Optimizing Restaking Yields: A Hybrid Quantitative & Qualitative Model

Key Highlights

‍

• Restaking protocols like Symbiotic and EigenLayer, along with the networks building on top of them, have introduced restaking rewards. This has led to the development of allocation strategies aimed at maximizing rewards while minimizing risk. However, benchmarking and monitoring the performance of these strategies remains challenging for restakers. Currently, there is no clear dashboard to track returns, largely because most rewards are distributed as points, particularly within the Symbiotic ecosystem, which are difficult to value given that Token Generation Events (TGE) have yet to be announced, and actual token distributions may remain months away.
  ‍
• This research focuses on Symbiotic Vault Curation, where capital allocation decisions, while sharing similarities with traditional portfolio allocation frameworks, are significantly more complex. Restaking involves navigating a rapidly evolving landscape with limited data and multiple dynamic variables. Points-based reward systems add another layer of complexity, as they are often loosely defined and lack transparent valuation mechanisms. Even when their structures are clearly outlined, they depend on multiple factors, such as vault restaking ratios, decentralization scores, and evolving protocol parameters, which makes developing robust quantitative models for optimal allocation particularly challenging.
  ‍
• We employ a hybrid framework to develop optimal allocation models, combining quantitative optimisation techniques with qualitative project evaluation. Given the nascency of the restaking ecosystem, risk curation shares many similarities with venture investing, where restakers are primarily compensated through "illiquid" tokens issued by emerging networks. Effective network selection becomes critical to overall returns, requiring a comprehensive assessment of competitive positioning, token valuation, potential reward streams, and underlying volatility. While slashing risk remains a key consideration, most networks have yet to implement these mechanisms at scale; we will address this aspect in future research.
  ‍
• Analysis of Symbiotic's five largest vaults reveals significant inefficiencies in their allocation strategies, highlighting potential for improved returns. Key differences emerge in allocation and restaking ratios. While 3× is optimal for maximizing Symbiotic points, the analyzed vaults range from 1.5× to 6×. Network allocations also show striking variations. Ditto and Human Network are heavily oversubscribed, attracting six times their Symbiotic target stake, while most other networks remain under-allocated. Such concentration is only justified if these networks ultimately deliver rewards that materially exceed the value of Symbiotic points, an assumption that requires careful research and analysis to validate.
  ‍
• As of the end of May, based on publicly available information, only two networks (Ditto Network and Mev-commit) offered additional rewards beyond Symbiotic points. After conservatively valuing these rewards, our allocation model estimates a 1.5% higher yield, reaching over 5% total, compared to the 3–3.5% yield from existing vault allocations. The portfolio's yield is diversified between Symbiotic at 60% and Ditto Network and Mev-commit at 40%. However, Symbiotic's share is likely to decrease as additional networks begin offering external rewards. These return estimates remain subjective and may evolve with protocol developments and market dynamics, with final outcomes only crystallizing at TGE.

‍

‍

‍

Introduction

‍

The emergence of restaking protocols such as Symbiotic has introduced a new paradigm in on-chain capital allocation. Through network-based restaking rewards, these platforms enable users to delegate assets into curated vaults in pursuit of higher returns. However, as the ecosystem evolves, a major challenge has surfaced: restakers are operating in a data-poor, opaque environment with limited tools to assess and optimize their strategies. Most rewards are denominated in points, rather than liquid tokens, with no fixed conversion or timeline to realization, as Token Generation Events (TGEs) remain unannounced. As a result, restakers are often left allocating into vaults without a clear understanding of expected returns.

‍

While existing research on restaking risk and network security has been valuable, it stops short of offering practical yield-driven vault selection. The unique structure of point-based reward systems, often governed by multi-variable mechanisms such as restaking ratios and decentralization scores, makes the modelling and benchmarking of returns inherently complex. Moreover, the absence of transparent dashboards or unified metrics has led to widespread inefficiencies, with many vaults drawing disproportionate capital despite offering limited additional value. The findings suggest that without rigorous valuation and allocation frameworks, restakers risk missing out on significant upside or becoming overexposed to underperforming vaults.

