EigenLayer Acquires Rio LRT Technology

The Eigen is acquiring Rio Network’s intellectual rights and will open-source its liquid restaking token as a reference implementation in EigenLayer ecosystem.

The restocking platform Rio Network has been acquired by Eigen Labs, the company responsible for the EigenLayer protocol. Rio’s intellectual property code will be made open source as part of the agreement.

The acquisition was executed through two distinct transactions, as indicated in an announcement on June 12. The Eigen Foundation is acquiring the intellectual property rights of Rio Network, which includes its liquid staking token (LRT) technology. This technology will be open-sourced as a reference implementation in the EigenLayer ecosystem.

In the interim, Rio’s staff has relocated to Eigen Labs, where they are focused on the advancement of EigenLayer. The corporations did not disclose the deal’s value.

In proof-of-stake (PoS) systems, staking in blockchain entails the locking up of crypto assets to support network operations and security. Users’ staked assets are used to validate transactions and maintain consensus.

Restocking broadens this concept by enabling staked assets to simultaneously secure additional protocols or layers without being unstacked from the original network. For safeguarding networks and staking tokens, users are awarded crypto rewards.

EigenLayer and Rio Network prioritize optimizing staked assets despite pursuing distinct objectives and methodologies.

EigenLayer allows users to repurpose their previously staked assets, such as Ether, to secure additional blockchains. In contrast, Rio provides a liquid representation of staked assets.

Users deposit their assets and receive an LRT proportional to their interest. This LRT can be traded on secondary markets while their original stake continues to earn rewards.

Consider EigenLayer as the railway tracks that provide the infrastructure for staked assets to travel on-chain, while Rio is more akin to a train ticket to restocking.

EigenLayer’s total value locked-in is approaching $20 billion at writing, as indicated by DefiLlama data. Blockchain Capital, Coinbase Ventures, Polychain Capital, Electric Capital, and Finality Capital Partners led the $50 million Series A funding round to introduce the protocol’s mainnet in 2023.