From EigenLayer to Solayer: Progress or Regression?
Let's start with the answer: from a technical perspective, Solayer isn’t a step backward compared to EigenLayer, but there’s definitely no significant progress either. However, in terms of application, Solayer is closer to a killer blockchain app. So, it's still too early to definitively say which is progress and which is regression. But I'll give you my personal opinion at the end.
Solayer is currently conducting an airdrop, which is why I’m introducing this project to you today. But the airdrop is just an entry point—the real understanding lies in Solayer's underlying value. The long-term success of a blockchain project isn't solely dependent on an airdrop. It’s about how the mechanisms and innovations add value to the ecosystem.
I’ll explain how to participate in the airdrop later. First, let’s look at the core value of Solayer and how it compares to the well-known Ethereum restaking leader, EigenLayer.
1. What is Solayer?
Solayer is a restaking protocol that operates on the Solana network. Its main goal is to optimize validator node resource allocation through staking, thereby improving the quality of service (QoS) for specific applications, particularly in handling transactions during high network congestion.
Notice the key phrase here: “quality of service for specific applications,” where the word "service" refers to the inclusion of transactions in Solana’s blockchain. Although Solana's transaction fees are low, there are frequent instances where transactions fail to be processed, which brings up the issue of service quality. More on that later.
If we think of Solana's block space as a cake, Solayer helps slice the cake, not bake it. That’s because Solayer improves resource distribution via restaking but doesn't fundamentally enhance the network's performance.
The method Solayer uses to slice the cake is simple—it leverages Solana's own stake-weighted quality of service (SwQoS) mechanism. I’ll explain this mechanism in detail later (and dedicate another discussion to it), as it may lead to more centralization and elitism within the Solana ecosystem.
Solayer’s cake-slicing process isn't complex either. It simply restakes to acquire more SOL tokens and allocates them to specific applications, ensuring that these apps can operate smoothly during high traffic.
So yes, saying Solayer slices the cake rather than bakes it is quite accurate.
2. How is Solayer Different from EigenLayer?
EigenLayer is a restaking platform within the Ethereum ecosystem, aiming to provide security to other blockchain projects by restaking ETH tokens. EigenLayer’s key innovation is its cross-chain security expansion—it allows stakers to restake their ETH on Ethereum while also securing other blockchain projects, offering these projects Ethereum-level security.
In other words, EigenLayer offers shared security. Through restaking, it helps projects obtain top-tier security at a lower cost, which is particularly important for high-security applications like cross-chain bridges and oracles.
The biggest difference between Solayer and EigenLayer lies in their goals.
Solayer focuses on optimizing Solana’s own resource allocation, not on expanding security outward. It primarily addresses Solana’s congestion issues by allowing nodes with higher stakes to process transactions first, ensuring that crucial applications and users can continue to operate smoothly during peak times. Solayer’s innovation is not in cross-chain security but in providing a more efficient environment for decentralized applications on the Solana network.
EigenLayer, by contrast, is about cross-chain security expansion. Its restaking mechanism allows multiple blockchain projects to share Ethereum’s security, which is highly attractive for projects needing strong protection. EigenLayer’s goal is to serve multiple blockchains, not to optimize Ethereum’s internal resource allocation.
It’s like solving problems in two different worlds: EigenLayer acts as a security provider for the “blockchain family” (cross-chain networks), while Solayer focuses on enhancing the efficiency of the “Solana household” (the Solana network).
In reality, Solayer’s restaking could be more accurately described as “re-staking,” since it ultimately just restakes SOL tokens back into Solana’s validator nodes. The difference lies in Solayer’s mechanism for redistributing staking power, ensuring that certain applications consistently receive Solana’s block space.
3. Why is Solayer’s Innovation Crucial?
As a high-performance blockchain, Solana theoretically supports 65,000 transactions per second (TPS). But in practice, network congestion has been a significant issue. When transaction volumes spike, Solana’s transaction confirmations often experience delays or failures.
3.1 Solana’s Congestion
Solana’s network has experienced multiple incidents where transactions couldn’t be submitted due to overload, usually caused by excessive transaction volume and inefficient resource allocation.
For example, on September 14, 2021, a surge in transactions caused Solana to crash, with around 400,000 TPS flooding the network, far exceeding its capacity. The network was down for nearly 17 hours.
The most recent congestion occurred in April 2024. During a meme coin trading frenzy, daily transaction volume surged to $4 billion, well above the usual $500 million. This spike caused severe network congestion, with many users unable to submit transactions. The transaction failure rate during this peak was estimated at 70%.
These congestion events reveal Solana’s vulnerability under extreme loads. While it can theoretically handle 65,000 TPS, uneven resource distribution has become a bottleneck.