‍

This report addresses these gaps by estimating network yields to build optimal asset allocation in Symbiotic’s vault ecosystem. We present a hybrid methodology that blends quantitative optimization with qualitative project analysis. Our research assesses the economic potential of networks offering external rewards, evaluates the unique risks of illiquid incentives, and shows how a conservatively valued, rebalanced portfolio can enhance the overall risk-return profile.

‍

‍

‍

Symbiotic Overview

‍

Symbiotic is a restaking protocol, competing with EigenLayer, launched on the Ethereum mainnet in January 2025. It offers a permissionless and modular framework for decentralized networks to build customized staking and restaking systems. It allows network builders to define its security parameters, including collateral types, slashing conditions, and operator sets without relying on centralized approval. Symbiotic’s core contracts are immutable, reducing governance risks and ensuring long-term predictability for integrated networks. The protocol is also collateral-agnostic, supporting a broad range of crypto assets including ETH, liquid staking tokens (LSTs), and stablecoins to enable scalable and flexible economic security.

‍

‍

‍

The Symbiotic Vault System

‍

Vaults are a central component in Symbiotic's architecture. These are smart contracts designed to coordinate economic security by managing the relationships between:

‍

1. Stakers (i.e capital providers)
2. Node operators (i.e infrastructure providers)
3. Networks (i.e security consumers).

‍

Functions and Purpose of Vaults:

‍

• Capital Aggregation and Access: Vaults are intended to allow network builders to access pooled economic security. Conversely, they allow stakers to deploy their capital, potentially across multiple networks, via a single deposit point.
• Delegation and Stake Management: Vaults act as the layer for delegation and staking management. Operators can register with vaults to offer their services, and networks connect to these vaults to source security, often after explicitly opting into a vault's configuration.

‍

The vault design in Symbiotic introduces a sophisticated actor, known as the vault curator, who enables  customizable and rule-based management of restaking strategies. This modular approach allows curators to define critical parameters such as deposit conditions, slashing logic, and reward distribution, thereby directly influencing the vault's risk-reward dynamics. As the ecosystem evolves, curators will play an increasingly important role in making informed decisions about restaking allocations towards networks and operators.

‍

‍

Considerations for Vault Curation Strategies in Restaking

‍

Effective vault curation strategies in Symbiotic focus on several key areas. These include careful asset and network selection, which involves choosing diverse collateral types and balancing the risks of secured networks against their potential rewards (such as "points" or defined stake limits). Making informed operator and delegation choices is also important, requiring the vetting of reliable operators and the use of appropriate stake delegation methods to manage risk.

‍

Curators also define operational and risk parameters through the specific setup of:

‍

• Delegation logic for stake allocation.
• Burner module specifics for handling slashed assets.

‍

It is worth noting that on Symbiotic the slashing logic is implemented by the network in the network middleware.

‍

‍

‍

The State of Slashing

‍

Symbiotic shipped its full slashing framework in January 2025. The Slasher module in Symbiotic is an optional component of the Vault architecture, designed to enforce slashing penalties. Rather than executing slashes directly, it serves as a processing layer that acts on slashing requests initiated by network middlewares.

‍

Networks must integrate their middleware with these modules to enable penalty enforcement. As of the end of May, MEV-commit is one of the few networks that have implemented slashing capabilities. However, no slashing penalties have been recorded on-chain yet. Given that both the networks and restaking technology are still in their early stages, we anticipate that other networks will adopt slashing mechanisms in the future. For now, we consider the slashing risks to be minimal and plan to incorporate them into our modeling in future research.

‍

‍

‍

The Symbiotic Season 2 Points System

‍

Symbiotic points make up a significant portion of restaking yields, particularly as the restaking ecosystem remains in its early stages of development. Symbiotic launched Season 2 with its mainnet deployment in January 2025. While points earned during this season are expected to convert into native Symbiotic tokens at a future token generation event (TGE), Symbiotic has not yet made any official announcements about a token or TGE timing.

‍

Symbiotic's points system is designed to reward secure and balanced staking. Points allocated directly to vaults are determined by the vault's share of the network's total stake and are further adjusted by its "restaking score". But once the target is reached, the rewards rate (called "mining rate") drops, meaning extra stake earns fewer or no points. This prevents overstaking and encourages capital to flow where it's most needed.

