Lido-aligned EigenLayer Competitor Symbiotic Launches

The restaking service Symbiotic, which is backed by the founders of staking heavyweight Lido, launched today, offering the most formidable competitor yet to EigenLayer.

What's the scoop?

• Gunning for EigenLayer's position: Symbiotic had been one of the most-hyped restaking players yet to launch. The team's close relationship with Lido's inner circle has made them a potent upstart.
• Paradigm Funding: Symbiotic announced a $5.8 million seed raise from venture firm Paradigm and the Lido founders' investment firm Cyber.Fund
• Mellow Launch: Mellow Finance launched alongside Symbiotic as its first LRT service. Part of the Lido Alliance, an initiative to make stETH a foundational restaking asset, Mellow’s vaults are stETH-centric, helping Lido and Symbiotic gear up to compete with EigenLayer.

Bankless Take:

Symbiotic's launch could be the official kickoff to the restaking wars. After experiencing declining market share since March, Lido’s TVL rebounded 21% this past month. With broad dissatisfaction around how EigenLayer handled the EIGEN airdrop, there may be space for Symbiotic to find a foothold in restaking though, EigenLayer has an awfully big headstart. While EigenLayer still reigns supreme, it’s continued to experience slower growth. Given stETH remains the largest non-L1 DeFi asset, if Symbiotic and Lido create competitive yields for holders, it could go a long way to making the asset a critical element of the restaking ecosystem.