The (re)staking concept underpins the design of Symbiotic. This is the allocation of capital in a modular manner, while securing networks and receiving returns. Traditional staking models involve locking tokens within a single network or operator, but Symbiotic has developed a robust structure to facilitate (re)staking using vaults. Vaults are secure containers that manage capital across networks and operators in an intelligent manner that balances risk, security, and efficiency based on participant preferences.

A participant in Symbiotic who puts capital into the system does not leave the capital idle. Rather, the capital is deposited into vaults, smart contracts that manage delegation. Vaults eliminate much of the complexities associated with staking, allowing a participant to choose a strategy aligned with their risk appetite and look for returns.

Vaults will spread stakes across operators and networks based on predetermined rules. Some vaults are specific and offer more security but have lesser exposure to risk, whereas some vaults are more general and diversified that emphasize yield and efficiency. This creates a range of participants with varying preferences for returns or safety, or some combination of yields and safety.

Symbiotic creates four main vault classifications depending on whether they distribute across networks and/or operators. These vault classifications are commonly known as:

1. MN-MO (Multi-Network, Multi-Operator):
   These vaults distribute stake across multiple operator(s) and multiple networks (also known as “cross-network”).

   They provide the highest efficiency and strongest diversity, while minimizing reliance on any single actor and/or system.

   However, because these vaults may not be isolated from each other, and exits could happen in one network (or possibly operator), this dependence could degrade vault performance at some level.

   Best suited for participants who want broader exposure and the most efficiency.

2. MN-SO (Multi-Network, Single-Operator):
   For this vault type, participant stake distributes across multiple networks but with one operator.

   It provides some network-level diversification, while exhibiting operator-level loyalty and trust.

   Best suited for participants who have a strong-trust relationship with one specific operator, while still wanting to participate in multi-network environments.

3. SN-MO (Single-Network, Multi-Operator):
   These vaults are focused on only one network to concentrate stake across multiple operators.

   They allow high levels of network-level isolation, so risks are contained to a single network.

   At the same time, diversification across operators adds redundancy against operator-level failures.

   For participants that wish to focus on supporting one network, but want to hedge against operator risk.

4. SN-SO (Single-Network, Single-Operator):
   The most intense and concentrated vault, where the capital is delegated to one operator within a single network.

   Offers maximum isolation and focus while being the least efficient.

   Returns rely completely on the performance and honesty of one operator, in one network.

   Ideal for participants really concerned with security guarantees and simplicity over diversification.

These vaults depict the risk vs. return dichotomy inherent in staking.

Vaults that distribute the capital over many systems (MN-MO) are more efficient, yielding greater aggregate returns given the benefit of diversification. However, they don't isolate fully, and therefore, are exposed to risk across multiple systems.

Vaults that target a specific capital system (SN-SO or SN-MO), provide more isolation, protecting participants from systemic risks. The trade-off here is less efficiency and lower aggregate returns.

This modularity is one of the greatest strengths of Symbiotic. Participants can self-select their position in the spectrum of risk for potential rewards.

Symbiotic's system provides broader abilities than just staking; it also allows for restaking, which allows previously staked capital to be used again to secure an advanced network or operator. Restaking increases the usefulness of contributed capital because the same resources can provide security for multiple systems simultaneously.

This generates a network effect, wherein a network becomes more secure as additional stakers stake and restake, without having to require new inflows of capital. For stakers, this means their capital contribution can increasingly generate returns, as their contribution is deployed across multiple contexts. Vaults are the process that enables this, automatically redistributing restaked capital based on the selected strategies.

Participants are ultimately faced with a choice based on their own preferences:

Risk-averse participants are more likely to choose SN-SO or SN-MO vaults, which have exposure limited to a single network with more selective operator distribution.

Return-seeking participants will gravitate toward MN-MO vaults, where broader exposure to yield and efficiency is preferable.

There are also balanced strategies available that consist of actively mixing vault types or simply shifting back and forth over a long time scale.

By delivering these unique options, Symbiotic enables participants to intentionally orient their own staking strategy rather than being confined on a one-size-fits-all staking strategy.

Understanding (re)staking in Symbiotic effectively means getting an idea of how vaults serve as safe, modular containers that handle distributions of stake. There are four types of vault delegation: MN-MO, MN-SO, SN-MO, and SN-SO. The vaults' flexibility enables participants to decide if they want efficiency, diversification, isolation, or protection. The vaults allow you to stake and/restake. So, the capital can work even harder for you by securing multiple networks at the same time. This combination provides flexible participation with the necessary safety and allows participants to express their own risk-to-reward preferences while supporting the overall resiliency of the Symbiotic ecosystem.

