- Binance Labs invests in Solayer to support Solana’s ecosystem.
- Solayer plans to address Solana’s network congestion issues.
- Restaking is the newest tech that promises to decentralize dApps.
In recent months, Solana has seen a growing number of decentralized protocols join its ecosystem. Attracted by its high speed and developer-friendly environment, these applications are key to boosting Solana’s network.
Most recently, one such app gained outside recognition for its potential. Binance Labs, the venture capital arm of the world’s largest crypto exchange, invested in Solayer. This application aims to boost Solana’s performance and help secure the network and its apps.
Solayer Gets Major Backer in Binance Labs
Decentralized applications (dApps) on Solana are increasingly getting outside recognition. On Wednesday, August 7, Binance Labs revealed its investment in Solayer, the largest restaking network on Solana. The funding aims to support Solayer’s efforts to boost Solana’s network bandwidth with security.
Solayer uses restaking to extend Solana’s base layer security to dApps. So far, smaller dApps had to rely on a limited number of validators, exposing them to attacks. With restaking, users can delegate their stakes to multiple validators, each multiple dApps. This means that dApps get the security from a much larger validator pool.
At the same time, restaking offers more rewards to validators. This helps networks attract more validators, boosting both their security and performance. This is key for high-performance chains like Solana’s, where validators need advanced hardware to compete for rewards. For those reasons, both stakers and validators are flocking to Solayer.
Solayer Sees Significant Traction Since Launch
Solayer has been gaining significant traction since its launch just 60 days ago. At that time, the app became the 13th largest protocol on Solana, gaining over $150 million in Total Value Locked (TVL). In addition, the protocol attracted more than 70,000 unique deposit addresses.
With the fresh capital from Binance Labs, Solayer plans to scale its team, integrate new protocols into its ecosystem, and research solutions to mitigate Solana’s network congestion issues. This will put the protocol in a good position to support Solana’s growing ecosystem.
On the Flipside
- Binance Labs is investing in many Web3 startups. Earlier in August, the firm announced its latest incubation projects, including 0xAarc, FluxLayer, and Ton_Ton Games.
- Other protocols, including Jito, are also competing for the restaking market on Solana.
Why This Matters
When dApps on Solana get investment from outside the Solana ecosystem, the apps and the network gain credibility. Other investors see Binance Labs’ investment as an endorsement of both the app and the Solana ecosystem.
Read more about restaking on Solana:
Solana Finally Gets Restaking: Why It’s the Key to Decentralization
Read more about Binance’s latest reserve figures:
Is Binance’s $1.2 Billion Daily Net Inflow What it Seems?
