Key Takeaways
Solayer is a restaking protocol on Solana that allows staked SOL to remain productive across the network rather than sitting idle.
It uses liquid staking to give users sSOL tokens, which represent their staked SOL and can be used within the Solana ecosystem.
Solayer's infrastructure includes a Restaking Pool Manager, Delegation Manager, Reward Accounting Unit, and oracle price feeds that work together to manage staking securely.
The ecosystem uses multiple tokens: LAYER (governance and utility), sSOL (liquid staking), AVS tokens (DApp-specific yield access), and sUSD (a stablecoin for transactions and liquidity).
Introduction
Solayer (LAYER) is a restaking protocol built on top of Solana. Its primary goal is to make staked SOL more useful. Rather than locking tokens away while they secure the network, Solayer lets users keep their SOL active across decentralized applications (DApps) and liquidity-generating strategies at the same time.
This is possible through staking and restaking mechanisms combined with liquid tokens that represent your position. The result is a more efficient use of staked capital within the Solana ecosystem.
What Is Solayer (LAYER)?
Solayer is a Layer-2 protocol on Solana focused on restaking. When you stake SOL through Solayer, you receive sSOL tokens in return. These represent your staked position and can be used across the ecosystem while your underlying SOL continues earning rewards.
The platform positions itself as "InfraFi," infrastructure designed to improve how capital flows through the Solana ecosystem. Rather than competing with DApps or trading platforms, Solayer focuses on the underlying layer that supports them.
The LAYER token serves governance and utility functions within the protocol, while AVS (Actively Validated Service) tokens are created by individual DApps to access yield and MEV (Maximum Extractable Value) opportunities within Solayer.
How Solayer Works
Solayer combines several components that work together to manage restaking efficiently. Here is what each one does:
Layer 2 and restaking
Solayer operates as a Layer 2 solution on Solana. It handles the restaking process separately from the main chain, reducing congestion and improving efficiency. Think of it as a specialized layer that manages SOL token distribution across different staking opportunities, leaving the main Solana chain less burdened.
Restaking Pool Manager
The Restaking Pool Manager is the central smart contract of the system. It receives SOL from stakers, creates and distributes sSOL tokens in return, deploys pooled SOL across staking opportunities, and distributes earned rewards. All the core logistics of the staking process run through this component.
Liquid staking tokens
sSOL is a liquid staking token (LST). It represents your staked SOL as a separate, tradeable token. Because you hold sSOL instead of locked SOL, you can use your position within the Solana ecosystem without waiting for the unstaking period to end. You continue earning staking rewards on your underlying SOL at the same time.
Delegation Manager
The Delegation Manager determines where the pooled SOL is actually deployed. It interacts with a range of validators and assigns staked SOL to them in a way that optimizes security and efficiency. While the Restaking Pool Manager handles the mechanics of pooling and distribution, the Delegation Manager handles the decisions about where stakes go.
Reward Accounting Unit
The Reward Accounting Unit tracks rewards earned by the SOL pool and ensures they are distributed fairly among sSOL holders, proportional to their share. It does not directly handle staking; it works like an accountant, calculating each holder's entitlement and feeding that data to the Restaking Pool Manager.
Oracle price feed
Solayer uses oracle price feeds to maintain the peg between sSOL and SOL. The target is that one sSOL should equal approximately one SOL plus accumulated rewards. Oracles are external services that provide blockchains with real-world price data, and they play an important role in keeping this exchange rate accurate.
Solayer Tokenomics
Solayer uses a multi-token model, with each token serving a specific role:
SOL: The native Solana token used for staking, governance, and as the base currency in Solayer.
LAYER: The primary utility and governance token. Used for staking, voting on protocol decisions, and incentivizing participants.
sSOL: A liquid staking token representing staked SOL. Lets users access DApps and earn yield without unstaking.
AVS Tokens: Tokens created by DApps on Solayer to offer their users access to SOL yield and MEV opportunities.
sUSD: A stablecoin pegged to the US dollar, used for transactions, staking, and liquidity provision within the ecosystem.
LAYER on the Binance HODLer Airdrop
Solayer (LAYER) was featured as the eighth project in Binance’s HODLer Airdrops program. This program rewards BNB holders with token airdrops based on historical snapshots of their balances. Users who subscribed to Binance's Simple Earn products during the designated eligibility periods qualified for LAYER rewards. A total of 30,000,000 LAYER tokens, representing 3% of the total supply, were allocated for this crypto airdrop.
After the airdrop, LAYER was listed on Binance with the Seed Tag applied.
FAQ
What is Solayer used for?
Solayer is used to make staked SOL more productive. Instead of locking tokens away while they secure the Solana network, Solayer lets you receive sSOL in return, which can be used in DApps and other services while your SOL continues earning staking rewards.
What is sSOL?
sSOL is a liquid staking token issued by Solayer. It represents your staked SOL in a form you can use across the Solana ecosystem. One sSOL should be approximately equal to one SOL plus the rewards earned since you staked. You can redeem sSOL for your underlying SOL when you want to unstake.
What is the LAYER token?
LAYER is the primary utility and governance token of the Solayer protocol. Holders can use it to vote on protocol decisions and to participate in staking rewards. It was distributed via the Binance HODLer Airdrop program, where BNB holders received LAYER based on historical Simple Earn balances.
Is Solayer the same as Solana?
No. Solana is the main blockchain network. Solayer is a separate Layer-2 protocol built on top of Solana. Solayer uses Solana as its foundation but adds restaking and liquid staking infrastructure on top to improve capital efficiency for SOL holders.
What are AVS tokens in Solayer?
AVS (Actively Validated Service) tokens are created by DApps that integrate with Solayer. They allow those DApps to offer their users access to yield opportunities and MEV (Maximum Extractable Value) generated through the Solayer restaking pool. Each AVS token is specific to the DApp that created it.
Closing Thoughts
Solayer takes a practical approach to one of Solana's ongoing challenges: making staked capital work harder. By combining restaking with liquid staking tokens, it lets users keep their SOL engaged across the ecosystem without giving up staking rewards. The multi-token model gives the protocol flexibility for governance, liquidity, and application-level integrations.
Further Reading
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