Solayer, a Solana Restaking Protocol, Raises $12 Million in Funding

Bittime – Solayer Labs, a startup behind the Solana-based restaking protocol Solayer, has raised $12 million in a funding round led by Polychain Capital and HackVC.

See the following more detailed explanation. We will also explain the concept of restaking and its impact on the Solana ecosystem.

What is Restaking?

Restaking is the practice of using tokens that have been staked to secure another proof-of-stake blockchain, thereby effectively reusing those tokens that have been staked. These additional applications are often referred to as "actively validated services" (AVS).

The concept of restaking was first introduced by EigenLayer, an Ethereum-based restaking protocol that is currently the second largest DeFi protocol based on total value locked (TVL). EigenLayer has a TVL of $11.8 billion at the time of writing this article.

Solayer plans to implement the “shared economic security” approach used by EigenLayer, but with specific adjustments for the Solana ecosystem.

Retaking is increasingly becoming a prominent feature in the crypto world. According to a report from Galaxy Digital, there was $20.14 billion in crypto assets restakes in June 2024, a sharp increase from the end of December 2023.

Among all blockchains, Ethereum has the largest number of crypto assets staked, with $58.5 million in Solana.

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Solayer Labs and Its Products

Solayer Labs was just founded in February 2024 and its flagship product launched on the Solana mainnet in May 2024.

The Solayer Network currently has a TVL of $190 million with 100 unique deposit addresses, according to DeFi Llama.

Fund Use Plan

The newly acquired funds will be used to develop the Solana restaking network, improve scalability and security across the ecosystem, and address the “spam and congestion” issues that occur on the Solana network.

In addition, Solayer will also soon release "endogenous AVS clients", general asset restaking, and "exogenous AVS" in the coming months.

Solayer Potential

Apart from Solayer, some other restaking solutions that have gained popularity include Karak, Symbiotic, Picasso, and Pell Network.

Solayer has great potential to make a positive contribution to the Solana ecosystem. Some of these potentials include:

- Security Improvements: By securing additional applications, Solayer can improve the overall security of the Solana ecosystem.
- Increased Efficiency: Solayer can help reduce congestion and increase transaction efficiency on the Solana network.
- Token Value Increase: If Solayer succeeds in increasing added value to the Solana ecosystem, then the value of the SOL token can also increase.
- New Innovation: Solayer can drive innovation in the field of DeFi and other blockchain technologies.

Impact on the Solana Ecosystem

The more applications staked through Solayer, the higher the liquidity in the Solana market. Solayer can attract more developers and users to build and deploy applications in the Solana ecosystem.

If Solayer succeeds in improving the security and efficiency of the Solana ecosystem, the value of the SOL token may increase.

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Conclusion

The funding obtained by Solayer shows the high interest of investors in the restaking protocol. With a focus on security and efficiency of the Solana ecosystem, Solayer has the potential to become a major player in this sector.

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