‍

In addition to the mining rate, rewards are also adjusted by a security rate, which reflects how safely stake is distributed. Two key factors influence this:

‍

1. Restaking Score: This shows how heavily a vault's capital is being reused across networks. While restaking makes capital more efficient, overdoing it increases risk. If a vault exceeds a certain threshold (currently 3×), its score drops, reducing the points it can earn. The restaking score plays a crucial role by impacting both networks and vaults. When vaults exceed their restaking ratio limit, they incur a penalty. Additionally, a network's reward emission depends on the stake-weighted average restaking score of its participating vaults.

‍

‍

2. Decentralization Score: This measures how evenly a network spreads its stake across different vaults, based on HHI (Herfindahl–Hirschman index). If all stake is concentrated in one vault, the score is low. A well-diversified network earns a higher score and more points by reducing reliance on any single vault. Points are allocated per network, with 5% distributed to the network, 5% going to network operators, and the remaining 90% distributed among vaults that have opted in based on their stake. Vault curators can set an admin fee of up to 5%, with the rest of the rewards shared proportionally among stakers.

‍

‍

‍

Rewards Valuation & Vault Optimization

‍

The Symbiotic ecosystem offers a multi-layered reward structure where participants can earn not only Symbiotic Points but also distinct points from individual networks that build on Symbiotic. This creates opportunities for enhanced yield but also introduces significant complexities in accurately valuing these rewards.

‍

This section addresses those challenges, especially given that many of the networks are still in early stages, token generation events (TGEs) timelines are uncertain, and point systems are often not yet clearly defined. As a result, valuing these rewards requires assumptions and careful judgment.

‍

As of May 2025, most networks have not yet introduced explicit reward systems for restakers. Therefore, our modelling focuses on the few networks that do provide clear incentives, while conservatively assuming that others are not offering additional rewards beyond Symbiotic Points.

‍

Importantly, evaluating these networks requires a due diligence process similar to early-stage venture investing. Many networks are still developing their products, there is significant uncertainty around when (or if) rewards would be distributed, and success depends heavily on the team’s ability to launch, attract demand, and generate sustainable revenue. This makes allocation decisions less about short-term yield and more about long-term confidence in a network’s potential.

‍

We outline the valuation framework we use, followed by how Symbiotic Points and points from specific networks like Ditto and MEV-commit are treated within this model.

‍

Difficulties in Valuing Layered Rewards and Extra Yield

‍

Valuing points within the Symbiotic ecosystem, including both Symbiotic's own points and those from partner networks, is challenging due to several inherent uncertainties:

‍

1. Limited Pre-Market Data for Points:

• Symbiotic Points: Currently, there are no high-volume pre-market trading venues for Symbiotic points. While a market has existed on Gate.io since November 2024, the total volume ($12.3k on Gate.io Premarket Trading) is too low to provide a reliable price discovery mechanism.
• Network-Specific Points: Similarly, points from individual networks building on Symbiotic lack liquid pre-TGE (Token Generation Event) markets, as these projects are in early development stages and focused on product development rather than launching the native token, making direct market valuation impossible.
  ‍

2. Uncertainty in Program Durations and TGE Dates:

• Many points programs, including Symbiotic’s and those of its partner networks, do not have confirmed end dates or TGE timelines. Program duration significantly impacts point valuation. Longer programs can dilute the value of each point unless matched by proportionate token supply or demand at TGE. Similarly, the further out the TGE is, the greater the uncertainty, both in terms of project execution and broader market conditions, so the expected value of those points must be discounted more heavily.
• At the same time, longer durations also extend the potential period for earning and compounding rewards, possibly improving upside if the network gains traction. However, much can change between now and a future TGE: market sentiment can shift, narratives can fade or accelerate, and project timelines can slip. All of these dynamics must be factored into a realistic valuation. This creates valuation challenges, as we must rely on assumptions.
  ‍

3. Tokenomics Assumptions:

• The percentage of a network’s total token supply that will be allocated to points holders, often via an airdrop, is one of the most critical and uncertain assumptions in reward valuation. We use a 5% distribution as a baseline, in line with industry averages observed across restaking and DeFi ecosystems. However, this figure can vary widely depending on the project’s design, community goals, and funding stage.
• Historical data shows significant variance in airdrop allocations. For instance, Hyperliquid allocated nearly 30% of its token supply to its genesis airdrop, far above the average. Such outliers have a massive impact on realized rewards and demonstrate how sensitive point valuations are to this single assumption.
  ‍

4. Valuing Pre-TGE Network Tokens:

• To value network-specific points, we must estimate the future value of their native tokens at TGE by analyzing comparable publicly traded protocols and adjusting those valuations. For example, while MEV-commit shares preconfirmation features with Taiko and Puffer, the three protocols' products have key differences. A network's performance metrics, such as user count, total value locked, and transaction volume, determine whether to apply premiums or discounts to comparable valuations. However, since these networks are still in early development stages, crucial network data is often unavailable or hard to access due to limited tools and explorers, adding another layer of complexity to the analysis.

