Solayer Staked SOL (SSOL)
Solayer is a prominent restaking marketplace operating on the Solana blockchain. It is designed to empower on-chain decentralized applications (dApps) by enhancing network bandwidth while simultaneously securing the Layer 1 (L1) blockchain. Solayer's approach aims to provide dApps on Solana with a higher probability of securing block space and prioritizing transaction inclusion.
The role of sSOL in Solayer
sSOL serves as the universal liquidity layer for delegates and liquidity rebalancing tools (LRTs) on the Solayer platform. Each unit of SOL can be seen as a unit of block space lent towards dApps, contributing to the security of network bandwidth and transactions per second (TPS) on the Solana network.
| Ticker | SSOL |
| Category | Solana Ecosystem |
| Website | https://solayer.org/ |
| @solayer_labs | |
| Contract Addresses | |
|---|---|
| solana | sS...Eh Copied! |
Delegation and liquidity strategies
Stake delegation within Solayer, which results in an AVS SPL token, builds upon the sSOL-SOL liquidity. LRTs also utilize the sSOL liquidity interface to develop vault strategies. sSOL holders have multiple avenues to maximize their yield, including delegating to dApps to enhance network bandwidth or engaging in DeFi strategies to earn additional annual percentage yield (APY), often in collaboration with Solayer's launch partners.
Examples of utilizing sSOL
There are various methods for sSOL holders to leverage their assets and earn maximum yield. These methods include participating in automated market makers (AMMs), lending protocols, and perpetual exchanges.
Liquidity vaults on Kamino
Kamino offers liquidity vaults, an automated solution allowing users to earn yield on their crypto assets by providing liquidity to concentrated liquidity market makers (CLMMs). A vault deploys liquidity into an underlying decentralized exchange (DEX) pool, consisting of two tokens. Depositing into a Kamino vault enables earning from trading volume fees.
Vault capital deposit example
Situation: Suppose you have 100 sSOL valued at $10,000 USD and desire to earn yield without active management.
Use Case: You can deposit your sSOL into a Kamino vault. Your sSOL will supply liquidity to a DEX, accruing fees from trading volume. Kamino handles rebalancing and compounding automatically, ensuring optimal yield.
Benefit: You earn yield passively while maintaining exposure to sSOL.
Liquidity provision on Orca
Orca employs a Concentrated Liquidity Automated Market Maker (CLAMM) to enhance capital efficiency and yield for liquidity providers. By providing liquidity to Orca’s pools, users can earn yield on their crypto assets through trading fees.
LP example
Situation: Assume you have 100 sSOL worth $10,000 USD and wish to earn yield without active management.
Use Case: Deposit your sSOL alongside an equivalent amount of SOL into an Orca CLAMM pool. Your sSOL and SOL will provide liquidity to the DEX, earning fees from trading volume. Orca’s advanced CLAMM technology ensures efficient asset utilization, maximizing returns.
Benefit: You earn yield passively from trading fees while maintaining exposure to both sSOL and SOL.