Solayer (LAYER)

Governance and Security

Solayer's native LAYER token is used for governance, allowing holders to vote on protocol upgrades such as adding supported assets and managing the treasury for ecosystem initiatives like grants. The token also enables participation in Proof of Stake consensus for Decentralized Verification, where verifiers earn block rewards by securing proofs. In the future, LAYER may serve as a gas token for network transactions, with half of generated fees being burnt to create a deflationary effect.

Restaking and Network Security

Solayer's restaking protocol allows users to re-stake their Solana tokens to enhance network security and scalability. This process, similar to leasing SOL to create space for applications, strengthens the network's economic security while keeping tokens active and generating rewards. The protocol secures both off-chain applications (exogenous AVSs) and on-chain dApps (endogenous AVSs) through stake-weighted Quality of Service infrastructure.

DeFi and Liquidity

sSOL, Solayer's yield-bearing token, serves as a liquid token for DeFi use cases including liquidity provisioning, collateral for lending platforms, and participation in yield farming and liquidity mining programs. sSOL can be deposited into Orca CLAMM pools to provide liquidity to decentralized exchanges and earn fees from trading volume. The token is price-pegged to SOL and integrates with the Pyth oracle network for accurate price tracking.

Stablecoin and Yield

Solayer introduced $sUSD, a yield-bearing stablecoin backed by US T-bills. This stablecoin offers higher yields than traditional T-Bill backed stablecoins through a combination of T-Bill yield and additional returns from Solayer's restaking and MEV activities. The stablecoin has grown to over $30 million in TVL and offers projected APY near 4%.

Hardware and Performance

Solayer's InfiniSVM architecture uses hardware acceleration, including InfiniBand technology and RDMA, to achieve high throughput and near-zero latency. This allows the network to scale infinitely by moving blockchain components into programmable chips, enabling on-demand scaling from single to multiple execution clusters. The architecture supports wallet-agnostic interactions across various Solana-compatible wallets.

Pros of Solayer

• High Performance: Solayer uses InfiniSVM technology with hardware offloading to achieve speeds of up to one million transactions per second and one-millisecond transaction confirmations.
• Scalability: The protocol dynamically scales workloads to handle fluctuating network demands, solving Solana's scalability bottlenecks.
• Security: Solayer enables restaking, allowing users to reuse staked assets to secure additional services on the network while maintaining liquidity.
• Yield Opportunities: Users can earn additional APR and receive liquid restaking tokens like $sSOL, which is price-pegged to $SOL.
• Real-World Utility: Solayer offers a debit card that allows holders to spend crypto directly and has partnered with VISA for enhanced real-world spending integration.
• Growing Adoption: The protocol has over $130 million in total value locked and has attracted significant community interest.

Cons of Solayer

• Limited Information on Tokenomics: The native $LAYER token's tokenomics are not fully disclosed, with only 3% of the total supply allocated for sale.
• No Farming Campaign: Unlike other restaking protocols, Solayer is not currently running a farming point campaign.
• Volatility: Cryptocurrency prices, including Solayer, can be highly volatile.
• Early Stage: The project is still in development, and there is no information on a potential release of its token or specific farming criteria.
• Complexity: The protocol has a medium difficulty level for users to understand and participate in.

Founders of Solayer

The founders of Solayer are Raj Gokal, Jason Li, and Anatoly Yakovenko. Raj Gokal and Anatoly Yakovenko are also co-founders of Solana. Jason Li is the co-founder of MPCVault, a company that develops a non-custodial multisig wallet.

Investors in Solayer

Lead Investors

• Andreessen Horowitz (a16z) - A well-known venture firm that supports blockchain projects.
• Polychain Capital - A crypto-focused fund that has backed many blockchain technologies.

Other Investors in the Seed Round

• Big Brain Holdings
• Hack VC
• Nomad Capital
• Race Capital
• ABCDE
• Arthur Hayes' family office, Maelstrom

Additional Investors

• Binance Labs
• Bitget
• VISA (through partnership with the Emerald Card)
• AMEC (a Chinese company that also became a co-founder)

Angel Investors

• Solana co-founder Anatoly Yakovenko
• Polygon co-founder Sandeep Nailwal

Is Solayer crypto halal?

No, Solayer is not halal. The main reason is that Solayer's sUSD stablecoin is explicitly backed by interest-bearing US Treasury bills, which creates a riba-based income stream. This interest-bearing component violates Islamic principles, even though the restaking utility itself may otherwise be permissible.