The betting landscape of Solana is changing, and re-staking is at the heart of this transformation. Traditional staking allows users to secure the network while earning rewards, but re-staking will add extra layers of security and enhance decentralization.
Re-staking allows stakers to use their assets to support multiple proof-of-stake networks (PoS) at the same time, enhancing security while earning more rewards.
This approach allows holders of SOL and the liquidity staking token (LST) to extend their staking scope beyond the core validators, supporting more network functionalities.
This article explores @solayer_labs ($LAYER ), a resting protocol designed to enhance the security and scalability of Solana. The article discusses how the resting mechanism of Solayer works, the role of the LAYER token, validator selection, risk management, and earning opportunities.
What is Solayer (LAYER)?
Staking is the act of locking cryptocurrency assets to support blockchain activities, such as transaction validation and receiving rewards. Solayer is inspired by mechanisms like Ethereum's EigenLayer, introducing the concept of restaking into Solana.
Solayer is a protocol for resetting SOL that allows SOL holders to extend the utility of their staked assets beyond the core validators that maintain the integrity of Solana. By allowing the resetting of SOL, Solayer facilitates the secure delegation of SOL to Active Verified Services (AVS) such as oracles and bridges within the ecosystem, improving their security and reliability, thereby strengthening on-chain applications.
The redistribution of staked assets enhances the security and decentralization of the network as a whole, while also providing users with additional opportunities to earn rewards.
How does the recovery mechanism of Solayer work?
Solayer integrates with Solana's Proof-of-History (PoH) to ensure that restaking does not affect the finality of the network - the point at which transactions are confirmed and irreversible. PoH timestamps transactions cryptographically, allowing validators to process them in a fixed order. Solayer redistributes staked SOL without impacting transaction speed or consensus integrity.
Reset process
Users stake SOL or LST through Solayer, locking assets into authorized smart contracts beyond the core validators of Solana.
The validators allocate SOL and LST that have been staked, which are tokens received when SOL is staked through LSTs like Marinade (mSOL), on various security layers and projects supporting the network, such as oracle, cross-chain bridges, and execution layers. These services rely on staked assets to enhance reliability and security.
Smart contracts regulate decentralization based on security needs and network operations, ensuring SOL and LST are placed in a way that reinforces the system while maximizing efficiency.
By allowing SOL or LST to secure multiple services, Solayer strengthens the network and expands earning opportunities for users.
Distributing reward
The staker will receive rewards in sSOL, representing the SOL they have staked in the Solayer ecosystem. These rewards come from transaction fees, validator incentives, and network participation bonuses.
Restaking expands the role of validators, allowing them to secure more decentralized services while still earning additional rewards.
The reward ensures a balance between security and incentives, enhances the resilience of the network, and encourages long-term participation.
eSOL still has liquidity, allowing users to reinvest in decentralized finance applications (DeFi) or withdraw their underlying SOL or LST when cancelling the deposit.
Smart contract interaction and verification process
Solayer automates the allocation of staking and the distribution of rewards through smart contracts, ensuring effective and secure allocation of SOL.
Select a validator: Solayer's smart contract allocates SOL based on the reputation, performance, and security contributions of the validator. Automatic redistribution: The smart contract adjusts decentralization flexibly, optimizing security without manual intervention. Risk management: The protocol monitors validators and reallocates SOL if security issues arise.
What is Layer Token and how does it work?
LAYER is the native token of Solayer and serves as the foundation for its resting ecosystem. It supports network security, governance, and incentives for validators, while also covering transaction fees.
Utility: LAYER supports governance, rewards for validators, and transaction fees. It synchronizes incentives and ensures the re-staking process. Token distribution: Determine the total supply, initial allocation (team, investors, rewards), and staking mechanism. Part of it supports validators, ecosystem growth, and protocol development. Governance: It also provides holders with voting rights on network upgrades, security policies, and staking rules, ensuring decentralization and adaptability.
Ideally, the tokenomics model will have a structure that enhances security, encourages participation, and maintains the long-term stability of the network.
Recovering Solayer: Risks and Benefits
Users should consider both the risks and benefits before participating in the recovery mechanism of Solayer.
Risks when re-staking Solayer
Smart contract risks: The contract automatically handles the betting and decentralization, but security vulnerabilities can lead to capital loss. Penalties for validators: Poor performance or malicious actions can result in slashing, removing a portion of the staked SOL of the validator as a penalty. AVS risks: Users transferring SOL to AVS will bear risks from these services, including security breaches, downtime, or smart contract errors that may affect rewards. Liquidity volatility: sSOL still has liquidity, but market conditions and user demand determine its value and tradeability. Changing rewards: Profits are not fixed and depend on the effectiveness of the validator, network activity, and AVS performance. Delays in unstaking: Restaking involves withdrawal times, typically lasting several days and tied to the epoch time of Solana, during which users cannot access their SOL. Protocol uncertainty: As a new platform, Solayer faces risks associated with adoption, security updates, and unforeseen technical issues.
