Tech
Eigen Labs to Acquire Rio Network for Restaking Tech
The Eigen Foundation has announced the purchase of the intellectual property rights of Rio Network. As a result, this will enable the open source and integration of Rio’s innovative liquid restaging token (LRT) technology into the EigenLayer ecosystem.
The acquisition took place through two parallel agreements. First, the valuable LRT technology was acquired by the Eigen Foundation with the intellectual property rights of Rio Network.
According to announcement, a qualified team of experts with over 75 years of experience in the Rio crypto industry was also brought on board by Eigen Labs, the entity behind the cutting-edge EigenLayer protocol. From now on, this talented crew will focus on further improving EigenLayer.
Proof of Stake blockchain networks have made staking and re-staking viable terminologies. Once they hold their crypto coins, validators can secure transactions and earn rewards in exchange for keeping them under lock and key. Furthermore, restaking goes ahead to allow these staked assets to underwrite more than one protocol at a time without leaving their original network due to unstaking.
EigenLayer and Rio Network had similar goals regarding optimizing the utility of staked resources, but differed in the methods used. When you already have stakes on other blockchains like Ether, you can use them as security for another chain using the EigenLayer structure.
Meanwhile, Rio has provided liquid tokens, which represent the user’s share that can be traded while still earning rewards.
An apt analogy is that EigenLayer acts as a rail infrastructure allowing the transfer of staked assets, while Rio issues “tickets” for re-possession. With the total value locked in EigenLayer approaching an immense $20 billion, this bold move could usher in a new era of regaining dominance.
Read also: MetaMask presents a cost-effective pooled staking feature for Ethereum