July 14, 2024
People in Crypto

Eigen Labs Acquires Rio Network, Boosts Restaking Capabilities

Eigen Labs Acquires Rio Network, Expands Restaking Capabilities

Eigen Labs, the company behind the EigenLayer protocol, has announced the acquisition of the restaking platform, Rio Network. This strategic move aims to enhance the EigenLayer ecosystem by integrating Rio’s innovative restaking technologies.

Acquisition Details and Open-Source Commitment

The acquisition, completed through two separate transactions, was disclosed on June 12. The Eigen Foundation will acquire Rio Network’s intellectual property, including its liquid restaking token (LRT) technology. This technology will be made open source, serving as a reference implementation within the EigenLayer ecosystem. By doing so, Eigen Labs aims to foster innovation and collaboration in the blockchain space.

The Rio Network Team Joins Eigen Labs

In addition to acquiring Rio Network’s intellectual rights, Eigen Labs will also integrate Rio’s team. The combined expertise will focus on further developing the EigenLayer protocol. Although the financial details of the deal remain undisclosed, the collaboration promises significant advancements in restaking capabilities.

Restaking, an extension of the traditional staking concept in blockchain, allows staked assets to secure multiple protocols simultaneously without being unstaked from the original network. This process not only enhances network security but also provides users with additional crypto rewards.

Enhancing Staked Asset Utility

EigenLayer and Rio Network both optimize the utility of staked assets, but with distinct approaches. EigenLayer enables users to reuse their staked assets, such as Ether, to secure additional blockchains. Conversely, Rio Network offers a liquid representation of staked assets. Users deposit their assets and receive an LRT proportional to their stake, which can be traded on secondary markets while continuing to earn rewards from the original stake.

An analogy to illustrate their relationship is that EigenLayer serves as the railway tracks providing infrastructure for staked assets to move on-chain, whereas Rio acts like a train ticket facilitating restaking.

Strengthening the blockchain ecosystem

According to DefiLlama data, EigenLayer’s total value locked (TVL) is approaching $20 billion, reflecting its significant market presence. Launched in 2023 after securing $50 million in Series A funding led by Blockchain Capital, with participation from Coinbase Ventures, Polychain Capital, Electric Capital, and Finality Capital Partner, EigenLayer is well-positioned for growth. The acquisition of Rio Network and the open-sourcing of its technologies are expected to further bolster the capabilities and adoption of EigenLayer, reinforcing its role in the blockchain ecosystem.

Image by rawpixel.com on Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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