4 min read

Luganodes X Solayer: Powering Solana Restaking

Shaping the future of Solana

Cover Image

Published on

14 Oct, 2024

Introduction

Luganodes is excited to announce our support for Solayer, the premier restaking marketplace on Solana. This partnership brings our institutional-grade expertise in secure validation to Solana’s ecosystem, enhancing both the security of Solana’s Layer 1 (L1) and expanding the capabilities of decentralized applications (dApps) through Solayer’s innovative restaking and AVS platforms.

What is Solayer?

Solayer is the leading restaking protocol on Solana, designed to empower on-chain decentralized applications (dApps) with enhanced network bandwidth and greater Layer 1 (L1) security. By enabling users to restake their SOL tokens, Solayer provides dApps with expanded capabilities to secure blockspace, optimize transaction priority, and benefit from increased staking rewards.

The protocol’s architecture is centered around two key components: the Restaking Pool Manager, which oversees asset flow and conversion to Solayer tokens like sSOL, and the Shared Validator Network (SVN), which promotes efficient resource allocation and security sharing across Solana’s ecosystem. Together, these components form an adaptable infrastructure, advancing both application support and cross-chain interoperability.

Solayer’s Core Platforms

  1. Restaking on Solana

Solayer offers SOL restaking to help secure the Solana network and favorite dApps. By depositing SOL into Solayer’s restaking pool, users receive sSOL, a liquid restaking asset that earns a native yield of 8.12%. The delegated sSOL is used to secure and enhance transaction throughput across Solana-integrated applications, allowing users to earn additional AVS-boosted rewards on top of their native yield.

  1. AVS Offering: Accelerated Application Services

Solayer’s Application Validation Services (AVS) introduce a unique model designed specifically to support on-chain decentralized applications (dApps), termed Endogenous AVSs (endoAVSs). Unlike traditional platforms that focus on exogenous AVSs (such as oracles and bridges), Solayer prioritizes enhancing the capabilities of native Solana dApps, providing them with prioritized transaction inclusion and secure block space through Stake-weighted Quality of Service (swQoS).

Restakers can allocate blockspace by delegating their sSOL to specific AVSs, amplifying network efficiency for these high-priority applications while ensuring faster and more reliable transaction processing for users.

  1. DeFi Integrations

By integrating sSOL into Solana’s DeFi ecosystem, Solayer unlocks diverse yield-generating opportunities for holders. sSOL can be delegated to dApps to enhance network bandwidth or utilized in DeFi strategies. For instance, holders can deposit sSOL into Kamino’s liquidity vaults to passively earn from trading fees in concentrated liquidity pools, or provide liquidity on Orca, where the advanced CLAMM setup maximizes capital efficiency and yield. These options, among others, allow sSOL holders to participate in DeFi seamlessly, earn additional APY, and leverage their holdings across Solana applications.

  1. sUSD: The Yield-Bearing Stablecoin

Solayer introduces sUSD, the first yield-bearing stablecoin on Solana, backed by U.S. Treasury Bills. sUSD allows users to restake their USDC to receive sUSD instantly, which earns 4-5% T-Bill yield. This stablecoin can be used for payments, collateral, and trading while also securing Solana-integrated systems like oracles, bridges, and L2s. Designed to be fully compliant and easily integrated across the Solana ecosystem, sUSD is optimized for secure, scalable usage in DeFi and other decentralized applications.

Luganodes X Solayer

With our entrance into Solana’s restaking landscape through Solayer, Luganodes brings best-in-class security and operational support to Solana’s ecosystem. Our partnership provides priority acceleration services for endoAVSs and empowers Solayer’s mission to enhance Solana’s security and performance. This collaboration ensures that Solayer’s platforms are backed by secure, reliable validation, helping dApps and users maximize their restaking benefits with confidence.

Conclusion

Solayer’s restaking and AVS platforms are reshaping the future of Solana, and Luganodes is thrilled to be a part of this journey. With expanded security and enhanced transaction capabilities, we look forward to supporting Solana’s ecosystem through Solayer, setting new standards for decentralized applications and yield-bearing assets.

About Luganodes

Luganodes is a world-class, Swiss-operated, non-custodial blockchain infrastructure provider that has rapidly gained recognition in the industry for offering institutional-grade services. It was born out of the Lugano Plan B Program, an initiative driven by Tether and the City of Lugano. Luganodes maintains an exceptional 99.9% uptime with round-the-clock monitoring by SRE experts. With support for 45+ PoS networks, it ranks among the top validators on Polygon, Polkadot, Sui, and Tron. Luganodes prioritizes security and compliance, holding the distinction of being one of the first staking providers to adhere to all SOC 2 Type II, GDPR, and ISO 27001 standards as well as offering Chainproof insurance to institutional clients.

Line pattern
© 2024 Luganodes | All rights reserved