As the crypto market rebounds and Bitcoin surpasses $62,000, many digital assets are regaining momentum. Notably, the Sol/ETH exchange rate has hit an all-time high, reigniting debates about whether Solana can truly become the “Ethereum killer.” While Ethereum’s restaking protocols have flourished over the past year, drawing massive institutional and retail interest, attention is now shifting to Solana’s ecosystem. With increasing capital inflow, Solayer, a standout restaking project on Solana, is emerging as a potential focal point for large-scale investments.
This article dives into Solayer—a highly anticipated restaking protocol recently backed by Binance Labs—and explores its technology, team, and potential impact on the future of Solana.
What Is Solayer?
Solayer is a pioneering restaking protocol built for the Solana blockchain. On July 2, it announced the successful completion of a builder-focused funding round, attracting high-profile investors such as Anatoly Yakovenko (co-founder of Solana Labs), Rooter (founder of Solend), Richard Wu (co-founder of Tensor), and Sandeep Nailwal (co-founder of Polygon). On August 7, it secured additional investment from Binance Labs, further validating its strategic importance.
He Yi, co-founder of Binance and head of Binance Labs, stated:
“Solayer has already begun to stand out within the Solana ecosystem. We’re excited to collaborate with them to further energize and expand the network.”
As of August 9, Solayer has attracted over 80,000 unique deposit addresses, with a total value locked (TVL) exceeding $160 million, making it the largest restaking protocol on the Solana network.
With this new funding, Solayer plans to:
- Expand its core team
- Introduce new protocols
- Establish itself as a foundational layer within Solana
- Develop solutions leveraging restaking infrastructure to address network congestion
Additionally, Solayer is preparing to launch its second-phase product, enabling users to stake SOL to secure both the Solana network and decentralized applications (dApps), while also improving network bandwidth and transaction throughput.
👉 Discover how restaking can amplify your crypto returns with next-gen infrastructure.
Core Founding Team
According to Rootdata, Solayer is led by two core founders:
- Rachel Chu: Co-founder of Solayer and CEO of Vibe. Previously served as a core developer at SushiSwap, bringing deep DeFi expertise.
- Jason Li: Co-founder of Solayer and MPCVault. Holds a Bachelor’s degree in Computer Science from UC Berkeley, contributing strong technical architecture knowledge.
Their combined experience in decentralized protocols and blockchain development positions Solayer at the forefront of innovation in the Solana ecosystem.
How Does Solayer Restaking Work?
Solayer enables users to restake their SOL or liquid staking tokens (LSTs)—such as mSOL, JitoSOL, and INF—to enhance the security and scalability of the Solana network. By doing so, users earn native staking rewards, MEV-boosted yields, and protocol incentives, similar to EigenLayer on Ethereum.
Users participate by delegating their staked assets to validators who support not only the base layer but also specialized application services known as Actively Validated Services (AVSs).
Analogy: Blockchain as a Highway
Think of the blockchain as a multi-lane highway:
- Left lanes = high-cost, premium security tiers
- Right lanes = lower-cost access for general applications
- Tolls = required stake or collateral
- Cars = decentralized applications (dApps) using network resources
In this model, Solayer acts as the traffic coordinator, managing toll collection (from restakers), directing traffic (dApps), and maintaining road integrity (validators). It allows dApps to create their own custom AVS and LST tokens, backed by native Solana staking yields plus additional MEV revenue.
This approach eliminates reliance on centralized providers or proprietary tokens, ensuring greater decentralization and trustlessness.
Key Innovation: Endogenous AVS vs. Exogenous AVS
One of Solayer’s defining features is its focus on endogenous AVS (intrinsic applications)—a concept tailored specifically for integrated blockchains like Solana.
| Concept | EigenLayer (Ethereum) | Solayer (Solana) |
|---|---|---|
| Blockchain Model | Modular (relies on L2s) | Integrated (all-in-one L1) |
| AVS Type | Exogenous AVS | Endogenous AVS |
| Examples | Oracles, rollups, data availability layers | DEXs, NFT marketplaces, meme coins |
While EigenLayer enables off-chain systems to borrow Ethereum’s security (exogenous), Solayer focuses on securing on-chain Solana-native applications (endogenous). This means dApps can reserve dedicated block space and processing priority directly through restaked SOL.
👉 See how next-generation AVS models are reshaping blockchain scalability.
This innovation addresses a critical pain point: as Solana grows, network congestion threatens user experience. By allowing dApps to pay for guaranteed performance via restaking, Solayer introduces a market-driven solution to resource allocation.
