Paradigm-backed Symbiotic has unveiled its new restaking protocol, which officially launched yesterday following a successful $5.8 million funding round from Paradigm and cyber.Fund.

The protocol introduces a novel approach where user deposits are utilized to secure third-party networks through a shared security model. This initiative puts Symbiotic in direct competition with Ethereum’s pioneering restaking protocol, EigenLayer.

Similar to EigenLayer, Symbiotic addresses common challenges in blockchain development and network security by reallocating existing staking capital and infrastructure. Depositors on Symbiotic earn rewards for contributing to the security of supported third-party networks. The protocol features a modular design that is flexible and configurable, accommodating a wide array of tokens as restaked collateral. It also supports customizable slashing and reward mechanisms.

The launch of Symbiotic marks the beginning of its bootstrapping phase, which includes the integration of restaked collateral. Additionally, Symbiotic has introduced Mellow, the first liquid restaking platform associated with the protocol.

Setting itself apart from EigenLayer, Symbiotic allows the use of various ERC-20 tokens, not restricted to ETH or specific derivatives. This inclusivity is expected to attract a diverse range of tokens and potentially increase protocol inflows.

Initially focusing on staked ETH (stETH), Symbiotic plans to expand its compatibility to encompass a broader spectrum of protocols. This expansion will grant third-party protocols control over critical aspects such as asset support and node operator selection.

According to the project, Symbiotic's modular architecture offers high flexibility, supporting a mix of tokens for restaked collateral while enabling fully configurable slashing and reward mechanisms.

Several projects across different stages of decentralization have already begun exploring Symbiotic’s restaking primitives. Notable integrations include Ethena, Chainbound’s Bolt, Hyperlane, Marlin’s Kalypso, Fairblock, Ojo, and Rollkit, among others.

With its innovative approach and robust backing, Symbiotic aims to play a pivotal role in enhancing blockchain security and efficiency through its versatile restaking protocol.