Solayer Labs Secures $12 Million in Funding Round Led by Polychain

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Solana restaking protocol Solayer raised $12M in a seed funding round led by Polychain Capital and HackVC.

The protocol aims to address the blockchain’s transaction inclusion and scalability challenges through a new approach to network bandwidth optimization.

Restaking – A Nascent Trend

Restaking is rapidly gaining prominence in the crypto industry. An Ethereum-based staking protocol, EigenLayer,  the concept of restaking in late 2022.

Solayer aims to reduce network congestion and increase transaction efficiency by enhancing the system’s scalability amid Solana’s surging user base.

10/ we committed to delivering the infrastructure that benefits the overall security and efficiency of the Solana L1, maximizing value for every user, developer, and meme enjoyers here.

don’t blink.

— Solayer (@solayer_labs) August 27, 2024

Solayer Labs’ Approach

By combining proof-of-stake and proof-of-work, Solayer sets a new benchmark for maximizing the utility of staked tokens, allowing for greater liquidity in the Solana ecosystem.

Solayer introduced the liquid restaking token $SSOL, offering unprecedented efficiency and flexibility to the Solana blockchain.

The restaking protocol enhances transaction censorship resistance by adopting EigenLayer’s ‘shared economic security’ approach. The funding round saw participation from Hock VC, Binance Labs, Race Capital, and ABCDE.

Solayer will release ‘endogenous AVS clients’ and ‘exogenous AVS’ after the fundraising. AVSs are blockchain-based applications that validate transactions with proof-of-stake and proof-of-work consensus mechanisms.

Summing Up

Solayer’s restaking network has the potential to increase Solana network bandwidth. As restaking takes shape on both Ethereum and Solana, we’ll have to wait and see whether it’ll gain mass adoption.

References

• Solayer Labs TVL (DeFi Llama)