How Solayer Secured $20 Million in Just 45 Minutes
In May 2024, Solayer, a pioneering restaking protocol on the Solana blockchain, achieved a remarkable milestone: $20 million in deposits within just 45 minutes of launching its initial restaking phase. This rapid adoption reflects strong community trust and enthusiasm for Solayer’s mission—to revolutionize Solana’s ecosystem by maximizing the utility of staked assets.
Solayer’s success can be attributed to its innovative restaking model, high-performance infrastructure, and the ability to provide secure, flexible, and rewarding opportunities for users.
---
What is Solayer?
Solayer is a native Solana restaking protocol designed to enhance blockchain scalability, security, and efficiency. Its restaking mechanism allows users to redeploy staked SOL or liquid staking tokens (LSTs) to secure Actively Validated Services (AVSs)—Solana-native services such as oracles, bridges, and modular rollups.
Key Benefits:
Maximized Utility: Staked assets are actively deployed across the ecosystem to generate additional rewards.
Enhanced Security: Restaked assets support AVSs without requiring dApps to operate their own validators.
Liquidity Retention: Users maintain access to their assets while earning multiple revenue streams.
---
Mission and Value Proposition
Solayer’s mission is to create a scalable, secure, and interoperable Solana ecosystem where staked assets actively support a wide range of dApps while delivering diversified rewards. By enabling restaking, Solayer transforms staked SOL into a dynamic asset that secures both the network and native applications while generating enhanced returns.
---
Core Features
1. InfiniSVM: High-Speed Execution Engine
Solayer’s hardware-accelerated Solana Virtual Machine (SVM) leverages SDN and RDMA for exceptional performance:
Throughput: Up to 1 million TPS
Bandwidth: 100+ Gbps
Finality: Near-instantaneous (1 ms)
This architecture enables parallel transaction processing, making it ideal for DeFi, gaming, and AI-driven dApps.
2. sSOL: Liquid Restaking Token
sSOL represents staked SOL or LSTs and offers:
Liquidity: Usable in DeFi without unstaking
Rewards: Earn PoS rewards, MEV boosts, and AVS incentives simultaneously
Simplified Staking: Automated delegation eliminates the need to manage validators
3. sUSD: Yield-Bearing Stablecoin
APY: 4–5% through auto-rebasing
Utility: Can be restaked to secure AVSs
DeFi Integration: Serves as a cash-equivalent asset for retail and institutional users
4. Actively Validated Services (AVSs)
AVSs are Solana-native services requiring validation. Solayer’s restaking model secures these services, creating a trustless security marketplace:
Endogenous AVSs: Native Solana applications
Exogenous AVSs: External systems leveraging Solana security with controlled slashing
5. LAYER Token: Ecosystem Backbone
The native utility and governance token powers Solayer’s ecosystem:
Governance: Voting on upgrades and resource allocation
Incentives: Rewards for restaking and securing AVSs
Network Security: Validators and delegators use LAYER to support the Shared Validator Network (SVN)
Tokenomics:
Total Supply: 1B LAYER
Initial Circulating Supply: 220M (22%)
Community Allocation: 51.23%
Public Sale: ~3%
---
Why $20 Million Locked in 45 Minutes?
Several factors contributed to Solayer’s rapid adoption:
1. High Demand for Restaking: Users sought to maximize returns on staked assets, inspired by protocols like Ethereum’s EigenLayer.
2. Solana’s High Performance: Low fees and high throughput attract developers and users alike.
3. Liquidity and Flexibility: sSOL and sUSD enable DeFi participation without locking assets.
4. Strong Backing: Support from top-tier investors boosted market confidence.
5. Innovative Technology: InfiniSVM’s speed, combined with security audits and a user-friendly dashboard, drove adoption.
6. Community Engagement: Early hype and strong social momentum encouraged participation.
---
Technical Infrastructure
Restaking Pool Manager: Converts SOL/LST deposits into sSOL
Delegation Manager: Allocates sSOL to validators and AVSs
Reward Accounting Unit: Tracks and distributes rewards offline
The Shared Validator Network (SVN) enhances interoperability, reduces fragmentation, and improves network robustness.
---
Real-World Applications
DeFi: Secure decentralized exchanges and lending platforms
Gaming: Enable fast, secure in-game transactions
Enterprise: Deploy scalable blockchain solutions, such as supply chain tracking
Emerald Card: A future feature linking staking rewards to real-world spending.
---
Risks & Considerations
Smart contract vulnerabilities
Validator slashing
Liquidity fluctuations
Unstaking delays
Regulatory uncertainty
Users should perform due diligence and assess risk tolerance before participation.
---
Future Outlook
Solayer Chain: High-speed chain targeting 1M TPS with cross-chain support
Expanded DeFi Primitives: New lending markets and yield strategies
Decentralized Governance: Gradual transfer of decision-making to LAYER holders
Institutional Adoption: Partnerships with Solana dApps and enterprises
With $400M TVL as of January 2025 and strong partnerships like Sonic SVM, Solayer is positioned as a cornerstone of Solana’s ecosystem.
---
Conclusion
Solayer’s rapid $20 million lockup demonstrates the market’s confidence in its restaking innovation, high-speed InfiniSVM, and user-friendly features such as sSOL and sUSD. By transforming staked SOL into a dynamic asset, Solayer strengthens Solana’s scalability, security, and earning potential, paving the way for the next era of blockchain infrastructure.
