How Does Solayer Work?

Solayer: native SOL restaking to extend Solana's economic security to AVS (Actively Validated Services)

Similar to EigenLayer on Ethereum but adapted for Solana's architecture. Users restake SOL or LSTs to secure additional services and protocols, earning yield beyond base staking rewards. The Solana-native implementation has different trust assumptions than Ethereum restaking.

sSOL: liquid restaking token representing restaked SOL plus additional AVS yield

sSOL is a reward-bearing token that accrues both base SOL staking yield and additional AVS rewards. Unlike standard LSTs, sSOL carries restaking-specific risks including AVS slashing exposure.

sUSD: yield-bearing stablecoin backed by tokenized US Treasury Bills

sUSD is a RWA-backed synthetic stablecoin that earns yield from underlying Treasury Bill exposure. Represents Solayer's expansion beyond pure restaking into stablecoin products.

Delegated restaking to validator network securing AVSs on Solana

Users delegate restaked SOL to validators that secure AVSs. Validator selection and distribution follows standard delegation patterns but with additional AVS-specific considerations.

LAYER governance token with network-specific utility planned for InfiniSVM

LAYER token launched February 2025. Governance utility at launch with planned expansion to network-specific utility when InfiniSVM mainnet launches (Q1 2026).

InfiniSVM: hardware-accelerated SVM blockchain using RDMA and InfiniBand for 1M TPS target

Novel approach to blockchain scaling using hardware acceleration (RDMA, InfiniBand) rather than pure software optimization. Targets 1M TPS but mainnet has not yet launched. Currently in devnet.

Emerald Card: crypto-native debit card with yield-earning stablecoin integration

Consumer-facing debit card product allowing direct spending of digital assets. Integrates with sUSD for yield-earning on idle balances. Not novel as a concept but adds consumer exposure risk to the protocol.

Restaked SOL backing multiple AVSs creates leverage-like exposure. If an AVS is compromised, the same SOL that secures the base Solana network is slashed, potentially destabilizing both the AVS layer and the underlying staking layer.

LAYER token value is substantially tied to the InfiniSVM narrative. If the hardware-accelerated blockchain fails to deliver on its 1M TPS promise or faces significant delays, token value could collapse independent of restaking performance.

sSOL used as collateral in DeFi creates cascading liquidation risk. A slashing event that depegs sSOL would trigger liquidations across all protocols accepting sSOL as collateral, amplifying losses beyond the original slashing amount.

sUSD's value depends on the accessibility and integrity of tokenized Treasury Bills held by custodians. Custodian insolvency or regulatory freeze would break sUSD's backing, creating a depeg event.

Operating both a restaking protocol and a stablecoin product creates operational complexity. A crisis in either product could damage confidence in the other, even if the products are technically independent.