Aside from the sudden spike in transaction volume (Ore mining deserves some credit), the real problem lies in the misuse of trading bots. These bots flood the network, trying to grab valuable transaction space, clogging it with low-quality transactions that hinder normal operations. To combat this, Solana’s development team released version v1.17.31, aimed at optimizing performance and prioritizing higher-quality transactions.
This update introduced the stake-weighted quality of service (SwQoS) mechanism, prioritizing validator nodes with larger stakes to process transactions, thus reducing the impact of low-quality or malicious transactions.
This is the core backdrop for Solayer’s emergence. Thanks to the SwQoS mechanism, Solayer now has an opportunity to serve specific applications.
Judging by Solayer’s recent successful $12 million fundraising, its model has garnered initial market recognition.
3.2 What is the Stake-weighted Quality of Service Mechanism?
SwQoS is a mechanism within Solana aimed at optimizing transaction processing among validators to tackle congestion. It’s not directly linked to dApps but rather operates on validators. It determines the proportion of transactions a validator can submit based on the amount of SOL they have staked.
The Stake-weighted Quality of Service (SwQoS) mechanism was officially implemented in April 2024. It aims to address the issue of spam transactions in the Solana network and enhance resistance to Sybil attacks. Here’s how SwQoS works and its impact:
3.2.1 Staking Weight Determines Service Priority
In the Solana network, the more SOL tokens a validator stakes, the higher their service quality weight.
During periods of high traffic, validators with larger stakes are allocated better resources, allowing them to process transactions more quickly. This ensures efficient use of network resources, optimizing transaction processing.
3.2.2 Reducing Low-Quality Transactions and Malicious Nodes
SwQoS effectively limits the transaction processing power of nodes with smaller stakes. This reduces the number of transactions these validators can send, preventing the network from being overwhelmed by low-quality transactions and protecting overall network health.
3.2.3 Transaction Prioritization
SwQoS also adds priority to transaction message transmission, giving high-stake validators faster access to resources. This ensures their transactions are processed more quickly.
Not only does this improve overall network throughput, but it also enhances network responsiveness.
3.3 Summary
SwQoS is a key mechanism within the Solana network. By optimizing transaction processing among validators, it enhances both efficiency and security. Of course, this also opens up opportunities for Solayer’s staking innovations. However, the problems SwQoS creates may not be fewer than the ones it solves. That’s a topic for another day when we’ll dive into Solana’s centralization and elitism issues.
4. How to Participate in Solayer Restaking
Click the link to access the following page.
After connecting your wallet, you’ll see the following screen.
Click on the Discord and X buttons to join and follow them. Then, click Next to proceed.
If you don’t have an invite code, use mine: HTFRYJ. After copying and pasting it, you’ll be taken to the next screen.
One important note: the SOL you’ve already staked can be deposited, but the new “s” tokens generated through restaking are not liquid. Only the sSOL earned through staking SOL is liquid.
By clicking the DeFi menu in the upper right corner, you can use your newly generated sSOL in three applications: Orca, Kamino for liquidity provision, and Save for collateralized loans.
In the Delegate menu, your sSOL can also be used within Solayer’s internal AVS services.
Here’s the critical point: once your sSOL is delegated, it becomes locked, and you can no longer use it in DeFi applications.
So, you need to weigh your options. What I did was restake 10 SOL, generated around 10 sSOL, delegated 2.5 to Sonic.
I used the remaining 7.5 sSOL as collateral in Save, borrowing 4.1 SOL to provide liquidity, as shown below.
And with that, you’ve completed your participation in Solayer’s airdrop! Don’t worry, the sSOL you used as collateral still counts toward your airdrop score.
Conclusion
So, is Solayer a step forward or backward compared to EigenLayer?
We have to admit that EigenLayer’s complexity and level of innovation far surpass Solayer’s. Calling Solayer “re-staking” rather than restaking is quite fair.
However, one thing is clear: while EigenLayer focuses on foundational security services,
Solayer is targeting end-user applications. If blockchain truly sees a killer app in the future, it’s certain to be consumer-facing (2C), not infrastructure (2B).
Take electricity as an example. The power plants themselves weren’t killer apps, but the household appliances that used electricity were.
EigenLayer is like building more power plants, while Solayer is empowering appliance manufacturers.
If we go back 15 years, the telecom giants would never have allowed something like WeChat to survive if they’d foreseen its future.
Fortunately, EigenLayer and Solayer exist in the virtual space of blockchain, and this space is big enough for both.
About Airdrop Reference
Airdrop Reference is an innovative blockchain education and promotion platform aimed at spreading basic blockchain knowledge and helping ordinary users understand and participate in the development of blockchain technology. The mission of this project is to lower the entry barriers to blockchain, promote high-quality blockchain projects, and allow more people to enjoy the benefits of the Web3.0 era.
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