- A Solana restaking technology called Solayer has received funding from Binance Labs.
- The protocol is currently the thirteenth largest Solana protocol, according to DeFiLlama.
The $10 billion venture capital and incubator division of cryptocurrency exchange Binance, known as Binance Labs, has made an undisclosed investment in Solayer, a Solana restaking system.
The investment made by Binance Labs in Solayer is part of the company’s ongoing large bet on the staking and restaking verticals in cryptocurrency. Binance Labs has made investments in a number of staking initiatives recently, spanning several ecosystems like as Ethereum, Bitcoin, and Berachain.
These include the Bitcoin staking protocol Babylon, the Ethereum liquid staking protocols Puffer Finance and Renzo, and the Berachain liquid staking protocol Infrared.
Solayer: What is it?
Like EigenLayer, the first Ethereum restaking mechanism, Solayer is a Solana protocol. By locking up their staked assets in various protocols, referred to as actively verified services (AVSs), users can maximize their winnings through restaking, which enables them to collect additional incentives.
According to its website, Solayer first converts native Solana (SOL) to an intermediary form known as sSOL-raw, which is the liquid staking token (LST) issued by the stake pool manager, in order to facilitate native Solana (SOL) restaking. The site states that following another exchange with the Solayer restaking pool manager, the sSOL-raw gets transformed to sSOL.
According to DeFiLlama, Solayer has grown to be the 13th largest protocol on Solana in just a few weeks after its inception, with over $150 million in total value locked (TVL). According to its website, Solayer now has over 79,000 depositors.
With new funding from Binance Labs, Solayer intends to grow its workforce and integrate additional protocols into the system.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
