Eigen Labs, the innovative company responsible for the development of the EigenLayer protocol, has recently completed the acquisition of Rio Network, a leading restaking platform. As part of this agreement, Rio’s intellectual property code will be released as open-source software.
The acquisition, finalized through two separate transactions, involves the Eigen Foundation taking ownership of Rio Network’s intellectual rights. This includes the groundbreaking liquid restaking token (LRT) technology, which will be integrated as a reference implementation within the EigenLayer ecosystem.
In addition to this, Eigen Labs has welcomed Rio’s team into its fold, with a strong focus on advancing the capabilities of EigenLayer. While the specific financial terms of the deal were not disclosed, both companies are enthusiastic about the collaboration.
Staking in the blockchain realm refers to the process of locking up cryptocurrency assets to support network operations and security, particularly in proof-of-stake (PoS) systems. Restaking, on the other hand, allows users to secure multiple protocols or layers simultaneously without disrupting their original stake. In return for staking tokens and safeguarding networks, users receive crypto rewards.
EigenLayer and Rio Network share a common goal of maximizing the utility of staked assets, albeit through different approaches and objectives. EigenLayer empowers users to leverage their existing staked assets, such as Ether (ETH), to secure additional blockchains. In contrast, Rio offers a liquid representation of staked assets, where users receive LRT in exchange for their stake, which can then be traded on secondary markets.
To draw an analogy, EigenLayer can be likened to railway tracks that facilitate the movement of staked assets on the blockchain, while Rio functions more like a train ticket for restaking.
According to data from DefiLlama, EigenLayer’s total value locked is approaching $20 billion. The protocol officially launched its mainnet in 2023 after raising $50 million in Series A funding led by prominent investors like Blockchain Capital, Coinbase Ventures, Polychain Capital, Electric Capital, and Finality Capital Partner.