves locking up cryptocurrency assets to support network operations and security, typically in proof-of-stake (PoS) systems. Restaking extends this concept by allowing these staked assets to simultaneously secure additional protocols or layers without needing to be unstaked from their original network. This enables users to maximize the utility of their assets, earning rewards from multiple sources.

EigenLayer and Rio Network both focus on optimizing the utility of staked assets but with different approaches. EigenLayer allows users to reuse their staked assets, such as Ether (ETH), to secure additional blockchains. In contrast, Rio Network offers a liquid representation of staked assets. Users deposit their assets and receive LRTs proportional to their stake, which can be traded on secondary markets while the original stake continues to generate rewards.

Think of EigenLayer as the railway tracks providing the infrastructure for staked assets to operate on-chain, while Rio Network functions more like a train ticket facilitating the process of restaking.

As of now, according to DefiLlama data, EigenLayer's total value locked (TVL) is approaching $20 billion. The protocol's mainnet, launched in 2023, followed a successful $50 million Series A funding round led by Blockchain Capital, with participation from Coinbase Ventures, Polychain Capital, Electric Capital, and Finality Capital Partner.

This acquisition marks a significant step for Eigen Labs, positioning it to further innovate and lead in the blockchain staking ecosystem. The integration of Rio Network’s technology is expected to bolster the EigenLayer protocol, offering users more versatile and efficient staking solutions.