TLDR:
Solayer raised $12 million in a funding round led by Polychain Capital
The project aims to enhance Solana’s restaking capabilities and address scalability issues
Solayer’s approach focuses on decentralizing bandwidth allocation on Solana
The company has already launched features like a restaking vault and MEV-boost
Solayer’s valuation reached $80 million after the funding round
Solayer, a startup developing a restaking protocol for the Solana blockchain, has successfully raised $12 million in a seed funding round.
The investment was led by Polychain Capital, with participation from several other prominent investors in the cryptocurrency space.
Restaking is a relatively new concept in the blockchain world, where staked tokens used to secure proof-of-stake networks are repurposed to secure additional applications.
This approach, pioneered by protocols like EigenLayer on Ethereum, aims to maximize the utility and economic security of staked assets.
Solayer is applying this concept to the Solana ecosystem, with a specific focus on addressing the network’s scalability and transaction inclusion challenges. The company plans to use the newly acquired funds to build out its restaking network and enhance both the scalability and security of the Solana blockchain.
Rachel Chu, co-founder of Solayer, revealed that the funding round, which closed in May, brought the company’s valuation to $80 million.
The investment was structured as a simple agreement for future equity (SAFE) with token warrants, indicating potential plans for a native token in the future.
One of Solayer’s key objectives is to combat spam and congestion on the Solana network, issues that have become more pronounced as user activity and transaction volume have grown significantly over the past year.
The company’s approach involves decentralizing bandwidth allocation on the network, which they believe will lead to a more resilient and censorship-resistant transaction process.
Solayer distinguishes itself from other restaking platforms by focusing on what they call “endogenous actively validated services” (AVSs).
These are native Solana on-chain decentralized applications, as opposed to the “exogenous” AVSs like cross-chain bridges or oracles that some other restaking protocols prioritize.
Solayer aims to help these native applications reserve block space and prioritize transaction inclusion based on the amount of stake delegated to them.
The company has already made significant strides since its incorporation in February 2024. Solayer launched on the Solana mainnet in May 2024 and has quickly gained traction.
According to their website, the protocol has already restaked over $186 million from approximately 104,500 depositors, making it the 13th largest protocol on Solana by total value locked (TVL).
Solayer’s restaking process involves converting native SOL tokens into an intermediary form called sSOL-raw, which is then converted to sSOL after another interaction with the Solayer restaking pool manager. This mechanism allows users to earn additional rewards by locking up their staked assets in different protocols.
The funding round attracted a diverse group of investors, including Big Brain Holdings, Hack VC, Nomad Capital, Race Capital, ABCDE, and Arthur Hayes’ family office Maelstrom.
Earlier investments came from angel investors, including Solana co-founder Anatoly Yakovenko and Polygon co-founder Sandeep Nailwal.
With the new funding secured, Solayer plans to expand its team, which currently consists of eight people based in San Francisco. The company aims to hire additional staff across various functions, including growth, institutional partnerships, and engineering.
Looking ahead, Solayer has outlined plans to release several new features in the coming months. These include “endogenous AVS clients,” general asset restaking, and “exogenous AVS” capabilities.
The company is also working on the design of its native token, although specific details about its launch have not been disclosed.
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