Solayer (LAYER)

Solayer is an advanced restaking protocol built natively on the Solana blockchain, designed to enhance network security and scalability by enabling users to restake their SOL tokens. This process allows decentralized applications (dApps) to secure block space and prioritize transaction inclusion, thereby improving overall network performance.

Key Milestones Achieved (as of January 2025)

• Successful onboarding of over 50 Actively Validated Services (AVSs).

• Over $400 million in SOL restaked through the Solayer protocol.

• Launch of the sUSD stablecoin, achieving adoption across major DeFi applications.

• Governance proposals voted on and implemented by the LAYER token holder community.

• Recognition as a leading restaking protocol in the Solana ecosystem.

An Overview of the Solayer Ecosystem

Solayer’s architecture | Source: Solayer docs

The Solayer ecosystem comprises two main components:

1. Restaking: This mechanism leverages the economic security of SOL tokens to secure additional systems beyond the primary blockchain. Users can restake their SOL or Liquid Staking Tokens (LSTs) to secure multiple Actively Validated Services (AVSs), maximizing the efficiency of staked assets.

2. Shared Validator Network (SVN): Solayer introduces a shared validator network that utilizes the principles of staking to enhance Solana's base layer security. This setup allows various protocols to tap into a shared economic security infrastructure, promoting interoperability and optimized resource allocation.

Solayer operates as a restaking protocol on the Solana blockchain, allowing users to enhance the security and efficiency of dApps by leveraging their staked SOL tokens. Here’s a breakdown of its core mechanism:

1. Restaking Mechanism: Users can restake their SOL tokens or Liquid Staking Tokens (LSTs) through Solayer's platform. This generates sSOL, a liquid utility token representing the restaked assets. sSOL can be delegated to secure Actively Validated Services (AVSs), which include both Solana-native dApps and external systems requiring decentralized security.

2. Actively Validated Services (AVSs): Solayer supports AVSs by allocating economic security from restaked tokens. These services may range from blockchain infrastructure components to decentralized financial applications. AVSs benefit from Solayer’s shared security model, reducing individual staking requirements while improving overall scalability.

3. Shared Validator Network (SVN): The Shared Validator Network enhances the scalability of the Solana blockchain by enabling validators to secure multiple systems simultaneously. This eliminates the need for redundant validators, promoting efficiency and decentralization across the ecosystem.

4. Stake-Weighted Quality of Service (swQoS): Solayer ensures that resources are allocated efficiently using its Stake-Weighted Quality of Service mechanism. This system prioritizes transactions and security allocation based on the amount of sSOL staked with specific AVSs, optimizing resource distribution.

5. sSOL and sUSD Tokens

• sSOL: A liquid staking token that acts as a shared liquidity interface, enabling users to allocate resources and earn rewards while maintaining flexibility.

• sUSD: A stablecoin linked to T-Bill yields, allowing users to earn passive income while contributing to Solana's security and performance.

6. Governance and Incentives: Solayer incorporates decentralized governance, allowing LAYER token holders to vote on key protocol decisions. Additionally, participants earn staking rewards proportional to their contribution, incentivizing long-term engagement.

By integrating these features, Solayer enhances the scalability, efficiency, and security of the Solana blockchain, making it a robust platform for supporting decentralized applications and services.

How Solayer’s sSOL works | Source: Solayer docs

• Restaking SOL Tokens: Users can restake their SOL or LSTs through the Solayer platform to receive sSOL, which can be delegated to AVSs. This process enhances network security and allows users to earn optimized validator yields and restaking incentives.

• Delegating sSOL: Users can delegate their sSOL towards preferred applications on Solana, contributing to the security and acceleration of these applications while earning rewards.

Getting started with Solayer is straightforward and involves a few simple steps to restake your SOL tokens, earn rewards, and support the Solana ecosystem. Here’s how you can use Solayer effectively:

Step 1: Connect Your Solana Wallet to Solayer

Visit the Solayer platform. Connect a compatible Solana wallet, such as Phantom or Solflare. Ensure your wallet is funded with SOL to cover restaking and transaction fees. You can buy Solana on KuCoin and fund your wallet. 

Step 2: Restake Your SOL Tokens

Navigate to the "Restake" section of the platform. Select the amount of SOL or Liquid Staking Tokens (LSTs) you wish to restake. 

