Eigen Labs, the innovative company behind the EigenLayer protocol, has recently finalized the acquisition of Rio Network, a prominent restaking platform. In a strategic move, Eigen Labs has decided to make Rio Network’s intellectual property code open-source as part of the agreement.
The acquisition, completed through two distinct transactions, involves the Eigen Foundation taking ownership of Rio Network’s intellectual rights. This includes the revolutionary liquid restaking token (LRT) technology, which will now be available as a reference implementation within the EigenLayer ecosystem.
In addition to this, Eigen Labs has welcomed the talented team from Rio Network into their fold, focusing on further enhancing the capabilities of EigenLayer. While the exact financial details of the deal remain undisclosed, both companies are excited about the possibilities that lie ahead.
Staking in the realm of blockchain entails locking up cryptocurrency assets to support network operations and ensure security, particularly in proof-of-stake (PoS) systems where users’ staked assets play a crucial role in validating transactions and maintaining consensus. Restaking takes this concept a step further by allowing staked assets to secure additional protocols or layers without having to be removed from their original network. Users are rewarded with crypto for staking tokens and contributing to network security.
EigenLayer and Rio Network share a common goal of maximizing the utility of staked assets, albeit through different approaches. EigenLayer empowers users to leverage their existing staked assets, such as Ether (ETH), to secure additional blockchains. On the other hand, Rio Network offers a liquid representation of staked assets, allowing users to deposit their assets and receive LRT in exchange, which can be traded on secondary markets while still earning rewards on their original stake.
To draw an analogy, EigenLayer serves as the railway tracks facilitating the movement of staked assets on-chain, while Rio Network acts as a train ticket to the realm of restaking opportunities.
As per DefiLlama data, EigenLayer has amassed a total value locked nearing $20 billion at present. The protocol’s mainnet was launched in 2023 following a successful Series A funding round of $50 million led by Blockchain Capital, in collaboration with Coinbase Ventures, Polychain Capital, Electric Capital, and Finality Capital Partners.