Solayer: Extending Solana's Security to Scale Decentralized Applications

TL;DR

• Solayer is a restaking network on Solana that allows users to secure additional decentralized applications and networks beyond the base blockchain.
• Users can restake SOL and other liquid staking tokens via the Solayer Protocol to earn sSOL rewards.
• Solayer offers developers tools to integrate restaking and tap into a shared security infrastructure.
• Solayer USD (sUSD) is a yield-bearing stablecoin backed by US Treasuries, expanding Solayer into new markets.

What is Solayer?

Solayer is a project building critical infrastructure to help scale decentralized applications on the Solana blockchain. Its core focus is enabling restaking - allowing users and applications to benefit from Solana's security beyond just the base consensus layer.

Through restaking, Solayer aims to enhance both the security and scalability of the Solana ecosystem. By extending Solana's economic security to additional execution layers and networks, it enables developers to build high-performance decentralized applications with the assurances of a robust, decentralized validator set.

How Solayer Works

At the heart of Solayer is the Solayer Protocol. The protocol allows holders of SOL and other liquid staking tokens (like mSOL or stSOL) to restake those assets and earn rewards in the form of sSOL, Solayer's native restaking token.

When users restake via the Solayer Protocol, they are contributing to a shared security pool that decentralized applications can tap into. Instead of each application needing to bootstrap its own validator set, they can instead rely on Solayer's shared validator network.

This model has several benefits:

1. Enhanced security through a large, decentralized validator set
2. Simplified process for application developers
3. Ability for stakers to earn rewards from multiple applications

Solayer provides a simple dashboard interface for users to manage their sSOL position, including deposits, withdrawals, and reward tracking. Staking rewards are earned in real-time and can be claimed at any point.

Solayer for Developers

In addition to the user-facing restaking pools, Solayer offers a suite of tools for developers to easily integrate restaking into their own Solana applications.

Some of the key infrastructure components Solayer provides include:

• Shared validator network - Applications can tap into Solayer's validator set for consensus and security needs
• Decentralized sequencer - Enables fair transaction ordering across applications
• Permissioned public mempools - Facilitates efficient and decentralized transaction propagation
• MEV strategies - Optimizes restaking rewards using maximal extractable value techniques
• Localized state support - Allows applications to manage their state locally while leveraging global security

By building on top of Solayer's infrastructure, developers can focus on their application logic while benefiting from a robust security and consensus layer. Solayer also enables deep integration with Solana's DeFi ecosystem, opening up possibilities for complex financial applications.

Solayer USD (sUSD)

In addition to the core restaking infrastructure, Solayer recently expanded into the stablecoin market with the launch of Solayer USD (sUSD).

sUSD is a yield-bearing stablecoin, meaning holders earn interest simply by holding the asset. It maintains a tight peg to the US Dollar and is fully backed by US Treasury Bills.

The stablecoin currently offers an attractive yield of 4-5% APY, paid out in sUSD. This positions it as an appealing cash-equivalent for Solana DeFi users looking to earn low-risk yield on their stablecoin holdings.

Under the hood, sUSD yield is generated through a combination of T-Bill yield and additional return from Solayer's restaking and MEV activities. This allows Solayer to offer a higher yield than traditional T-Bill backed stablecoins.

Solayer Team and Roadmap

Solayer was founded by a team with deep expertise in cryptography, distributed systems, and blockchain infrastructure. The project is advised by leading figures in the Solana ecosystem.

Since launching in 2024, Solayer has hit several key milestones including the launch of its mainnet protocol, sUSD stablecoin, and integrations with several major Solana DeFi applications.

Going forward, the Solayer roadmap is focused on expanding restaking integrations, building additional DeFi primitives like lending markets, and progressively decentralizing protocol governance. The ultimate vision is for Solayer to become a core part of the Solana infrastructure stack.

Conclusion

With its restaking network and yield-bearing stablecoin, Solayer is taking an innovative approach to scaling Solana both in terms of security and use cases. By providing a shared security layer and easy restaking tools, it empowers developers to build the next generation of high-performance decentralized applications on Solana.

As Solayer continues to integrate with more of the Solana ecosystem, it has the potential to become a key piece of the blockchain's infrastructure. For users, it offers an attractive way to earn staking rewards and low-risk yield.

If Solayer can deliver on its vision, it could help cement Solana's position as the leading platform for scalable, secure decentralized applications.