Confirm the transaction to mint sSOL, a liquid staking token representing your restaked assets.

Step 3: Delegate sSOL to AVSs

Explore the available Actively Validated Services (AVSs) in the dashboard. Choose the AVSs you want to support based on their purpose, performance, or personal preference.

Delegate your sSOL to your selected AVS to enhance its security and earn rewards.

Step 4: Monitor and Manage Your Stake

Use the platform dashboard to track your staking rewards and performance metrics. You can reallocate your sSOL to different AVSs or withdraw it back into SOL anytime, providing flexibility.

Step 5: Participate in Governance

If you hold LAYER tokens, participate in Solayer's decentralized governance. Vote on key proposals and protocol upgrades to shape the future of the Solayer ecosystem.

Step 6: Earn Rewards

Rewards are distributed based on your restaking contribution, the performance of the AVSs you support, and the duration of your commitment.

Claim your rewards periodically or allow them to accumulate to compound your earnings.

How to Earn Higher Rewards by Restaking on Solayer

1. Strategic Restaking: Select high-performing AVSs to maximize your rewards while supporting impactful decentralized applications.

2. Long-Term Commitment: Extend your staking duration to benefit from multiplier effects on your rewards.

3. Stay Informed: Regularly check updates and announcements from Solayer to learn about new AVSs, features, and governance opportunities.

By following these steps, you can actively contribute to the security and scalability of the Solana blockchain while optimizing your earning potential with Solayer.

The Solayer Foundation has introduced the LAYER token, an SPL-2020 token that serves as the governance token for the restaking platform. LAYER enables holders to participate in decentralized governance, influencing key decisions and protocol developments within the Solayer ecosystem.

LAYER Token Utility

1. Governance: LAYER token holders can participate in decentralized governance by voting on key proposals, including protocol upgrades, resource allocation, and ecosystem developments. Governance ensures community-driven decision-making and long-term alignment among stakeholders.

2. Restaking Incentives: LAYER tokens are used to reward users who restake their SOL tokens or Liquid Staking Tokens (LSTs) to support Actively Validated Services (AVSs). These rewards incentivize participation and enhance the security and scalability of the network.

3. Network Security: Validators and delegators use LAYER tokens to secure the Solayer Shared Validator Network (SVN), ensuring transaction reliability and operational stability.

4. Transaction Fees: LAYER tokens are used to pay for transaction fees on the Solayer platform, particularly for actions involving restaking, AVS delegation, and token transfers.

5. sSOL and sUSD Ecosystem: The LAYER token facilitates liquidity and utility within the Solayer ecosystem, enabling smooth interactions between the sSOL staking token, sUSD stablecoin, and other decentralized applications.

Solayer Token Distribution

Solayer (LAYER) token allocation | Source: Solayer blog

The total supply is fixed at 1 billion tokens, allocated across various sectors to support the platform's growth and governance.

1. Community & Ecosystem (51.23%):

• Research and Development (34.23%): A significant portion is dedicated to ongoing research and development initiatives, developer programs, and overall ecosystem expansion. This allocation underscores Solayer's commitment to continuous innovation and the enhancement of its platform.

• Community Events and Incentives (14%): This segment is set aside to foster community engagement through events and incentives. Notably, 12% of the total supply is earmarked for the Genesis Drop, rewarding early adopters and participants who have been instrumental in bootstrapping the network.

• Emerald Card Community Sale (3%): Allocated for distribution via the Emerald Card community sale, this portion aims to broaden token accessibility and encourage wider participation within the community.

1. Core Contributors and Advisors (17.11%): 17.11% of the total supply is reserved to recognize and incentivize the efforts of core contributors and advisors, . This allocation ensures that individuals who play a pivotal role in the platform's development and strategic direction are adequately rewarded.

2. Investors (16.66%): A total of 16.66% of the $LAYER tokens have been allocated to investors. This distribution reflects the support and confidence of strategic partners and stakeholders who contribute to the project's financial backing and growth trajectory.

3. Solayer Foundation (15%): The Solayer Foundation is entrusted with 15% of the total token supply. This allocation is intended to support vertical product expansion and network development, ensuring that the platform can adapt, scale, and introduce new features in response to evolving technological landscapes and user needs.

