Binance Labs invests undisclosed sum in Solana Restaking Protocol Solayer
Solayer, a leading restaking protocol on Solana, has received undisclosed funding from Binance Labs.
1/ 🎉 Proud to announce our latest investment from @BinanceLabs!
— Solayer (@solayer_labs) August 7, 2024
Becoming the leading restaking network on Solana requires the support of strong industry partners, and today’s announcement is validation of the progress and vision we have. pic.twitter.com/RsTI7w0pQH
According to a post, the venture capital and incubation division of Binance Labs stated that the primary aim of the investment is to secure the L1 and improve network bandwidth for on-chain decentralized applications (dApps) in order to improve the Solana ecosystem.
Solayer intends to expand its staff, integrate new protocols into the ecosystem, and solidify its position as a core primitive of the Solana blockchain with the newly secured funding from Binance Labs. Furthermore, the team will focus on researching ways to use restaking infrastructure to address Solana's network congestion issues, the post added.
The full system will be rolled out soon, and this will enable stakers to use SOL to secure Solana, and DApps can secure transaction throughput and network bandwidth, the post added. Furthermore, Solayer will concentrate on general asset restaking, which protects exogenous Actively Validated Services (AVS), systems that are external to Solana.
Solayer, which was built natively on Solana, extends the security of Solana's base layer to other decentralized applications and systems by utilizing the economic principles of proof-of-stake. By allowing users to participate in a decentralized validator network, this innovative approach enhances the liveliness and security of the Solana ecosystem. Users can yield from delegated Actively Validated Services (AVS), earn native yields through MEV boost, and stake assets to decentralize Solana, the post added.
Yi He, Co-Founder of Binance and Head of Binance Labs, said Binance Labs is dedicated to assisting projects at the early stage that drive the expansion of cryptocurrency ecosystems. Yi He added that in the Solana ecosystem, Solayer has become a dominant player, and Binance Labs is thrilled to join Solayer on their journey to create a more vibrant ecosystem.
Jason, co-founder of Solayer Labs, shared his excitement about Binance Labs investment in Solayer and said we are one step closer to achieving our goal of enhancing the Solana ecosystem and providing more value to dApps on Solana with Binance Labs' backing and strong support," stated Jason, co-founder of Solayer Labs.
DeFiLlama reports that since phase 1's launch, Solayer has risen to rank 13th among all protocols on Solana in less than 60 days. Over 70,000 unique deposit addresses have been drawn to the platform, and over $150 million in Total Value Locked (TVL) has been amassed, the report added.
Following the announcement of the investment, SOL's price has decreased by 3.18% in the last day to $144.56, and the cryptocurrency's trading volume has decreased by 3.47% to $5,617,548,798, as of the time of writing.
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