Restaking on Solana: Optimizing Security and Profit from Staking Assets

Restaking is an initial concept introduced by Eigenlayer on Ethereum. The main idea is to allow users to "reuse" staked assets not only to secure the Ethereum network but also to provide security for other systems – referred to as Actively Validated Services (AVSs). Instead of having assets "frozen" solely for staking purposes, restaking opens up the possibility of using them as collateral for various other services, while also generating additional profits for holders. On Ethereum (Eigenlayer): AVSs are primarily exogenous services (exogenous AVSs) such as cross-chain bridges, oracle networks, or shared sequencers. On Solana (Solayer): Restaking aims at endogenous services (endogenous AVSs), focusing on providing direct support for dApps right within the Solana ecosystem. Restaking on Solana with Solayer @solayer_labs is a restaking network developed on Solana, aimed at enhancing security and optimizing block space for decentralized applications (dApps).

Unlike Eigenlayer, which focuses on external services to Ethereum, Solayer prioritizes internal services to Solana to ensure: dApps are more likely to be prioritized for block space. Transactions can be processed faster and more securely. The entire Solana ecosystem becomes more efficient and stable. How Solayer works

1. Group management reset Users send SOL or Liquid Staking Tokens (LST) to Solayer. SOL will be converted to sSOL-raw and then to sSOL.Users will receive back Solayer assets (representative assets). Currently, these assets do not have liquidity (illiquid) to easily calculate rewards, but in the future, they will be opened for participation in DeFi protocols.
2. Unbonding mechanism Solayer assets can be "unwrapped" back to the original LST without being locked for a long term. Each AVS can design its own unbonding mechanism, but it can take a maximum of only 2 days. There is an "emergency exit" mechanism if the AVS ceases operation, protecting user assets.
3. Delegation Phase – adding security to the network In the next stage, users can delegate Solayer assets to Solayer operators for them to operate the AVS nodes. If the operator acts improperly, users' assets may be subject to (slashing). Therefore, users need to choose a reputable operator with a transparent history. After selecting the operator and the auxiliary network (SVN) for security, users will receive an NFT representing their restaking category. This NFT is unique as the risk depends on each individual's choice.
4. Reward calculation system Solayer uses state watcher to monitor deposits/withdrawals and invite data (invite). Rewards are distributed in real-time to user accounts.
5. Native SOL Restaking When restaking SOL: SOL is converted to sSOL-raw (LST issued by the stake pool. ).sSOL-raw is then forwarded to sSOL through the restaking pool. The entire process takes place in a single transaction, which is both secure and cost-effective. This ensures that SOL remains staked with a validator and benefits from MEV-boosted returns. Easy to understand Imagine you have a garden (blockchain ). You use gardening tools (staking assets ) to grow vegetables. Then, you lend your tools to your neighbor (AVSs). In return, they give you a portion of the vegetables they harvest (additional rewards).With Eigenlayer on Ethereum, your neighbors come from other gardens (exogenous AVSs).With Solayer on Solana, the neighbors are the vegetable growers in the same garden (dApps on Solana). Result: You maximize your tools and harvest more vegetables with higher profits (. Conclusion Restaking on Solana with Solayer opens up a new direction: reusing staking assets to enhance security for dApps right within the Solana ecosystem. This not only benefits stakers )optimizing profits( but also strengthens the safety and efficiency of the entire network. With this model, Solana has the opportunity to become one of the most powerful blockchain ecosystems, attracting developers while also providing optimal value to users. #BuiltonSolayer $LAYER {spot})LAYERUSDT(