The benefits of staking with Solayer
Higher rewards: Users will receive additional incentives when securing multiple services beyond Solana's core validator. Enhanced security: By redistributing staked SOL across different validation layers, Solayer minimizes attack risks and strengthens network integrity. Increased decentralization: Restoring ownership expands security contributions to AVS, reducing reliance on a small group of validators. Liquidity through sSOL: Users receive sSOL, which can be used to create additional earning opportunities in DeFi applications. Automated staking management: Smart contracts flexibly adjust delegation rights, eliminating the need for manual adjustments. Flexible staking options: Users can allocate SOL across multiple security layers, diversifying their staking strategies.
How does Solayer compare to other Resting mechanisms?
Solayer competes with other staking mechanisms on Solana, such as Jito and Picasso, each mechanism offering a different approach to securing the network and maximizing staking rewards.
While Solayer prioritizes native integration and validation coordination, Jito focuses on staking efficiency, while Picasso allows cross-chain restaking. The table below highlights their main differences:
The bettor primarily uses Jito to stake native SOL, but Jito also issues JitoSOL, an LST that collects rewards with a maximum extractable value of (MEV) - profits from optimizing transaction order and execution - to increase profits.
Although Jito's restaking service does not restake other LSTs like Solayer, stakers can use JitoSOL in the Solayer ecosystem for additional restaking opportunities. This allows stakers to benefit from Jito's enhanced MEV staking feature while ensuring multiple services through Solayer.
On the other hand, Picasso allows bettors to use SOL and liquidity-staked derivative products to secure AVS across multiple blockchains through the (IBC) Inter-Chain Communication protocol. This expands the staking utility beyond Solana and enhances security across different networks.
Conclusion
Solayer (LAYER) introduces a restaking model, extending SOL staking beyond the core validators, enhancing security, decentralization, and staking efficiency within the Solana ecosystem. By allowing users to stake SOL and LST across multiple layers of security, Solayer strengthens the network while providing more earning opportunities.
The LAYER token supports governance, rewards for validators, and transaction fees, ensuring a sustainable staking ecosystem. The smart contract manages the delegation automatically, selects validators, and minimizes risks, optimizing security without manual intervention.
The re-staking of (resting) continues to be expanded in Solana, providing new ways to secure decentralized services. As protocols refine the staking mechanism, Solayer's approach to shared validation networks and economic security will shape Solana's ecosystem. #BuiltonSolayer
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Solayer: How Does the Restaking Protocol Enhance the Security and Scalability of Solana?
The betting landscape of Solana is changing, and re-staking is at the heart of this transformation. Traditional staking allows users to secure the network while earning rewards, but re-staking will add extra layers of security and enhance decentralization. Re-staking allows stakers to use their assets to support multiple proof-of-stake networks (PoS) at the same time, enhancing security while earning more rewards. This approach allows holders of SOL and the liquidity staking token (LST) to extend their staking scope beyond the core validators, supporting more network functionalities. This article explores @solayer_labs ($LAYER ), a resting protocol designed to enhance the security and scalability of Solana. The article discusses how the resting mechanism of Solayer works, the role of the LAYER token, validator selection, risk management, and earning opportunities. What is Solayer (LAYER)? Staking is the act of locking cryptocurrency assets to support blockchain activities, such as transaction validation and receiving rewards. Solayer is inspired by mechanisms like Ethereum's EigenLayer, introducing the concept of restaking into Solana. Solayer is a protocol for resetting SOL that allows SOL holders to extend the utility of their staked assets beyond the core validators that maintain the integrity of Solana. By allowing the resetting of SOL, Solayer facilitates the secure delegation of SOL to Active Verified Services (AVS) such as oracles and bridges within the ecosystem, improving their security and reliability, thereby strengthening on-chain applications. The redistribution of staked assets enhances the security and decentralization of the network as a whole, while also providing users with additional opportunities to earn rewards. How does the recovery mechanism of Solayer work? Solayer integrates with Solana's Proof-of-History (PoH) to ensure that restaking does not affect the finality of the network - the point at which transactions are confirmed and irreversible. PoH timestamps transactions cryptographically, allowing validators to process them in a fixed order. Solayer redistributes staked SOL without impacting transaction speed or consensus integrity. Reset process Users stake SOL or LST through Solayer, locking assets into authorized smart contracts beyond the core validators of Solana. The validators allocate SOL and LST that have been staked, which are tokens received when SOL is staked through LSTs like Marinade (mSOL), on various security layers and projects supporting the network, such as oracle, cross-chain bridges, and execution layers. These services rely on staked assets to enhance reliability and security. Smart contracts regulate decentralization based on security needs and network operations, ensuring SOL and LST are placed in a way that reinforces the system while maximizing efficiency. By allowing SOL or LST to secure multiple services, Solayer strengthens the network and expands earning opportunities for users. Distributing reward The staker will receive rewards in sSOL, representing the SOL they have staked in the Solayer ecosystem. These rewards come from transaction fees, validator incentives, and network participation bonuses. Restaking expands the role of validators, allowing them to secure more decentralized services while still earning additional rewards. The reward ensures a balance between security and incentives, enhances the resilience of the network, and encourages long-term participation. eSOL still has liquidity, allowing users to reinvest in decentralized finance applications (DeFi) or withdraw their underlying SOL or LST when cancelling the deposit.
