Eigen Labs, the creator of the EigenLayer protocol, has recently acquired the restaking platform Rio Network. This acquisition will result in the open-sourcing of Rio’s intellectual property code.
The acquisition, completed through two separate transactions, was announced on June 12. The Eigen Foundation will be taking over Rio Network’s intellectual rights, including its liquid restaking token (LRT) technology. This technology will be open-sourced as a reference implementation within the EigenLayer ecosystem.
Additionally, Eigen Labs has welcomed Rio’s team into its fold, with a primary focus on further developing EigenLayer. The financial details of the acquisition were not disclosed.
Staking in the blockchain world involves locking up cryptocurrency assets to support network operations and security, particularly in proof-of-stake (PoS) systems. This helps validate transactions and maintain consensus by using users’ staked assets. Restaking takes this concept further by allowing staked assets to secure additional protocols or layers without needing to be unstaked from the original network. Users are rewarded with crypto for staking tokens and securing networks.
EigenLayer and Rio Network both aim to optimize the utility of staked assets, though they have different approaches and goals. EigenLayer allows users to reuse their staked assets, such as Ether (ETH), to secure additional blockchains. On the other hand, Rio provides a liquid representation of staked assets. Users deposit their assets and receive an LRT in return, which can be traded on secondary markets while still earning rewards on their original stake.
In simple terms, EigenLayer can be seen as the railway tracks enabling staked assets to move on chain, while Rio acts more like a train ticket for restaking.
According to DefiLlama data, EigenLayer has nearly $20 billion in total value locked as of now. The protocol’s mainnet was launched in 2023 after securing $50 million in Series A funding from investors like Blockchain Capital, Coinbase Ventures, Polychain Capital, Electric Capital, and Finality Capital Partners.