Restaking Progress: Epoch Evolution
Solayer Labs has rolled out a phased points-based incentive program to reward early adopters:
- Epoch 0 (Genesis Phase): Private, invite-only launch.
- Epoch 1: Launched May 27 with a $50M TVL cap. Over 9,000 addresses participated, reaching the cap by June 15. Users depositing more than 10 SOL received permanent referral codes and bonus points for completing tasks.
- Epochs 2 & 3: No TVL caps; open participation. SOL deposits earn higher points than other assets.
- Epoch 4 (Current): sSOL (staked SOL token) is now fully transferable and withdrawable. Users can integrate it into various DeFi strategies across partner platforms.
This structured rollout ensures fair distribution and long-term engagement.
How to Use Solayer for Restaking
Getting started with Solayer is simple:
- Connect your wallet – Compatible with Phantom, OKX Wallet, and others. Sign a confirmation message.
- Link social accounts – One-click verification; joining the Discord community is recommended for updates.
- Deposit eligible assets – Choose from SOL, mSOL, JitoSOL, or INF. Staking SOL currently offers up to 8.12% APY.
- Earn rewards & referrals – Deposit 10 SOL to receive an invitation link and unlock additional benefits.
The platform’s user-friendly interface lowers entry barriers for both newcomers and advanced users.
Challenges and Opportunities in Solana’s Restaking Landscape
Despite its rapid growth, restaking on Solana faces skepticism. Critics argue that unlike Ethereum—a modular chain dependent on Layer 2s—Solana’s integrated architecture reduces the need for external security layers.
Ryan Connor from Blockworks Research notes:
“Restaking makes sense in Ethereum’s fragmented ecosystem. For Solana, the value proposition must be proven.”
Key concerns include:
- Trust assumptions in complex delegation chains
- Potential for “nested staking risks” (a.k.a. “staking inception”)
- Smart contract vulnerabilities
- Centralization risks if too few validators dominate AVS operations
However, Solayer’s strong backing from Binance Labs and its growing TVL signal strong market confidence. Jason from Binance Labs emphasized:
“With our support, we’re one step closer to strengthening the Solana ecosystem and delivering real value to dApps.”
Moreover, Solana’s proven performance—handling over 65,000 TPS under optimal conditions—combined with persistent issues like outages and MEV exploitation, creates fertile ground for innovative solutions like Solayer.
If successful, Solayer could evolve into a decentralized cloud infrastructure layer, enabling scalable, high-performance dApps across finance, gaming, and social platforms.
👉 Explore how decentralized infrastructure is powering the next wave of Web3 innovation.
Frequently Asked Questions (FAQ)
Q1: What is restaking in crypto?
Restaking allows users to reuse their already-staked assets (like SOL or ETH) to secure additional services or applications beyond the base blockchain layer, earning extra yield while enhancing network security.
Q2: How does Solayer differ from EigenLayer?
While both enable restaking, EigenLayer focuses on exogenous systems outside Ethereum (e.g., oracles), whereas Solayer builds endogenous AVSs—native applications within Solana—offering tailored scalability and security for dApps.
Q3: Is Solayer safe to use?
Solayer leverages audited smart contracts and transparent governance. However, as with any DeFi protocol, users should conduct due diligence and avoid depositing more than they can afford to lose.
Q4: Can I withdraw my funds anytime?
Yes. Starting from Epoch 4, sSOL is fully transferable and redeemable. Users can unstake at any time without lock-up penalties.
Q5: What are endogenous AVSs?
Endogenous AVSs are applications built directly on the Solana blockchain—such as DEXs or NFT markets—that use restaked SOL to guarantee block space and transaction priority.
Q6: Does staking SOL on Solayer affect my voting rights?
No. Restaking through Solayer does not interfere with your validator voting rights or network participation rewards.
Final Thoughts
Solayer represents a bold step toward solving one of Solana’s most pressing challenges: scalability without sacrificing decentralization. By introducing endogenous restaking, it empowers dApps to secure dedicated resources while offering users enhanced yields.
With strong institutional support, a skilled team, and a growing user base, Solayer is well-positioned to become a cornerstone of the next phase of Solana’s evolution.
As the line between infrastructure and application blurs, protocols like Solayer may redefine how we think about blockchain performance—and who controls it.
Core Keywords:
Solana restaking, Solayer protocol, endogenous AVS, Binance Labs investment, dApp scalability, MEV rewards, liquid staking tokens