Utonic, an emerging restaking and liquid staking protocol built on The Open Network (TON) has received a $100 million institutional commitment in total value locked (TVL) ahead of its protocol launch.
The TON-based restaking protocol has received a $100 million commitment from firms including, TonStake, iZUMi Finance, InfStones, SatLayer, and StakeStone.
Utonic Co-Founder Speaks On Plans For The First Restaking Protocol On TON
🚀Here we go! $100M TVL Committed!https://t.co/WJ592BTOlj
The UTONIC protocol is set to launch by the end of September.
⏰Get ready to enjoy the Triple Yield of UTONIC:
💎Native yield from TON staking
💎Restaking yield from AVS
💎Farming yield from TON DeFi, L2s, and Dapps… pic.twitter.com/qlQbn3XzBm— UTONIC (@UTONIC_uTON) September 14, 2024
Lemon Lin, co-founder of Utonic spoke with CoinTelegraph, saying that the protocols aim is to contribute to TON’s security and decentralization. “The tech path of Restaking has been proven successful by EigenLayer & others on Ethereum, and can be perfectly practiced on TON to enhance security and the level of decentralization,” Lin said.
The success of EigenLayer, a restaking platform built on Ethereum has led to the explosion of the restaking sector. EigenLayer’s TVL surpassed $1 billion in December 2023.
Per DefiLlama, EigenLayer is the largest restaking protocol by TVL, with a current TVL of $11.018 billion. This figure is even more staggering when compared to the number two protocol, Symbiotic, having a much smaller TVL, with $1.52 billion.
The way in which restaking protocols such as EigenLayer and Utonic work is by enabling validators and stakers to re-stake wrapped/liquid staking derivative tokens like Lido Staked ETH in order to secure and validate other networks. These assets can also be deployed across decentralized finance (DeFi) platforms to earn additional yield.
RELATED: Restaking Protocol EigenLayer Announces Season 2 Of Its ‘Stakedrop’ – Are You Eligible?
Lin Claims That Utonic Could Maintain 20% Yield Even During Bear Market
The Utonic protocol expects to launch with a lucrative annual percentage yield (APY) of up to 30%. Cointelegraph asked Lin about a potential yield reduction during bear market conditions. He responded to say that he still expects an over 20% yield in such conditions.
“Native 3.65% APY + extra 5-15% APY coming from AVS, expecting farming incentives on L2s, the total can be over 30% APY. Even if it’s in a bear market where on-chain liquidity is draining, we still expect 20% APY”, Lin said.
The Utonic protocol enables TON restakers to earn yield from three different sources — native validator yield, Actively Validated Services (AVS) yield and also farming incentives.
Via the platform, users can stake TON tokens and reallocate the staked or wrapped token into additional applications, such as securing AVS, with users being rewarded with a passive yield on their holdings for doing so.
The current play is for Utonic to go live at the end of September, with hopes of becoming the EigenLayer on the TON chain.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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