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Analysis

The Next Crop of Restaking Tokens

Five airdrops to hunt on the restaking frontier.
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Jun 21, 20243 min read

With EIGEN rolling out the second phase of its major drop, restaking bulls are wondering what comes next.

In the Bankless Airdrop Hunter, our analysts have been dialing into the tokenless restaking protocols that are poised to hit it big – focusing on both the liquid restaking token projects built around EigenLayer and the more ambitious competitors trying to straight-up topple EigenLayer's kingpin status.

EigenLayer's EIGEN drop wasn't received all that well by the crypto community, and as recipients wait for their stakedrop tokens to unlock, depositors are actively scouring for new opportunities. While Karak Network's multi-chain solution has seen some momentum since EIGEN's release, there's been considerable hype around Lido's backdoor entry to the space through Symbiotic, a fresh restaking protocol backed by Lido's founders.

Below, let's dig into the 5 restaking ecosystem protocols we're hunting 👇


If you want step-by-step guides to hunt these yourself, get access to our Airdrop Hunter app by becoming a Bankless Citizen.

🧬 Symbiotic

Website | Twitter

About:

Symbiotic is a new restaking service for a wide array of onchain assets, not only LSTs, backed by the founders of staking heavyweight Lido. Positioned as an EigenLayer competitor, Symbiotic aims to leverage its close ties with Lido's inner circle and support from key industry players. The protocol started with a $5.8M seed raise from venture firm Paradigm and Lido founders' investment firm Cyber.Fund.

Why we’re watching:

The recently launched Lido-partnered and Paradigm-backed EigenLayer competitor boasts a points program to gain traction in the restaking landscape. As with all points campaigns, these will most likely be eligible to be exchanged for a token at some point in the future. Further, the market's reaction to EigenLayer's token launch sets up a perfect opportunity for competing restaking protocols to launch more attractive campaigns.


🎯 Mellow Protocol

Website | Twitter

About:

Mellow Protocol provides a modular and permissionless infrastructure for Liquid Restaking Tokens (LRTs) on any staking protocol that allows users to choose their level of risk through curated vaults. Mellow's vision aligns with Symbiotic, enabling true permissionless restaking flexibility. Further, as a partner of the Lido Alliance, Mellow helps Lido operators launch their own LRTs, boosting stETH usability and adding revenue for Lido DAO members.

Why we’re watching:

Mellow Protocol was launched alongside Symbiotic, the new Paradigm-backed and Lido-partnered EigenLayer competitor, as a restaking project in its ecosystem. Currently, Mellow is running a points program that incentivizes depositors from both Mellow and Symbiotic, with the implication being they will translate to liquid token allocations in the future.


🟧 Karak Network

Website | Twitter

About:

Karak Network is a multi-collateral restaking layer that allows users to restake various assets on multiple chains, boosting yields. The Karak L2 provides a secure environment for developing and launching distributed services.

Why we’re watching:

Karak has an active points program that is rewarding depositors during the private access period with Karak XP! Projects often implement a points system as a precursor to an airdrop to help identify accounts contributing towards their success with the intention of rewarding them with tokens at a later date.


🐡 Puffer

Website | Twitter

About:

Puffer is a decentralized native liquid restaking protocol built on EigenLayer. As a permissionless protocol, Puffer will allow anyone to join as a node operator with as little as a 1 ETH bond.

To align incentives and ensure that node operators are performing, Puffer will also require validators to hold "Validator Tickets," a consumable item that expires every day and can be purchased from Puffer at a price equal to the validator's expected daily income or on the secondary market. Because validators consume validator tickets for every day they stake, they are entitled to 100% of their rewards.

Why we’re watching:

Protocols frequently adopt points systems to identify accounts contributing towards their success with the intention of rewarding them with tokens in the future and Puffer is currently running a points program, suggesting that it may airdrop tokens to early depositors in the future. Additionally, users who stake to receive pufETH qualify for points distributions from partner projects, including the upcoming  AI-driven DePIN rollapp Rivalz and Ethereum L3 Olive.


🌱 KelpDAO

Website | Twitter

About:

KelpDAO restakes your liquid staking tokens (stETH and ETHx) with EigenLayer for liquid staked rsETH. By staking your ETH with KelpDAO, you'll be eligible to earn EigenLayer restaking points (once your deposit is staked) and will be able to earn extra yield from restaking when services go live!

Because restakers with KelpDAO retain liquidity on their stake, they can use rsETH in DeFi protocols to earn additional yield.

Why we’re watching:

Depositors into KelpDAO are rewarded with "Miles," the protocol's equivalent of points. Projects often implement a points system as a precursor to an airdrop to help identify accounts contributing towards their success with the intention of rewarding them with tokens at a later date.

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.

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