‍

We examine Ditto Network and MEV Commit because they’re the only networks on Symbiotic with clear on-chain incentive points: Ditto has a defined points-to-token roadmap and MEV Commit provides both a rewards framework for points distribution and slashing enforcement. Other networks lack one or both of these transparent economic models and are therefore excluded.

‍

‍

Technical Due Diligence and Valuation

‍

This section outlines the analytical framework used to estimate the potential worth of restaking rewards, combining both quantitative metrics and qualitative insights. These estimates are intended to guide optimal allocation decisions across restaking opportunities. The analysis begins with an assessment of Symbiotic points, followed by evaluations of network incentives offered by Ditto Network and MEV-commit. While the full analysis is extensive, the following provides a concise summary of the methodology and key assumptions underpinning the derived figures.

‍

‍

Symbiotic

‍

To estimate the potential value of Symbiotic Points, we first project Symbiotic’s FDV based on its current total value locked (TVL). This is achieved by analyzing the FDV/TVL ratios of comparable restaking protocols with liquid tokens. Among these, EigenLayer and Babylon are the most relevant benchmarks. EigenLayer, operating within the Ethereum ecosystem and utilizing Ethereum-native assets as collateral, offers a closer structural resemblance to Symbiotic compared to Babylon, which is built on Bitcoin and leverages BTC as its restaking asset. Given this, we assign an 80% weight to EigenLayer and a 20% weight to Babylon in our valuation model.

‍

We focus on FDV/TVL ratios near TGE dates, weighting these more heavily since TVL typically decreases after TGE as speculative capital exits. Based on an estimated TGE at the end of September 2025 and a 5% allocation of total supply to restakers, we calculated a per Symbiotic Point valuation of $0.005375.

‍

‍

Ditto Network

‍

Ditto Network is designed to enable trustless, secure, and scalable automation of complex workflows and event-driven processes (e.g., DCA, stop-losses, bridging) across blockchain ecosystems, particularly EVM-compatible chains, with economic security provided by operators and restaking integrations.

‍

Overview

‍

Ditto Network has been live on Symbiotic mainnet since February 2025 and currently executes on EVM-compatible chains, including Ethereum, Base, TON App Chain, and Arbitrum. It added BNB Chain support through its April 2025 integration with Kernel's restaking layer. Ditto uses an abstraction layer for user accounts, enhancing privacy and security. The architecture is chain-agnostic and is compatible with EIP-7702, Ethereum's latest account abstraction EIP. Building on top of Symbiotic's shared-security layer allows Ditto Network to utilize the same validator set on multiple blockchains.

‍

Workflows and transactions are processed by randomly selected committees of validators using a RANDAO-based verifiable randomness mechanism. This randomization reduces predictability and attack risks. Automated task execution requires validation and signing by a majority of committee members, ensuring robustness even in the presence of malicious nodes.

‍

Ditto automates DeFi operations through real-time monitoring and execution, including emergency flash loan repayments, liquidation protection for collateralized loans, and automatic AMM rebalancing when pools move outside optimal fee zones. The platform monitors multiple DEXs for arbitrage opportunities and triggers cross-chain swaps for better yields. Ditto features built-in MEV protection through commit-reveal schemes and private mempool techniques. Core products include an Account Abstraction SDK with unified gas tanks across EVM chains, personal automation tools for DCA/scheduled transfers, paymaster functionality for dApps, and AutomationKit for AI agents to trigger on-chain actions.

‍

Key Network Updates

‍

Ditto Network attracted significant economic security, with over $330M in restaked capital. Ditto's contracts already include Symbiotic's slashing hooks, yet the protocol has left the feature disabled; InceptionLRT notes penalties will only be activated after Ditto ships its zk-proof dispute court, such that no collateral can be slashed today.

