Solana‘s Restaking protocol Solayer experienced a significant development today. Deposits surpassed the $20 million mark in just 45 minutes. This happened because Solayer resumed deposit operations on Thursday afternoon. This period was limited to invitations only, and users can restake SOL natively on the Solayer platform or invest in liquid staking products like mSOL, bSOL, JITOSOL, and INF. Solayer has emerged as a prominent player in the race to create a restaking ecosystem on the Solana Blockchain.
A Significant Protocol on the Solana Network
The company stands out in an environment where few Solana restaking protocols, apart from Picasso, have been launched. According to a member of Solayer’s core team, surpassing the $20 million mark within 45 minutes of the start of deposit and withdrawal operations indicates significant excitement in the market. Not only investors but also as a reflection of the interest in Solayer, the company aims to raise $8 million with an $80 million valuation led by Polychain.
Solayer stated that although there is not much information about the company, its protocol has been developed since the end of 2023, and the first deposit period is referred to as “epoch 0.” It is noted that restaked assets will remain locked until “epoch 3.” According to the roadmap published by Solayer, a liquid restaking token called sSOL will be launched in the 6th period.
What Does the Restaking Mechanism Provide?
Restaking involves securing another application layer by using staked tokens that secure Proof of Stake Blockchains or essentially restaking staked tokens a second time.
This development enhances the security of the Blockchain and creates additional yield opportunities by utilizing idle staked assets. Solana is secured with a combination of Proof of Stake and Proof of History. This means that restaking can be applied to the network.
This approach, pioneered by EigenLayer, has raised over $150 million in venture funding on Ethereum and provided over $14 billion in total locked value. Now, we see a similar approach being adopted on Solana. Solayer aims to lead the scaling of the Solana main chain in the coming year.
