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Collaborative Obstacles Confront EigenLayer as TVL Surpasses $1.2 Billion

Symbiotic's Total Value Locked surpasses $1 billion in a brief timespan.

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Struggles Faced by EigenLayer as Total Value Locked Reaches a Notable $1.2 Billion
Struggles Faced by EigenLayer as Total Value Locked Reaches a Notable $1.2 Billion

Collaborative Obstacles Confront EigenLayer as TVL Surpasses $1.2 Billion

In the ever-evolving world of decentralized finance (DeFi), a new player is making waves. Symbiotic, a decentralized restaking protocol, has emerged as a significant contender, boasting a current TVL (Total Value Locked) of $1.24 billion according to DefiLlama.

Symbiotic, backed by Lido - the leading liquid staking protocol with the largest TVL in DeFi - was launched in June as an alternative to EigenLayer, the second-largest DeFi application and the largest restaking protocol with over $15.5 billion in TVL. Unlike EigenLayer, Symbiotic enables the use of multiple ERC-20 tokens, providing a modular and flexible restaking platform.

This adaptable nature of Symbiotic has caught the attention of several projects, including Ethena, Hyperlane, Ojo, Fairblock, and Kalypso, who are exploring the use of Symbiotic's restaking solution. The platform's ecosystem is expanding through partnerships and early adopter campaigns, suggesting onboarding efforts that likely include these emerging projects.

One of the key attractions for these projects is Symbiotic's interoperability and flexibility, which fits the profiles of projects like Hyperlane (a cross-chain messaging protocol) and Kalypso (infrastructure or DeFi-related). SymbioticFi, for instance, hosts restaking vaults such as the mETH vault launched by Mantle Network, showcasing its growing adoption in the DeFi space and institutional-grade products.

As of the current writing, wrapped stETH (WSTETH) accounts for nearly 90% of the three supported tokens on Mellow, the main liquid restaking protocol on Symbiotic, with almost $600 million in TVL. Symbiotic works similarly to EigenLayer, repurposing staked Ether and liquid staking tokens to maximize potential rewards.

Looking ahead, Symbiotic is expected to host a growing ecosystem of liquid restaking platforms, similar to EigenLayer which hosts platforms like Ether.fi. This expansion could further solidify Symbiotic's position in the DeFi landscape and attract more projects seeking to leverage its infrastructure for decentralized security and staking rewards.

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