‍

Ditto Network has formed a strategic partnership with Kernel, a leading restaking protocol on the BNB Chain with over $550M in TVL, to unlock trustless, cross-chain automation secured by robust economic guarantees. This collaboration significantly enhances Ditto's automation capabilities by leveraging Kernel's decentralized shared security infrastructure.

‍

Symbiotic Statistics

‍

‍

‍

‍

To gauge Ditto Network’s position, we compared it with other top Symbiotic vaults that have at least 13 operators including CapX Cloud, Human Network, and Radius. On average, the top seven operators in these networks control approximately 93.4% of the total stake. Ditto’s distribution aligns with this benchmark, though significant concentration persists; as these networks mature, we expect broader operator participation and a more balanced stake allocation.

‍

We calculate Ditto Network’s restaking score and decentralization score as explained in the Symbiotic Points Season 2 section.

‍

‍

Ditto Network's restaking score of 0.42 indicates that leveraged vaults reduce its point-earning efficiency to 42% of the maximum potential. This reflects the network's stake-to-TVL ratio deviating from the optimal ≤3× target.

‍

The decentralization score of 0.812 demonstrates broad stake distribution across vaults, though concentration risk remains due to several large vaults holding significant shares.

‍

Competitor Analysis

‍

• Gelato: Gelato is a decentralized automation protocol that enables developers to automate smart contract executions on Ethereum and other EVM chains. It uses keepers to trigger transactions based on conditions like time or price. It is one of the most established DeFi automation platforms, widely used for task execution.
• Chainlink Automation: Chainlink Automation (formerly Keepers) enables trustless smart contract automation using Chainlink's decentralized oracle network (DON) that monitors conditions off-chain and triggers on-chain functions when met. The tool leverages Chainlink's established reputation and extensive integrations across the cryptocurrency ecosystem.

‍

Valuation Framework

‍

Ditto Network’s valuation was primarily benchmarked against Gelato, which serves as the closest comparable in terms of product offering. While Chainlink Automation is thematically relevant, it represents only a small fraction of Chainlink’s broader suite, making it challenging to isolate a standalone valuation within LINK’s overall market capitalization. Due to the lack of publicly available usage metrics for Ditto Network, Gelato’s historical fully diluted valuation (FDV) was used as the primary reference. Adjustments in the form of premiums or discounts were then applied, reflecting Ditto’s relative strengths, positioning, and traction within the automation ecosystem.

‍

‍

Gelato, having launched in 2020, is an established product with integrations with major projects like Aave and Sky. While Ditto Network is a newcomer facing strong competition, it has secured a notable partnership with Kernel DAO, which manages over $2B in TVL across its three products—Kernel, Kelp, and Gain. Due to Ditto's more limited integration footprint, we apply a discount to compute its valuation.

‍

The valuation framework assumes that 5% of the total token supply will be distributed to Symbiotic restakers at the TGE, which is assumed to take place in 2026.

‍

Reward System

‍

The Ditto Network rewards program is based on the amount of collateral staked and the share of a vault’s total stake that is specifically delegated to Ditto Network, referred to as the vault multiplier. Rewards are distributed hourly to stakers according to the following formula:

‍

‍

Final Thoughts

‍

Ditto Network occupies a niche in DeFi automation by leveraging restaking-based economic guarantees, distinguishing itself from keeper networks that rely on native token staking. Its randomized committee design with slashing penalties could make it competitive with Gelato and Chainlink Automation, though this remains unproven at scale with limited adoption metrics and inactive slashing mechanisms.

‍

Encouragingly, Ditto is expanding its developer ecosystem through Kernel integration and AI agent-focused automation, alongside ongoing improvements to developer tools and personal automation UX (currently in beta). Timelines for these releases remain unspecified.

‍

‍

MEV-commit (by Primev)

‍

MEV-commit is a peer-to-peer preconfirmation protocol by Primev that enables Ethereum validators to earn additional yield by providing cryptographic guarantees for transaction inclusion. The system allows searchers and traders to pay fees for instant confirmation that their transactions will be included in upcoming blocks, backed by slashable stake from block builders and validators.

