Binance Labs Disburses Funds For Solana Staking Protocol: Solayer

Binance invests on the Solana staking platform. (Photo; Doc. PanoramaCrypto)

JAKARTA - As an effort to expand support for innovative projects in the crypto ecosystem, Binance Labs, the venture's capital arm of the world's largest crypto exchange platform, announced a new investment in Solana's staking protocol (SOL) called Solayer.

In a recent blog post, Binance Labs said it had invested an undisclosed amount of funds into Solayer, a Solana-based staking network that has raised more than 150 million US dollars (Rp 2.4 trillion) in Total Value Locked (TVL) and has attracted more than 70,000 unique addresses in just 60 days since its launch.

According to Binance, Solayer's goal is to increase the bandwidth of decentralized applications (DApps) running on the blockchain and to secure the blockchain network.

"Building natively in Solana, Solayer takes advantage of the economic principles of proof-of-stake to expand the security of Solana's base layers to decentralized systems and other DApps...

With the new funds raised from Binance Labs, Solayer plans to expand his team, integrate new protocols into the ecosystem, and establish itself as the core part of the Solana blockchain. In addition, the team will focus on research on solutions to overcome the problem of Solana network congestion by using a restaking infrastructure."

Yi He, co-founder of Binance and head of Binance Labs, said, "Binance Labs is committed to supporting early-stage projects that are driving the growth of the crypto ecosystem. Solayers have emerged as dominant players in the Solana ecosystem, and we are excited to join them on this journey to make the ecosystem more lively."

At the time of writing, Solana is trading for $147, an increase of 1.8% in the last 24 hours.

Last week, Binance Labs also announced an investment in Particle Network, a Cosmos (ATOM-based modular layer-1 blockchain that aims to tackle user fragmentation and liquidity by allowing merchants to have one account on all crypto networks.

Details Of Solayer's Investment And Future Plans

With a total value locked to 150 million US dollars (IDR 2.4 trillion), Solayer shows great potential in securing the network and increasing its operational efficiency.

For information only, Solayer takes advantage of the proof-of-stake principle, where network validators are required to hold a number of SOL tokens as collateral. This not only increases network security but also provides incentives for token holders to continue to support and secure the network.

With this new injection of funds, Solayer plans to expand its development team, invite more protocols to join its ecosystem, and conduct in-depth research to find solutions to network bottleneck problems that often disrupt user experience on Solana's blockchain.

In addition, Solayer also plans to develop a restaking infrastructure, which allows validators to'repeated' their staking on other networks. This is expected to improve network security as a whole and expand the coverage of Solayer usage in various decentralized applications.