Introduction to Symbiotic
Published · Updated
Introducing Symbiotic, the latest innovation in the Restaking space!
With over $2B TVL in pre-stake collateral, Symbiotic poses a fascinating approach to the Restaking ecosystem, an abstraction that has garnered significant attention this year.
The Symbiotic team describes it as:
a “cutting-edge permissionless staking protocol that enhances network security and capital efficiency. By enabling flexible and decentralized economic agreements, Symbiotic supports a wide range of applications and empowers network participants permissionless.”
source: https://symbiotic.fi
The Layers of Symbiotic
Collateral serves as the economic security layer, where users can deposit a variety of assets, including, but not limited to, ERC20 tokens, withdrawal credentials of Ethereum validators, or LP positions utilized in DeFi. Symbiotic’s mission is to be chain agnostic, where assets outside of the Ethereum ecosystem can be leveraged to secure Networks built on top of their platform.
Vaults represent the (re)staking layer. They are responsible for delegating collateral to Operators either in a custom manner or via Operator-specific vaults. Furthermore, Symbiotic’s modular architecture allows vaults to manage accounting, delegation strategies, rewards distribution, slashing, and collateral specifications. This intermediary layer serves as a connecting point between Networks and operators, where users can delegate their assets.
Operators are the engines that power Symbiotic’s respective Networks. These entities run infrastructure to maintain services required by Networks, so it is essential to delegate assets to an Operator with a strong reputation and track record (like P2P.org!).
Resolvers are the checks and balances of Symbiotic. Since this platform is inherently flexible, resolutions for slashing can come in several different forms. Slashing terms are set at the vault level and can be passed to specific entities, smart contracts that review slashing penalties, or leverage external dispute resolution frameworks.
Networks built on top of Symbiotic to attract economic security. These trust-minimized services include but are not limited to decentralized sequencing of transactions, off-chain consensus, and automation. In return for the economic security restakers and operators provide, networks create their own incentive mechanisms and slashing conditions to reward good actors and punish malicious behavior.
Symbiotic Value Proposition
- Asset support- Symbiotic’s goal is to create a thin unified coordination layer with nearly unlimited possibilities in asset support for vault collateral (ERC-20, chain agnostic, LP positions in DeFi)
- Note: Collateral designated by a vault must be agreed upon by both Operators and Networks for there to be a Symbiotic relationship ;)
- Flexibility—Networks can adjust security parameters and utilize various assets to reach their optimal performance for economic security.
- Decentralized Resolution—Slashing is determined at the vault level and can be delegated to decentralized entities (which can also select more than one framework).
- Decentralized Architecture + Robust Security—Symbiotic’s core contracts are non-upgradeable which significantly reduces governance risks and eliminates points of failure
Vault Coordination
For operator-specific vaults, a user deposits collateral into a Symbiotic vault of their choosing. The funds deposited in the vault are then delegated to a specific Operator (e.g., the P2P.org vault), who is responsible for managing the infrastructure. In return, Networks leveraging this vault will reward the Operators and the Restakers for participating.
For LRT-specific vaults, a user deposits collateral through an LRT platform (e.g., Mellow Finance, ether.fi, Renzo, Puffer). In return for the collateral, these LRT platforms generate a liquid LRT token, which is given back to the user to manage the yield and can be used in alternative DeFi strategies.
From there, the LRT platform deposits into the Symbiotic vault on behalf of the user. This vault is customized based on the arrangement deemed by the curator (opt-ins with Operators and Networks) to earn rewards.
FAQ
How can I do restaking for Symbiotic?
While Symbiotic is not yet in mainnet, there are a couple of ways to get involved!
- Visit https://symbiotic.fi to restake and earn Symbiotic points ahead of mainnet release, or
- Visit https://app.mellow.finance/vaults/ethereum-rsteth to restake in P2P’s exclusively curated vault to earn Mellow and Symbiotic points.
- Once Symbiotic is officially live on the mainnet, users can restake directly on the Symbiotic platform and delegate to a trusted Operator(s) of their choosing (P2P.org!).
What are restaking points?
Symbiotic restaking points measure a restaker’s contribution to the Symbiotic Finance protocol. This is calculated by tracking the amount restaked in pre-stake collateral and the time restaked. Once vaults are live in the mainnet, the Symbiotic points system will be adjusted where most of the points emission will be re-directed to vaults.
Mellow Finance restaking points are given to early adopters who facilitate the growth and success of the Mellow ecosystem. This is measured by tracking the amount of assets restaked and the length of time in a given Mellow vault.
💡 Note: While the Symbiotic or Mellow team has not officially announced the purpose of the points system or whether it will translate to future token airdrop allocation, Restakers/ Operators/ Vault Curators are anticipating potential future rewards.
What is slashing?
Penalization of participating Operators in a Network for not fulfilling the technical requirements necessary to support adequately or for malicious behavior.
How does Symbiotic handle slashing?
Symbiotic leverages a unique framework where slashing is handled transparently. ‘Resolvers are entities, smart contracts, or decentralized resolution frameworks that can veto such incidents to improve overall security for participants.
Immediate slashing: When a violation is detected, the Network sends a slashing request to the vault, and the vault’s slasher module processes the request.
Veto-based slashing- a veto period begins when the vault’s designated resolver(s) block or approve the slashing.
How secure is Symbiotic platform design?
Symbiotic's unique value proposition is that its core contracts are non-upgradeable (like Uniswap). The immutability of these contracts eliminates risks from external governance processes and potential points of failure. Symbiotic's mission is to eventually become a fully decentralized application.
How are Symbiotic vaults managed?
Symbiotic’s modular approach helps diversify risk since Stakers, Operators, and Networks can opt- into multiple vaults rather than only a single vault.
Vaults can have multiple operators, which helps prevent downtime and reliance on a single point of failure.
How to exit from Symbiotic and Mellow Finance vault?
For Symbiotic, withdrawal periods are set at the vault level, allowing restakers to choose a vault that meets their withdrawal wait time needs. During withdrawal periods, access to funds is delayed so that restakers may face potential circumstances such as slashing and token price volatility.
For Mellow Finance, withdrawals are handled by vault curators in batches within 1-4 days. In emergencies, users can force the withdrawal themselves if 90 days have passed since the withdrawal request.
About Us:
P2P.org is an early supporter of Symbiotic and its corresponding Networks that leverage the platform. We are excited to extend our support as Node Operators and continue to make restaking as safe and secure as possible.
We've prepared this comprehensive FAQ to answer all your questions about Symbiotic Restaking. We encourage you to read it to gain deeper insights into how restaking works.
But in case you still have some questions:
Contact Us
We are always open to communication. Do not hesitate to ask questions in our Telegram chat. For any questions or support, please get in touch with our team at [email protected].
We encourage you to check our website and start our staking journey together!
- Web: https://p2p.org
- Blog: https://p2p.org/economy
- Twitter: @p2pvalidator
- Telegram: https://t.me/P2Pstaking
Kamil Jakub Natil