Eigen Labs Takes Over Rio Network and Opens LRT Code

Key takeaways:

• Rio Network, a restaking platform, has been acquired by Eigen Labs, the firm that created the EigenLayer protocol.
• Rio’s team has moved to Eigen Labs, where they are focusing especially on creating EigenLayer.

Rio Network, a restaking platform, has been acquired by Eigen Labs, the firm that created the EigenLayer protocol. As a result of the agreement, Rio’s IP code will become publicly available.

The acquisition was completed through two distinct transactions, according to a June 12 release. The liquid restaking token (LRT) technology of Rio Network, which will be made publicly available as a model implementation within the EigenLayer ecosystem, is among the intellectual property that the Eigen Foundation is purchasing from Rio Network.

Rio’s team has moved to Eigen Labs, where they are focusing especially on creating EigenLayer. The transaction’s value was not disclosed by the firms.

In blockchain staking, crypto assets are locked up to support network security and operations. This is commonly done in proof-of-stake (PoS) systems, where users’ staked assets support consensus maintenance and transaction validation. 

This idea is furthered by restaking, which enables staked assets to concurrently secure further protocols or layers without requiring them to be unstacked from the original network. Staking tokens and protecting networks earn users crypto benefits.

While EigenLayer and Rio Network have different methods and goals, they both aim to maximize the utility of staked assets.

With EigenLayer, users may secure more blockchains by reusing their staked assets, such as Ether. In contrast, Rio provides a liquid depiction of staked assets. After depositing their assets, users get an LRT equal to their stake, which they may trade on secondary markets and keep earning rewards from their initial stake.

In other words, consider EigenLayer as the on-chain train tracks on which staked assets travel, whereas Rio is more comparable to a train ticket for restaking.

DefiLlama data indicates that EigenLayer has locked in a total value of around $20 billion.

After raising $50 million in Series A funding led by Blockchain Capital, including Coinbase Ventures, Polychain Capital, Electric Capital, and Finality Capital Partner, the protocol’s mainnet was released in 2023.