Liquid Staking

This article first introduces the functioning and risks of re-staking, mentioning Mellow Finance's new solution. It analyzes the strategic collaboration between the two and its impact on Lido. Finally, it summarizes the current market situation and offers future prospects.

AVS stands for Active Validation Services, a term that essentially describes any network requiring its own validation system (e.g., oracles, DA, cross-chain bridges, etc.), which can be understood as projects using restaking services. By comparing Eigenlayer, Symbioticfi, and Karak Network, we can see more mature solutions and development potential, illustrating how AVS and restaking technologies eliminate the burden of building underlying trust networks, allowing projects to focus on developing new features and better decentralization.

ETH holders have staked over $111 billion worth of ETH, accounting for 28% of the total supply. The amount of staked ETH is also referred to as Ethereum's "security budget" because stakers could face network penalties for double-spending attacks and other violations of protocol rules. In return for maintaining Ethereum's security, stakers earn rewards through protocol issuance, priority fees, and maximum extractable value. Users can easily stake ETH through liquid staking pools without sacrificing asset liquidity, leading to a higher demand for staking than Ethereum developers anticipated. This article will outline the staking situation on Ethereum, including the types of stakers, risks and rewards associated with staking, and predictions for staking rates. It will also provide insights into proposals by developers to adjust network issuance in response to high staking demand.

This article delves into the functionalities, operational mechanisms, team background, investment institutions, and core economic mechanisms of Bifrost Native Coin (BNC). As the heart of the Bifrost protocol, BNC stands out with its unique economic model and technical architecture, effectively addressing liquidity and security concerns within PoS systems. By employing an intermediary abstraction layer, parallel chain structure, and cross-chain interaction modules, Bifrost delivers a robust liquidity solution for staking assets across multiple PoS public blockchains. Moreover, BNC's diverse use cases and economic mechanism design ensure the system's long-term stability and ecological development.

Bitcoin's proof-of-work mechanism limits holders from earning yields directly through staking, despite Bitcoin's dominant position in market value. A significant amount of Bitcoin remains underutilized. Through the Master Protocol, users can stake Bitcoin on various Layer 2 solutions and receive LST as their staking certificate. This allows users to reinvest their LST in multiple scenarios without compromising liquidity, ensuring returns. By adopting the re-staking protocol, users can further stake LST to earn LRT, enhancing their investment capabilities and asset liquidity.

Symbiotic is a shared security protocol that acts as a coordination layer, enabling network builders to control and adjust their (re)staking strategies in a permissionless manner. Considering the current re-staking protocol EigenLayer supports only ETH and some ETH derivative staking, while Symbiotic supports staking of any asset following the ERC-20 token standard, the two may become direct competitors.

Symbiotic and Eigenlayer are two emerging protocols in the restaking field, but their design philosophies are vastly different. Symbiotic emphasizes permissionless and modular features, supports multi-asset and customizable parameters, and uses immutable core contracts, reducing governance risks. Eigenlayer, on the other hand, focuses on ETH and its derivatives, adopts a more centralized management approach, simplifying operations but presenting bundled risks. The launch of Symbiotic and its collaboration with the Mellow protocol offer more options and airdrop opportunities for the DeFi community. The competition and cooperation between the two will further drive the development of the restaking market.

This article introduces the decentralized social network application Farcaster, highlighting its architecture built on Ethereum and Optimism, aimed at achieving digital sovereignty and user ownership.

Zircuit is a zk Rollup that is fully compatible with EVM. It is currently in the testnet stage. It can be generally understood as Ethereum L2 using zk technology. In essence, it is still to solve the performance and efficiency problems of Ethereum itself and help transactions to execute better and faster. Compared with the OP architecture, Zircuit can achieve the fast and consistent performance of zkEVM Rollup without the challenge period of withdrawal transactions.

Discover Curvance, a modular DeFi protocol for optimized liquidity management. Learn about its features, multichain support, and future plans in this article.

Today, the shared security mechanism has evolved through staking, leveraging the value of cryptocurrencies like Bitcoin and Ethereum to provide security for multiple blockchain protocols. YBB Capital delves into the latest developments in the Bitcoin staking protocol Babylon and the Ethereum restaking protocol EigenLayer in this field, offering a detailed analysis of Babylon's three-layer architecture and its potential.

Mind is an AI restaking solution that ensures the token economy and data security of decentralized AI networks through flexible restaking and fully homomorphic encryption for consensus security. While EigenLayer uses restaking to secure different AVSs within the Ethereum ecosystem, Mind Network uses restaking to secure the consensus of various AI networks across the entire crypto ecosystem.

In 2023, the LST track competition has entered a "white-hot" stage, and many established track projects have fallen into "centralization conflicts." Puffer Finance proposes the native liquidity staking protocol (nLRP) and deeply integrates it with EigenLayer to increase profitability and increase the willingness of small and medium-sized node operators to participate in verification. Recently, the Puffer Finance mainnet was launched, and TinTinLand wrote an article introducing its innovative concepts and technologies.

The more microservices provided by the restaking market, the better the user experience. Users no longer need to choose services from multiple independent providers; instead, they can purchase all the required services from one restaking market. This article organizes the dynamics of restaking and provides further informational content for readers.

Re-staking is emerging as a technology gaining attention inside and outside the industry, allowing ETH already staked on the Ethereum mainnet to be reused to support the security of other projects. This method enables users to earn returns from their original staking while also increasing potential rewards by supporting more projects. EigenLayer's staking mechanism is significantly different from the Ethereum mainnet's PoS staking. This article analyzes the EigenLayer staking mechanism, the possible rewards, and the potential risks.