Solayer: A Cutting-Edge Restaking Protocol on Solana

The blockchain infrastructure market is evolving rapidly, with security as one of its biggest challenges. Developers are eager to create new solutions, but building trust remains a hurdle. How can users be assured that a protocol is truly secure?

EigenLayer pioneered the concept of restaking, offering an efficient way to enhance blockchain security. This mechanism allows ETH already staked on Ethereum to be reused for securing new infrastructure projects.

This approach provides developers with decentralized security while stakers earn additional rewards, maximizing the utility of their assets.

Related: Restaking: A Strategy to Boost Capital Efficiency

The restaking model operates through smart contracts, creating a decentralized trust market. It connects ETH holders with developers, referred to as Actively Validated Services (AVS). Token holders can delegate their staked assets to these projects, earning additional rewards on top of Ethereum’s standard staking returns.

Now, restaking is moving beyond Ethereum, with Solana emerging as a key player in this space. Leading this innovation is Solayer, which is bringing restaking technology to the Solana ecosystem.

What Is Solayer? A Restaking Protocol on Solana

Solayer is a restaking protocol on Solana that enhances security for decentralized applications (dApps) within the blockchain. Essentially, it functions as Solana’s equivalent of EigenLayer, allowing developers to secure their projects using existing network security instead of building their own from scratch.

Restaking enables projects to leverage the economic security of Solana’s Proof-of-Stake (PoS) consensus for validating external applications. This approach reduces costs and accelerates ecosystem growth by allowing new projects to rely on established infrastructure.

Since its launch, Solayer has gained significant traction. The first phase began in spring 2024, with the $20 million deposit cap filling in less than an hour. Users could stake both native SOL and select LST tokens from the Solana ecosystem.

As of now, Solayer’s total value locked (TVL) exceeds $250 million, with more than 540,000 unique active depositors.

Solayer was developed in late 2023, shortly after ETH restaking gained mainstream adoption.

Solayer vs EigenLayer: Key Differences

Solayer was developed in late 2023, shortly after ETH restaking gained mainstream adoption.

EigenLayer allows developers to leverage staked ETH liquidity, enabling them to build infrastructure without creating their own trust system. In the Solana ecosystem, Solayer serves the same function but uses SOL instead of ETH.

The main difference between the two protocols is that Solayer enables users to restake SOL, securing new protocols on Solana, while EigenLayer operates on Ethereum with ETH restaking.

So, why choose Solana?

The Solana community highlights several advantages that make it a strong choice for restaking over Ethereum:

1. Lower Costs: Running nodes on Solana is more affordable than on Ethereum.
2. Faster Block Validation: Solana confirms blocks in 0.4 seconds, while Ethereum takes 20 seconds.
3. Cheaper State Storage: Solana’s architecture reduces costs for dApps, making development more efficient.

One of Solayer’s standout features is the introduction of endogenous Actively Validated Services (AVS). Unlike EigenLayer, where AVS operate externally and are not inherently part of Ethereum, Solayer’s AVS are native to Solana. These protocols use Solayer’s restaking mechanism to enhance their security.

This expands Solayer’s potential, making it possible for NFTs and memecoins to integrate restaking for additional security. While this concept is promising, no major implementations have been observed yet.

Solayer also features Stake-Weighted Quality of Service (SWQoS), which prioritizes transactions based on the amount of tokens staked. The more tokens a staker contributes, the higher the chance their transactions will be included in a block. Validators with a larger stake gain priority in processing transaction batches, improving efficiency and network reliability.

Beyond the Tech: Understanding the LAYER Token

For many, Solayer is known not for its restaking protocol, but for its LAYER token. The project announced its token sale on January 16, and key opinion leaders (KOLs) quickly recognized it as a promising investment opportunity. Shortly after, LAYER was listed on major exchanges like Bybit, drawing even more attention.

The biggest spike in interest came on February 11, 2025, when Solayer launched the Genesis Drop, a large-scale LAYER airdrop. During this event, the project distributed 12% of the total token supply, valued at approximately $104 million at the time.

LAYER has real utility within the Solayer ecosystem, extending beyond speculation. At launch, its primary function is governance, allowing token holders to participate in decision-making. In the future, LAYER will play a key role in InfiniSVM and will be integrated into new dApps developed on Solayer.

As of this writing, LAYER is priced at $0.86, with a market capitalization of $176 million and a fully diluted valuation (FDV) of $860 million. It currently ranks 286th among all cryptocurrencies by market cap and 7th among Liquid Staking Protocols.

Can Solayer Match EigenLayer’s Success?

Solayer secured $22.5 million in its latest funding round. While this may seem modest for a highly competitive market, the total investment could be much higher, as earlier rounds did not disclose specific figures.

Among the notable investors are Polychacin Capital, Anatoly Yakovenko, and YZi Labs (formerly Binance Labs, the venture arm of the Binance crypto exchange). These influential backers have the resources and expertise to support the project when needed.

EigenLayer entered the market with a much stronger financial foundation, securing $164.5 million in funding. This substantial investment gave it a significant edge in technology development, marketing, and team expansion, contributing to its rapid success.

However, Solayer has unique strengths. 

The startup operates within Solana’s expanding ecosystem. Its unique approach and solutions could attract private investors, but gaining widespread adoption will take time. Establishing trust among users and token holders will be essential for its long-term success.

Can Solayer achieve the same level of success as EigenLayer? Possibly, but it will need to secure more funding, refine its technology, and strengthen its market presence. Its future will depend on how well it demonstrates real-world utility and scalability.