‍

Overview

‍

MEV-commit has been operating on the Ethereum mainnet since Q4 2024 and plans to expand to Hyperliquid L1 for high-frequency trading applications. The protocol operates on its sidechain with 200ms block times—approximately 60 blocks per Ethereum block—and integrates with multiple restaking platforms, including Symbiotic and EigenLayer.

‍

The protocol operates through an encrypted P2P network where bidders submit inclusion requests with fee offers, and providers respond with cryptographic commitments recorded on the MEV-commit chain. An oracle system monitors Ethereum blocks to verify commitment fulfillment, wherein successful commitments earn rewards, while failures trigger automated slashing of approximately 1 ETH from provider stakes. The system features zero-knowledge proof mechanisms to prevent griefing attacks and has maintained live slashing enforcement since early 2025.

‍

The platform offers preconfirmation services for instant transaction guarantees, a “points” program to incentivize validator adoption, encrypted mempool access for MEV strategies, and integration tools for staking providers. It supports multiple validator opt-in methods, including EigenLayer restaking, Symbiotic vaults, and direct staking mechanisms. Primev has demonstrated strong execution by establishing partnerships with leading Ethereum staking providers (Rocket Pool, Lido, Swell) and infrastructure partners (EigenLayer, Symbiotic, Obol Network).

‍

Key Network Updates

‍

MEV-commit was the first Symbiotic-secured network to activate live slashing. Each validator must post 1 ETH if they use the simple ‘vanilla’ staking route, but the requirement rises to have at least ≈3 ETH of slashable collateral per validator when they opt-in through Symbiotic or EigenLayer restaking. Providers that break a signed commitment lose the bid amount plus a 5% penalty, which is transferred to the affected bidder and the protocol treasury.

‍

The protocol deployed anti-griefing ZK proofs with 0.122ms generation time and launched Commit-Boost integration for standardized validator operations. Multiple MEV relays now support mev-commit with measurable yield increases for participating validators, as research demonstrates blocks containing preconfirmation bids generate significantly higher value than standard priority fee blocks.

‍

The network has settled over 2,750 preconfirmations since December 2024 while the total bid volume processed stands at 58.9 ETH. Engineering work continues extending preconfirmation capabilities beyond Ethereum L1 to high-throughput trading environments, with growing adoption among searchers, block builders, and transaction originators seeking execution guarantees.

‍

As of the end of May 2025, 7,813 validators have opted in, securing over 23,582 ETH of active collateral, and the protocol has recorded zero slashing events so far. MEV-commit’s EigenLayer AVS secures roughly 1.27M ETH from 43,000 stakers across 22 operators, while its Symbiotic vault holds about $151M in collateral across 11 operators.

‍

Symbiotic Statistics

‍

‍

‍

We assess MEV-commit’s Symbiotic vault health by calculating its restaking and decentralization scores, as outlined in the Symbiotic Points Season 2 section.

‍

‍

MEV-commit’s restaking score stands at 0.27, indicating that leveraged vaults reduce its point-earning efficiency to about 27% of the maximum possible and signal a substantial deviation from the optimal ≤3× stake-to-TVL target.

‍

The decentralization score of 0.711 indicates stake is spread across multiple vaults, lowering single-vault failure risk while still leaving some degree of concentration.

‍

Competitor Analysis

‍

• Taiko: Taiko is a Layer 2 network built as a Based Rollup that aims for full interoperability with Ethereum while decentralizing the sequencer role by allowing Ethereum validators to act as sequencers. This design aligns Taiko closely with Ethereum’s security and incentive mechanisms. To address the inherent latency and inefficiency in transaction finality typical of rollups, Taiko integrates a mechanism called Based Preconfirmation. This system enables users to receive early, cryptoeconomically backed guarantees that their transactions will be included and ordered in upcoming blocks before final confirmation on Layer 1. Currently, this preconfirmation feature is live on Taiko’s Holesky testnet.
• Puffer: Puffer's UniFi AVS has 3.12M ETH restaked and aims to deliver 100 ms preconfirmations through its integrated liquid restaking token and rollup stack for any rollup to adopt. Currently, Puffer's Unifi Based Rollup operates on testnet, with their liquid restaking solution forming a major part of their offering and TVL.

‍

Valuation Framework

‍

The valuation of MEV-commit is primarily anchored to Taiko, given the centrality of preconfirmations as a core offering in both protocols. Taiko’s FDV is used as the primary benchmark due to its relevance as a Layer-2 rollup with integrated preconfirmation capabilities.

