Ethena Supports Restaking of ENA and sUSDe through LayerZero and Symbiotic
Ethena Labs introduces a mechanism for restaking ENA and sUSDe tokens through Symbiotic and LayerZero. The ENA staking pool on Symbiotic will be launched on June 26.
Ethena Supports Restaking of ENA and sUSDe through LayerZero and Symbiotic
On the morning of June 18, the stablecoin project Ethena announced the implementation of a restaking mechanism for ENA and sUSDe tokens through the cross-chain solution LayerZero and the restaking protocol Symbiotic, a project expected to rival EigenLayer.
Today marks an important step forward in more closely aligning the growth and use of $USDe with $ENA
— Ethena Labs (@ethena_labs) June 17, 2024
The launch of a generalized staking capability for $ENA with @symbioticfi and @LayerZero_Labs is the first step in adding functional utility for $ENA within the Ethena ecosystem pic.twitter.com/TQEZTTV1uQ
Ethena will trial a restaking model linked with Symbiotic, where the restaked ENA will verify cross-chain transactions through LayerZero’s DVN network, enhancing the security of the future Ethena Chain.
ENA Restaking Model
DVN, or Decentralized Verification Network, is used to verify transactions sent on LayerZero. Each DVN provides a different verification model, allowing projects to determine their own DVN verification model and choose the most suitable token to enhance system security.
The ENA restaking model will serve as a standard for deploying DVN restaking for projects within the LayerZero ecosystem. If sUSDe is used for restaking, it will maintain the protocol’s security during validator slashing periods while providing stable returns without issuing additional tokens, thereby reducing costs for restaking participants.
In the next epoch of Symbiotic, ENA and sUSDe will be the first assets supported for restaking on the protocol. The ENA pool will launch on Symbiotic on June 26.
Additionally, Ethena announced that starting June 17, any user receiving ENA through airdrop must lock at least 50% of the received ENA into one of three pools: Locked Ethena, PT-ENA on Pendle, or Restaked ENA. Failure to comply will result in the project redistributing all unclaimed ENA to other users who have locked their tokens.
Ethena emphasizes that this move aims to encourage users to hold ENA and support the project long-term rather than speculating.