The (re)staking concept underpins the design of Symbiotic. This is the allocation of capital in a modular manner, while securing networks and receiving returns. Traditional staking models involve locking tokens within a single network or operator, but Symbiotic has developed a robust structure to facilitate (re)staking using vaults. Vaults are secure containers that manage capital across networks and operators in an intelligent manner that balances risk, security, and efficiency based on participant preferences.

A participant in Symbiotic who puts capital into the system does not leave the capital idle. Rather, the capital is deposited into vaults, smart contracts that manage delegation. Vaults eliminate much of the complexities associated with staking, allowing a participant to choose a strategy aligned with their risk appetite and look for returns.

Vaults will spread stakes across operators and networks based on predetermined rules. Some vaults are specific and offer more security but have lesser exposure to risk, whereas some vaults are more general and diversified that emphasize yield and efficiency. This creates a range of participants with varying preferences for returns or safety, or some combination of yields and safety.

Symbiotic creates four main vault classifications depending on whether they distribute across networks and/or operators. These vault classifications are commonly known as:

1. MN-MO (Multi-Network, Multi-Operator):
   These vaults distribute stake across multiple operator(s) and multiple networks (also known as “cross-network”).

   They provide the highest efficiency and strongest diversity, while minimizing reliance on any single actor and/or system.

   However, because these vaults may not be isolated from each other, and exits could happen in one network (or possibly operator), this dependence could degrade vault performance at some level.

   Best suited for participants who want broader exposure and the most efficiency.

2. MN-SO (Multi-Network, Single-Operator):
   For this vault type, participant stake distributes across multiple networks but with one operator.

   It provides some network-level diversification, while exhibiting operator-level loyalty and trust.

   Best suited for participants who have a strong-trust relationship with one specific operator, while still wanting to participate in multi-network environments.

3. SN-MO (Single-Network, Multi-Operator):
   These vaults are focused on only one network to concentrate stake across multiple operators.

   They allow high levels of network-level isolation, so risks are contained to a single network.

   At the same time, diversification across operators adds redundancy against operator-level failures.

   For participants that wish to focus on supporting one network, but want to hedge against operator risk.

4. SN-SO (Single-Network, Single-Operator):
   The most intense and concentrated vault, where the capital is delegated to one operator within a single network.

   Offers maximum isolation and focus while being the least efficient.

   Returns rely completely on the performance and honesty of one operator, in one network.

   Ideal for participants really concerned with security guarantees and simplicity over diversification.

These vaults depict the risk vs. return dichotomy inherent in staking.

Vaults that distribute the capital over many systems (MN-MO) are more efficient, yielding greater aggregate returns given the benefit of diversification. However, they don't isolate fully, and therefore, are exposed to risk across multiple systems.

Vaults that target a specific capital system (SN-SO or SN-MO), provide more isolation, protecting participants from systemic risks. The trade-off here is less efficiency and lower aggregate returns.

This modularity is one of the greatest strengths of Symbiotic. Participants can self-select their position in the spectrum of risk for potential rewards.

Symbiotic's system provides broader abilities than just staking; it also allows for restaking, which allows previously staked capital to be used again to secure an advanced network or operator. Restaking increases the usefulness of contributed capital because the same resources can provide security for multiple systems simultaneously.

This generates a network effect, wherein a network becomes more secure as additional stakers stake and restake, without having to require new inflows of capital. For stakers, this means their capital contribution can increasingly generate returns, as their contribution is deployed across multiple contexts. Vaults are the process that enables this, automatically redistributing restaked capital based on the selected strategies.

Participants are ultimately faced with a choice based on their own preferences:

Risk-averse participants are more likely to choose SN-SO or SN-MO vaults, which have exposure limited to a single network with more selective operator distribution.

Return-seeking participants will gravitate toward MN-MO vaults, where broader exposure to yield and efficiency is preferable.

There are also balanced strategies available that consist of actively mixing vault types or simply shifting back and forth over a long time scale.

By delivering these unique options, Symbiotic enables participants to intentionally orient their own staking strategy rather than being confined on a one-size-fits-all staking strategy.

Understanding (re)staking in Symbiotic effectively means getting an idea of how vaults serve as safe, modular containers that handle distributions of stake. There are four types of vault delegation: MN-MO, MN-SO, SN-MO, and SN-SO. The vaults' flexibility enables participants to decide if they want efficiency, diversification, isolation, or protection. The vaults allow you to stake and/restake. So, the capital can work even harder for you by securing multiple networks at the same time. This combination provides flexible participation with the necessary safety and allows participants to express their own risk-to-reward preferences while supporting the overall resiliency of the Symbiotic ecosystem.