‍

To tailor this benchmark to MEV-commit’s positioning, we apply a discount to account for the potential value attributed to Taiko as a rollup, while segregating the value attributed towards preconfirmations. From this adjusted base, we apply a further premium or discount based on MEV-commit’s own traction and performance indicators, including validator growth, number of blocks preconfirmed, and total value locked (TVL).

‍

‍

As a fully-fledged rollup with significant TVL, Taiko benefits from a broad user base, currently comprising approximately 2.5M unique addresses. The network has settled a cumulative transaction volume of $810M, with a 24-hour transaction count of 1.7M at the time of writing. This scale of activity substantially exceeds that of MEV-Commit, justifying a meaningful discount when benchmarking MEV-Commit’s valuation against Taiko’s. The discrepancy reflects the difference in network maturity, user engagement, and transactional throughput.

‍

The valuation framework assumes that 5% of the total token supply will be distributed to Symbiotic restakers at the TGE, which is assumed to take place in 2026.

‍

Reward System

‍

MEV-commit incentivizes Ethereum validator participation through a structured points program detailed in its documentation. The project launched three 6-month seasons beginning in February 2025. The system rewards validator opt-in and sustained participation across multiple seasons. Season 1 offers a maximum cumulative 10,000 points for validators who remain opted in for the full six months, with points distributed in increasing monthly tranches. For Seasons 2 and 3, point allocations will be doubled.

‍

When validators are selected to validate an ETH block, restakers receive additional income through preconfirmation bids. According to Dune, this extra reward currently averages 0.02 ETH per validated block, matching the median mev-boost payments shown on the dashboard.

‍

Final Thoughts

‍

Mev-commit is the first Symbiotic-secured network to implement live slashing, demonstrating operational maturity relative to other networks in the ecosystem. With zero slashing incidents across 11 months of testing and 7,813 validators securing 23,582 ETH in collateral, the protocol has so far proven its economic incentive mechanisms work in practice.

‍

The protocol's chain-agnostic architecture enables transaction references from any blockchain, with expansion plans focused on Hyperliquid L1 integration and multi-chain preconfirmation capabilities. Mev-commit generates both a base yield from preconfirmation bids and additional yield through its points program.

‍

MEV-commit's three-season points program suggests that a TGE might not be expected to occur before 2026. This extended timeline allows for significant network growth that could impact valuation metrics. Overall, MEV-commit presents a compelling restaking opportunity through its growing validator base, tangible yield, and upcoming Hyperliquid integration.

‍

‍

‍

Allocation Strategy

‍

After conducting valuations for both Symbiotic points and additional network rewards, we utilize these estimates to build a portfolio optimization model that maximizes restaking returns across various stake sizes. The optimally curated Symbiotic vault is assumed to employ stETH as collateral, thereby earning Ethereum's native staking yield in addition to restaking rewards. Restakers are assumed to receive 90% of total income, with the remaining 10% allocated to vault curators and operators.

‍

While the optimization of restaking returns shares similarities with traditional portfolio allocation models, it introduces several additional complexities. As previously discussed, Symbiotic point accrual depends on factors such as vault restaking ratios and the total amount of assets restaked into individual networks. Estimating network rewards is also challenging, as many protocols have yet to announce their TGE timelines, and reward structures are often not explicitly disclosed.

‍

Moreover, reward schemes are subject to change, adding further uncertainty for vault curators. Withdrawal periods impose additional constraints, requiring a minimum waiting period before reallocating assets across networks. Risk curation must also take slashing risk into account; however, data on this remains limited as many networks are either not fully operational or have only recently launched. Currently, several networks on Symbiotic have not yet enabled slashing, making any estimation of slashing and correlation risks largely theoretical.

‍

Given these uncertainties, this report does not incorporate slashing risk or diversification effects into the current optimization framework. These dimensions will be addressed in future research.

‍

‍

Optimizing the Number of Symbiotic Points

‍

In this section, we focus solely on Symbiotic rewards, aiming to identify the optimal allocation that maximizes the number of Symbiotic points earned. For this analysis, we have selected the networks with the highest target stakes as defined by Symbiotic, prioritizing those that are relatively more mature. As of the end of May 2025, this corresponds to a set of 13 networks.

