TL;DR:
- Symbiotic launched Core V2, its official transition from restaking toward shared collateral markets in the DeFi space.
- The protocol’s vaults can be dynamically redirected to protocols like Aave and Morpho, delivering 70% greater capital efficiency.
- Nexus Mutual, Cap and Liquid Lane already operate on V2; Midas was the first issuer and Fasanara Capital serves as the initial curator.
Symbiotic, the protocol backed by Paradigm, formalized its transition toward collateral markets with the launch of Core V2. The upgrade turns the protocol into shared collateral infrastructure for multiple use cases in the DeFi market, including insurance, institutional credit and tokenized real-world assets.
Until now, each decentralized application had to sustain its own isolated capital. With V2, different protocols can access a common collateral base without sacrificing independence in their risk parameters. According to the official announcement, each vault maintains allocation limits, accepted collateral types and loss conditions defined separately, all executed on-chain.
— Symbiotic (@symbioticfi) July 1, 2026
Symbiotic: Capital that Never Sleeps
One of the most significant changes in V2 is the ability to keep capital productive when it is not in use. Funds committed in the vaults can be automatically redirected toward lending protocols such as Aave and Morpho to generate base yields. When obligations arise, the system reclaims the funds for execution. Symbiotic claims this model delivers 70% greater capital efficiency compared to traditional liquidity pools.
The first product built on Core V2 is Liquid Lane, introduced the previous month. It creates a shared capital layer for the instant liquidation of RWAs, allowing a single vault to serve redemptions across multiple tokenized assets while the underlying capital continues generating returns. Investors can exchange tokenized funds, private credit and other RWA assets for stablecoins almost instantly, avoiding redemption windows that sometimes stretch on for months.
Midas was the first issuer on Liquid Lane. Fasanara Capital, the institutional manager behind the tokenized credit fund mGLOBAL, served as the initial curator. Onchain asset manager KPK also joined as a Symbiotic vault curator.
Infrastructure to Scale DeFi
Nexus Mutual plans to use the platform to expand its DeFi insurance capacity, while Cap uses it to scale institutional credit guarantees. Hugh Karp, founder of Nexus Mutual, explained that shared collateral allows for first and second loss exposure to be defined separately, offering deeper and more executable coverage for larger markets.
Symbiotic closed a $29 million Series A in April 2025 led by Pantera, with participation from Coinbase Ventures and more than one hundred angel investors, including figures from Aave, Polygon and StarkWare. It had previously raised a seed round of $5.8 million co-led by Paradigm and cyber.Fund.