Smart contract interaction and verification process Solayer automates the allocation of staking and the distribution of rewards through smart contracts, ensuring effective and secure allocation of SOL. Select a validator: Solayer's smart contract allocates SOL based on the reputation, performance, and security contributions of the validator. Automatic redistribution: The smart contract adjusts decentralization flexibly, optimizing security without manual intervention. Risk management: The protocol monitors validators and reallocates SOL if security issues arise. What is Layer Token and how does it work? LAYER is the native token of Solayer and serves as the foundation for its resting ecosystem. It supports network security, governance, and incentives for validators, while also covering transaction fees. Utility: LAYER supports governance, rewards for validators, and transaction fees. It synchronizes incentives and ensures the re-staking process. Token distribution: Determine the total supply, initial allocation (team, investors, rewards), and staking mechanism. Part of it supports validators, ecosystem growth, and protocol development. Governance: It also provides holders with voting rights on network upgrades, security policies, and staking rules, ensuring decentralization and adaptability. Ideally, the tokenomics model will have a structure that enhances security, encourages participation, and maintains the long-term stability of the network. Recovering Solayer: Risks and Benefits Users should consider both the risks and benefits before participating in the recovery mechanism of Solayer. Risks when re-staking Solayer Smart contract risks: The contract automatically handles the betting and decentralization, but security vulnerabilities can lead to capital loss. Penalties for validators: Poor performance or malicious actions can result in slashing, removing a portion of the staked SOL of the validator as a penalty. AVS risks: Users transferring SOL to AVS will bear risks from these services, including security breaches, downtime, or smart contract errors that may affect rewards. Liquidity volatility: sSOL still has liquidity, but market conditions and user demand determine its value and tradeability. Changing rewards: Profits are not fixed and depend on the effectiveness of the validator, network activity, and AVS performance. Delays in unstaking: Restaking involves withdrawal times, typically lasting several days and tied to the epoch time of Solana, during which users cannot access their SOL. Protocol uncertainty: As a new platform, Solayer faces risks associated with adoption, security updates, and unforeseen technical issues. The benefits of staking with Solayer Higher rewards: Users will receive additional incentives when securing multiple services beyond Solana's core validator. Enhanced security: By redistributing staked SOL across different validation layers, Solayer minimizes attack risks and strengthens network integrity. Increased decentralization: Restoring ownership expands security contributions to AVS, reducing reliance on a small group of validators. Liquidity through sSOL: Users receive sSOL, which can be used to create additional earning opportunities in DeFi applications. Automated staking management: Smart contracts flexibly adjust delegation rights, eliminating the need for manual adjustments. Flexible staking options: Users can allocate SOL across multiple security layers, diversifying their staking strategies. How does Solayer compare to other Resting mechanisms? Solayer competes with other staking mechanisms on Solana, such as Jito and Picasso, each mechanism offering a different approach to securing the network and maximizing staking rewards. While Solayer prioritizes native integration and validation coordination, Jito focuses on staking efficiency, while Picasso allows cross-chain restaking. The table below highlights their main differences:
The bettor primarily uses Jito to stake native SOL, but Jito also issues JitoSOL, an LST that collects rewards with a maximum extractable value of (MEV) - profits from optimizing transaction order and execution - to increase profits. Although Jito's restaking service does not restake other LSTs like Solayer, stakers can use JitoSOL in the Solayer ecosystem for additional restaking opportunities. This allows stakers to benefit from Jito's enhanced MEV staking feature while ensuring multiple services through Solayer. On the other hand, Picasso allows bettors to use SOL and liquidity-staked derivative products to secure AVS across multiple blockchains through the (IBC) Inter-Chain Communication protocol. This expands the staking utility beyond Solana and enhances security across different networks. Conclusion Solayer (LAYER) introduces a restaking model, extending SOL staking beyond the core validators, enhancing security, decentralization, and staking efficiency within the Solana ecosystem. By allowing users to stake SOL and LST across multiple layers of security, Solayer strengthens the network while providing more earning opportunities. The LAYER token supports governance, rewards for validators, and transaction fees, ensuring a sustainable staking ecosystem. The smart contract manages the delegation automatically, selects validators, and minimizes risks, optimizing security without manual intervention. The re-staking of (resting) continues to be expanded in Solana, providing new ways to secure decentralized services. As protocols refine the staking mechanism, Solayer's approach to shared validation networks and economic security will shape Solana's ecosystem. #BuiltonSolayer