‍

Optimal Yield versus Vault Size

‍

In this analysis, we assess the current capacity of our vault strategy. As more capital flows into restaking, the amount restaked will exceed the target stake for each network, causing yields to decline. We convert points to percentage income using our estimated rate of $0.005375 per Symbiotic Point.

‍

‍

‍

The optimal restaking ratio remains close to 3x since points allocation decreases above this threshold. An optimal asset allocation prioritizes networks that haven't reached their target stake limit, including Kalypso, Bolt, Hyperlane, and Cycle Network. Oversubscribed networks—such as Ditto Network, Capx Cloud, and Human Network—only become viable in our optimal portfolio when vault sizes exceed $100M.

‍

‍

Analysing Existing Vaults

‍

We compare the staking yield of the 5 largest vaults on Symbiotic. The restaking ratios among these vaults vary significantly, ranging from 1.47× to 6×. The vault 0x450a…C45b operates inefficiently with only a 1.47× restaking ratio — suboptimal given that Symbiotic allows restaking up to 3× vault size without penalty. While this vault achieves the highest staking yield from Symbiotic Points, it still falls short of the ~4% achieved with the target allocation computed earlier. The vault 0xa88e….D19F receives the lowest amount of Symbiotic points (estimated yield of 0.87%), primarily due to its high staking ratio (6×), which Symbiotic penalizes. This vault could earn more points by reducing its restaked amount.

‍

‍

The vaults show distinct differences in their network selection strategies. All vaults except 0x450a…C45b maintain large allocations to Human Network and Mev-commit. While Radius forms a major component in three of the five vaults, the other two have chosen to avoid this network entirely.

‍

‍

As shown, vault allocations differ considerably. When curators choose to allocate more to certain vaults than others, they make implicit bets on each network's potential rewards and TGE valuations. They also wager on how these rewards will stack up against Symbiotic points.

‍

‍

Integrating Non-Symbiotic Rewards

‍

As previously discussed, Symbiotic rewards are just one component of the total restaking yield. Our optimization must therefore consider the vault's overall rewards, not just those from Symbiotic.

‍

As of May, only Ditto and MEV-commit have established explicit and meaningful reward programs based on publicly available information. The other networks lack defined programs and offer no guaranteed rewards beyond Symbiotic points. Consequently, we have estimated reward distributions from these two networks while assuming no additional rewards from other networks. While this situation is temporary, we maintain a conservative approach and will adjust allocations as the ecosystem matures and more data becomes available.

‍

The estimated restaking yield is approximately 3% for most vaults, with the majority coming from Network Rewards. These vaults are well-diversified in terms of yield sources. The sole exception is vault 0x450a…C45b, which, as noted earlier, maintains a low restaking ratio of just 1.5×.

‍

‍

Based on our return assumptions, we increased the allocation to Ditto Network because of its higher potential yield (~2%) from expected future token distributions and its ability to handle larger restaking volumes. The optimal portfolio maintains a 3x restaking ratio since Symbiotic points continue to be a crucial yield source. This incentivizes restakers to remain close to this target ratio.

‍

As more networks begin distributing rewards in the future, increasing the restaking ratio above 3x might become more profitable, though this would also entail greater risk.

‍

‍

Our analysis shows a significant 2% higher potential yield compared to existing vaults. The optimal portfolio achieves effective diversification, with Symbiotic rewards comprising 60% of total returns.

‍

‍

‍

‍

Future Areas of Research

‍

As the restaking ecosystem matures, modelling each network's slashing risk will become crucial. The focus will shift from simply maximizing yield to optimizing risk-adjusted returns.

Network fees, once redistributed, will play a larger role in restaking yields. This makes understanding and modelling network activities vital. Risk curators can build more diversified portfolios by analyzing the key drivers behind each network's performance.

‍

We plan to develop methods for handling the variable nature of restaking returns. Since predicting token allocations and TGE values remains difficult, diversification across networks may be more prudent than concentration.

‍

Risk curators will need to efficiently rebalance vault allocations as market conditions change. These changes include shifts in reward schemes, fluctuations in restaked amounts, and evolving network dynamics, such as projects gaining traction and offering better rewards, as well as tokenomics updates. Much like traditional portfolio management, restaking allocations will need regular adjustment.