What is Solayer?

Solayer is a restaking protocol built on the Solana blockchain, designed to optimize capital efficiency and enhance cross-chain liquidity by integrating multiple revenue streams such as Proof-of-Stake (PoS), Maximal Extractable Value (MEV), and Actively Validated Services (AVS). Its core architecture leverages hardware acceleration, dynamic scaling technology, and the secondary utilization of natively staked assets to establish a capital efficiency-oriented restaking network within the Solana ecosystem. Additionally, the project introduces infiniSVM, a hardware-accelerated solution utilizing FPGA and smart NIC technology to achieve over 160 billion TPS, significantly breaking existing blockchain performance barriers.

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Why is Solayer Needed?

The restaking sector in the Solana ecosystem faces dual challenges of revenue structure and liquidity efficiency:
Traditional staking models rely heavily on PoS base yields (6-8% annualized), failing to integrate high-value channels like MEV extraction and AVS validation services, resulting in inefficient utilization of billions in staked assets. Meanwhile, cross-chain liquidity fragmentation in modular blockchain ecosystems forces users to repeatedly stake assets across different chains to access diverse DeFi applications, reducing capital efficiency and accumulating systemic risks.
To address these issues, Solayer redefines value flows through a three-dimensional innovation framework:

• Smart Yield Aggregator: Dynamically allocates user-staked SOL or LP tokens across three yield layers—PoS node operations (5-8%), MEV arbitrage strategies (+3-5%), and AVS validation services (+2-4%)—boosting total annualized yields to 10-17%.
• Cross-Chain Liquidity Engine: Leveraging Solana’s 50,000 TPS high-performance settlement layer and Wormhole protocols, it creates a “restaked asset reuse matrix.” Native staked assets remain on Solana while generating synthetic assets like stLAYER for seamless integration into Ethereum, Berachain, and other DeFi ecosystems, enabling “single-stake, multi-chain leverage.”
• Dynamic Risk Hedging: A modified Black-Litterman algorithm optimizes staked asset portfolios in real-time, balancing risk-reward ratios during market volatility.

Restaking Mechanism

Solayer’s restaking architecture focuses on maximizing asset utility and enhancing Solana’s on-chain performance through three core components:

1. Restaking Pool Manager: Manages asset flows and converts them into Solayer-specific tokens (e.g., sSOL), ensuring efficient utilization within the ecosystem.
2. Delegation Manager: Distributes stakes to validators and Actively Validator Sets (AVS), maintaining network security and balanced staking.
3. Staking Pool: Optimizes returns via MEV-boosted strategies while selecting validators.

Core Workflow:

1. Asset Consolidation: Users deposit SOL or Liquid Staking Tokens (LSTs, e.g., sSOL) into Solayer’s restaking pool. The pool manager distributes assets across revenue streams, generating sSOL (representing staked rights) as proof for restaking, delegation, or liquidity provisioning. PoS rewards, MEV, and AVS earnings are auto-compounded via smart contracts.

2. Delegated Consensus: Assets are delegated to operator nodes via the Delegation Manager. These nodes perform validation tasks (e.g., cross-chain bridges, oracles) and return profits to stakers. Solayer’s Stake-Weighted QoS (swQoS) incentivizes validators with higher stakes to improve transaction success rates.

3. AVS Integration Layer: Expands staking utility through two AVS types:

   • Exogenous AVS: Off-chain or cross-chain services (e.g., shared sequencers, oracles) that share Solana’s PoS security.
   • Endogenous AVS: Solana-native DApp-focused services that allocate block space and transaction priority via staking weight, alleviating network congestion.

4. Flexible Unstaking & Risk Controls:

   • Custom unbonding periods (up to 2 days) for AVS.
   • Emergency withdrawals via smart contracts if AVS fails.

Endogenous AVS

Endogenous Actively Validator Sets (AVS) are critical to Solayer’s architecture, enhancing security and efficiency through decentralized, automated validator management. Unlike EigenLayer’s focus on Ethereum scaling, Solayer prioritizes Endogenous AVS tailored for Solana’s integrated blockchain:

• Decentralized Governance: No single entity controls validator sets.
• Automated Selection: Validators are chosen based on performance and reliability.
• Custom Unstaking: Flexible unbonding periods (≤2 days).
• Emergency Exits: Users can safely withdraw assets during AVS failures.

Funding Background

• August 28, 2024: Raised $12M in a seed round led by Polychain Capital, with participation from Big Brain Holdings, Hack VC, Nomad Capital, Race Capital, and ABCDE.
• July 2, 2024: Closed a pre-seed round (undisclosed amount) with angel investors including Solana co-founder Anatoly Yakovenko and Polygon co-founder Sandeep Nailwal.

Solayer Tokenomics

Token Utility

LAYER, the native token, initially serves governance purposes:

• Voting on protocol upgrades (e.g., supported assets).
• Key ecosystem initiatives (e.g., grants).

Future utilities include:

• Staking: Participate in PoS consensus for block rewards.
• Ecosystem: Validators securing Solayer earn $LAYER rewards.
• Gas Fees: Used for transaction fees on Solayer’s network.

Token Distribution

Max Supply: 1,000,000,000 LAYER
Initial Circulating Supply: 220,000,000 LAYER
Allocation based on the maximum supply：

• Community & Ecosystem: 51.23%
• Core Contributors: 17.11%
• Investors: 16.66%
• Foundation: 15.00%