Understanding (re)staking

Restaking in the Symbiotic Protocol enables efficient asset management and delegation across the ecosystem through a structured system of vaults and operators. This page explains the core mechanisms of these processes.

Asset Flow

The process begins when users deposit their assets into so-called vaults. Each vault accepts a single token (ETH, stablecoins, or other tokens) and functions as a secure container for stake movement throughout the ecosystem.

Stake Management

• Assets can be deposited into different vaults according to specific criteria
• Vault curators handle asset delegation to designated operators
• Operators may receive stake allocations from multiple vaults
• Networks maintain interactions with multiple vaults and operators

Delegation Types

Symbiotic implements different types of vaults to allow all participants to choose or combine delegation models that best suit their needs. The protocol supports four distinct delegation types that differ in how many operators and networks can be included in the same vault, each offering different combinations of efficiency and security features. The following sections explore these delegation configurations in detail:

1. Multiple Networks, Multiple Operators (MN, MO)

Professional entities like LRTs manage these vaults. They offer maximum capital efficiency by allowing a stake to be allocated across multiple operators and networks simultaneously. Note that some vaults managed by LRTs may be closed for direct deposits - in such cases, users need to deposit their funds into LRT-owned smart contracts, which then distribute these funds across multiple vaults.

2. Multiple Networks, Single Operator (MN, SO)

These operator-specific vaults allow restaking across multiple networks while maintaining operator-level isolation. The operator serves as the curator.

3. Single Network, Multiple Operators (SN, MO)

These vaults focus on a single network but can distribute a stake across multiple operators. They're typically managed by LST providers or Network DAOs.

4. Single Network, Single Operator (SN, SO)

The most straightforward type - one operator, one network. These provide maximum security isolation but the lowest capital efficiency.

Delegation types comparison

Let's compare the key characteristics of each delegation type for a clear overview of their unique properties, trade-offs, and ideal use cases. The following table breaks down the essential features across all four vault configurations:

Properties \ Delegation type	MN, MO	MN, SO	SN, MO	SN, SO
Restaking supported	✅	✅	❌	❌
Potential curators	LRT, Institutional restaking	Operator	LST, Network DAO	Users
User delegation model	Delegate to the curator as an entity to use stake for multiple operators in multiple networks	Delegate to the operator as an entity to use stake in multiple networks	Delegate to curator to use stake in single network	Delegate to the operator in the network directly (No curators)
Stake isolation for networks	❌	❌	✅	✅
Stake isolation for operators	❌	✅	❌	✅

The delegation types differ in several important aspects:

• Restaking Support: MN,MO and MN,SO support restaking, while SN,MO and SN,SO do not.
• Stake Isolation: Single Network types (SN,MO and SN,SO) provide network-level isolation, while Single Operator types (MN,SO and SN,SO) ensure operator-level isolation.

When a vault has network isolation, it means that the stake is dedicated uniquely to a single network. This prevents cross-slashing events, where slashing in one network could affect stake levels in others. Single Network (SN) type vaults provide this isolation, while Multiple Network (MN) types do not.

Operator isolation means that the stake is dedicated uniquely to a single operator. This protects against stake manipulation by malicious curators, as each operator's stake is separate and cannot affect others. Single Operator (SO) type vaults provide this isolation, while Multiple Operator (MO) types do not.

Security and Efficiency Trade-offs

Different vault types balance security and capital efficiency:

• High Capital Efficiency: MN, MO vaults allow maximum stake reuse but have broader security implications
• Balanced Approach: MN, SO vaults offer moderate efficiency with operator-level isolation
• Enhanced Security: SN, MO and SN, SO vaults provide stronger isolation but lower capital efficiency

Networks can combine multiple vault types to achieve their optimal balance between security and efficiency.