LAYER Token Vesting Schedule

Solayer token release schedule | Source: Solayer blog

To ensure market stability and align with its long-term objectives, Solayer has established a detailed vesting schedule for the $LAYER token:

• Genesis Drop and Emerald Card Community Sale: Tokens allocated through these initiatives are fully unlocked at launch, providing immediate liquidity to participants.

• Community Incentives: Tokens designated for community incentives will vest linearly over a six-month period, promoting sustained engagement and participation within the ecosystem.

• Community & Ecosystem and Foundation Allocations: These allocations will vest every three months over a span of four years, ensuring a gradual and responsible release of tokens into the market.

• Team & Advisors: Tokens allocated to team members and advisors are subject to a one-year cliff, followed by linear vesting over three years. This structure aligns the interests of the team with the platform's long-term success.

• Investors: Investor allocations are also subject to a one-year cliff, with linear vesting over two years, balancing investor interests with the platform's developmental milestones. 

The Genesis Drop is an airdrop event distributing $LAYER tokens to early community members. Here’s how you can claim your $LAYER tokens after the Solayer airdrop:

1. Check Eligibility: Visit Solayer's claim portal and connect your wallet to verify eligibility.

2. Allocation Checker: An allocation checker became available on February 10, 2025, allowing users to see their specific token allocations.

3. Claim Tokens: Starting February 11, 2025, eligible users can claim their $LAYER tokens directly through the portal.

The claiming period is open for 30 days, and rewards are structured based on the amount and duration of users' staking activities.

Solayer’s roadmap outlines its strategic vision for enhancing the scalability, security, and efficiency of the Solana blockchain. By focusing on innovation and community-driven growth, Solayer aims to position itself as a pivotal protocol for restaking and decentralized application performance.

Phase 1: Launch and Ecosystem Initialization (0-6 Months)

Focus: Establishing the foundation for the Solayer ecosystem.

• Launch of Solayer's restaking protocol and sSOL token.

• Deployment of the Shared Validator Network (SVN) for improved security and resource allocation.

• Onboarding initial Actively Validated Services (AVSs), including native Solana dApps and partner protocols.

• Community engagement initiatives to educate users about restaking and sSOL delegation.

Phase 2: Ecosystem Growth and AI Integration (6-12 Months)

Focus: Expanding the utility of restaking and incentivizing data-driven applications.

• Introduction of sUSD, the yield-bearing stablecoin tied to restaking rewards.

• Integration of Solayer with decentralized AI agents and machine-learning dApps.

• Launch of developer grants to foster the creation of new AVSs.

• Governance activation for LAYER token holders to propose and vote on protocol updates.

Phase 3: Decentralized Governance and Protocol Optimization (12-18 Months)

Focus: Enhancing community control and optimizing network operations.

• Transition to fully decentralized governance, enabling LAYER token holders to influence emissions, validator incentives, and AVS priorities.

• Optimization of the Stake-Weighted Quality of Service (swQoS) mechanism for efficient resource allocation.

• Expansion of AVSs to include cross-chain integrations with other ecosystems.

• Release of advanced staking tools for users to maximize rewards and track performance.

Phase 4: Network Expansion and Sustainability (18-24 Months)

Focus: Scaling the Solayer network and ensuring long-term viability.

• Deployment of cross-chain restaking capabilities, allowing users to secure systems outside Solana.

• Enhanced interoperability with Solana-native dApps and external Layer-1 protocols.

• Gradual transition to a demand-driven reward model to reduce emissions and promote token scarcity.

• Implementation of InfiniSVM, a hardware-accelerated blockchain solution for 100 Gbps speeds and multi-cluster architecture.

Phase 5: Ecosystem Maturity (24+ Months)

Focus: Establishing Solayer as a key infrastructure layer in the Solana and Web3 ecosystems.

• Full integration of Accounts Lattice Hash Proposal for exponential user growth without compromising network performance.

• Expansion of the Solayer ecosystem to include institutional adoption and partnerships.

• Continuous updates to governance, staking, and AVS frameworks to align with community needs and technological advancements.

• Sustained focus on deflationary tokenomics to promote LAYER token value and incentivize long-term holding.

Solayer represents a significant advancement in enhancing Solana's network security and scalability through its innovative restaking protocol and shared validator network. By enabling users to restake their SOL tokens and participate in decentralized governance, Solayer fosters a more secure, efficient, and scalable ecosystem for decentralized applications on Solana.

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