Eigen Labs Acquires Restaking Platform Rio Network to Enhance Staked Asset Utility
Summary:
Eigen Labs, the developer of the EigenLayer protocol, has acquired the restaking platform Rio Network. The deal expands the EigenLayer ecosystem with Rio's liquid restaking token (LRT) technology, which becomes open source as a result. Additionally, the Rio team joins Eigen Labs, further contributing to the development of EigenLayer. The acquisition aims to optimize the utility of users' staked assets in blockchain through different methods employed by EigenLayer and Rio Network. The financial terms of the acquisition were not disclosed.
The EigenLayer protocol developer, Eigen Labs, has confirmed the purchase of restaking platform Rio Network. As part of the deal, Rio’s intellectual property code will be transformed into open source. The announcement, made on June 12, clarified that this acquisition was the result of two distinct transactions. The Eigen Foundation is obtaining the intellectual rights of Rio Network, incorporating its liquid restaking token (LRT) technology into the open-source realm, serving as an implementation reference within the EigenLayer ecosystem. Conversely, Eigen Labs will now be the home base for Rio’s team, with a focus on the development of EigenLayer. The deal's financial details were not made public.
For blockchains, staking involves holding crypto assets in a lock-up state to aid network operations and security. This is a common feature in proof-of-stake (PoS) systems, where users' staked assets contribute to transaction validation and consensus maintenance. Restaking enhances this concept, with staked assets providing security for additional protocols or layers without the need for unstaking from the original network. Crypto rewards are then given to users for their token staking and network security contributions.
Both EigenLayer and Rio Network aim to maximize the usefulness of staked assets albeit using different strategies and goals. EigenLayer lets users use their already staked assets, like Ether (ETH), to provide security for multiple blockchains. On the contrary, Rio offers a liquid representation of staked assets. Users can deposit their assets and get an LRT equivalent to their stake, which they can then trade on secondary markets while their original stake continues to generate rewards.
EigenLayer can be analogous to a railway track that allows staked assets to move onchain, and Rio can be likened to a train ticket for restaking. As per DefiLlama data, the total value locked in EigenLayer is nearing a whopping $20 billion currently. The protocol's mainnet was launched in 2023 after successfully raising $50 million in a Series A funding round. The round was led by Blockchain Capital, with significant contributions from Coinbase Ventures, Polychain Capital, Electric Capital, and Finality Capital Partner.
Published At
6/12/2024 8:48:52 PM
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