The Dramas of Thomas Bahamas
Solana Weekly
Solana Weekly #95 - Josh is Accelerating Solana Through Restaking at Solayer
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Solana Weekly #95 - Josh is Accelerating Solana Through Restaking at Solayer

Guest: Josh from Solayer Labs

Topic: Restaking on Solana, Infrastructure Solutions, and sUSD

Episode Overview

In this episode, we explore how Solayer Labs is revolutionizing Solana's infrastructure through restaking, while differentiating their approach from Ethereum's restaking ecosystem. From transaction throughput optimization to their innovative sUSD stablecoin, we cover the technical and practical aspects of Solayer's solution.

Key Segments

1. Understanding Restaking Fundamentals

  • Origins of restaking from Ethereum's EigenLayer ($14B TVL)

  • Why Solana needed a different approach than Ethereum

  • Evolution from basic staking to liquid staking tokens (LSTs)

  • How restaking extends capital efficiency

  • Current Solana staking yields (~7.25% base + Jito MEV rewards)

2. Solayer's Technical Implementation

  • Stake-weighted Quality of Service (QoS) explanation

  • How Solayer helps dApps secure reliable transaction throughput

  • Infrastructure sharing model for smaller protocols

  • Transaction acceleration without individual validator setup

  • Receipt tokens and delegation process explained

3. The Innovation of sUSD

  • First T-bill backed yield-bearing stablecoin on Solana

  • Implementation of Token-2022 standard

  • UI improvements for user experience

  • How sUSD maintains stable value while accruing yield

  • Integration with major platforms like Phantom and Orca

4. Future Development & Ecosystem Impact

  • Upcoming exo-AVS implementations

  • Partnerships with protocols like Sonic and Bonk

  • Discussion of emerging L2s and rollups on Solana

  • Vision for scaling Solana's infrastructure

  • Potential for new use cases and applications

Technical Highlights

  • Detailed explanation of endogenous vs exogenous AVS

  • How receipt tokens enable multiple layers of yield

  • Infrastructure optimization for validator performance

  • Integration with Jito for MEV rewards

  • Implementation of Token-2022 for yield-bearing assets

User Benefits

  1. Higher yields through multiple staking layers

  2. Support for favorite dApps while earning rewards

  3. Access to T-bill yields through sUSD

  4. Improved transaction reliability for supported protocols

  5. No need to run individual infrastructure

Notable Quotes

"We're not just a restaking company... we are looking to solve Solana core infrastructure and congestion problems using restaking."

"Each ecosystem would have its own restaking in a different flavor... we can't just copy paste whatever's working in Ethereum."

Resources & Links

  • Website: solayer.xyz

  • Twitter: @SolayerLabs

  • Discord: Join for AMAs and community updates

  • Currently supported LSTs: Multiple major liquid staking tokens accepted

Looking Ahead

Solayer Labs is focusing on:

  • Launching exo-AVS implementations

  • Expanding protocol partnerships

  • Developing new scaling solutions

  • Improving infrastructure efficiency

  • Building more ecosystem tools

Quick Terms Guide

  • AVS (Application-Specific Validator Set): A group of validators dedicated to supporting specific applications or services on Solana. Think of it like having specialized highway lanes for certain types of traffic.

  • Stake-Weighted QoS (Quality of Service): A system where the more stake you have, the more reliable your transaction throughput becomes. Similar to having a "fast pass" that's proportional to how much you've staked.

  • Endogenous vs Exogenous AVS:

    • Endogenous: Services native to Solana's main network (like transaction acceleration)

    • Exogenous: External services built on top of Solana (like Layer 2s or rollups)

  • LST (Liquid Staking Token): Tokens you receive when staking SOL that can still be used in DeFi (like JitoSOL or mariSOL)

  • Restaking: Using already-staked assets to secure additional services, essentially making your staked assets work multiple jobs

  • MEV (Maximal Extractable Value): Additional rewards validators can earn from optimizing transaction ordering

  • sUSD: Solayer's yield-bearing stablecoin backed by T-bills, using Token-2022 standard for built-in yield accrual

Discussion about this podcast

The Dramas of Thomas Bahamas
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