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Endogenous AVS: The swQoS Infrastructure for dApps

Endogenous AVS: The swQoS Infrastructure for dApps

Solayer Core

May 31, 2024

Key takeaways

  • Solayer is creating a trustless marketplace that allows dApps to manage and collect staked tokens from users and get the right amount of processing power directly from validators.

  • By supporting native Solana dApps (endogenouns AVSs), Solayer enhances network efficiency and security, enabling dApps to reserve block space and prioritize transactions based on the amount of tokens staked with them.


Envisioning a future for decentralized applications

Imagine a world where decentralized applications (dApps) can control how much power they have to process transactions on the blockchain by staking tokens into validators. This means that the more tokens a dApp has staked, the more it can influence the network’s operations. As a result, user transactions become faster and more reliable. Big dApps with many users and a lot of staked tokens benefit the most, as they get more transaction processing power without having to pay extra fees.

Solayer is creating a trustless marketplace that allows dApps to manage and collect staked tokens from users and get the right amount of processing power directly from validators. Unlike Eigenlayer, which focuses on external services like cross-chain bridges and oracles, Solayer starts with native Solana dApps. These are called endogenous AVSs (Actively Validated Services), and Solayer helps them secure the necessary block space and prioritize their transactions based on the tokens staked with them.

In simpler terms, Solayer allows dApps on Solana to reserve their own space and processing power on the blockchain. This makes the network more efficient and reliable for everyone using these applications.


Solayer endogenous AVS token

Solayer provides decentralized applications (dApps) with an easy method to create their own AVS Liquid Staking Tokens (LST). These tokens offer Solana’s native staking yield as their base rewards, supplemented by additional Miner Extractable Value (MEV) yields. Solayer optimizes the staking yield by delegating it to the highest yield-bearing validators and running its own validator implementation that supports app-level stake-weighted quality of service provisioning. dApps can receive a portion of the staking commission and will be able to configure the underlying operators for stake delegation in the future. The Solayer AVS Token is a delegated representation of sSOL, the Solayer-managed LST token on Solana.

In the future, dApps will have direct control over the validators to which the underlying SOL is delegated. They will also be able to configure the required stake-weighted quality of service with a dynamic pricing mechanism based on the current network workload.


Solayer stake delegation flow

The Solayer stake delegation process is straightforward:

  1. Conversion: Users convert SOL into its natively staked form, sSOL.

  2. Delegation: Staked SOL is delegated to Solayer-recommended validators, which then delegate it to an endogenous dApp AVS on Solayer, converting sSOL to a delegated form.

  3. Minting Tokens: Solayer AVS mints AVS tokens, which serve as stake proof to retrieve staked SOL and claim rewards.


Solayer unstake and rewards collection

Upon withdrawal requests, Solayer AVS unstake AVS tokens back to sSOL. Users can then claim the SOL from Solayer along with the staking rewards, including Solana staking rewards and AVS rewards. Solayer will share a portion of the Solana staking commission back to the dApps, while users retain the majority of the staking rewards.



Conclusion

Endogenous AVSs on Solayer represent a significant advancement in how decentralized applications can manage their operational capacity and security. By leveraging application-level staking and Solayer's innovative restaking marketplace, dApps can achieve greater efficiency, reliability, and scalability. This system not only enhances the performance of individual dApps but also contributes to the overall robustness and security of the Solana network. As Solayer continues to evolve, it will empower dApps to harness the full potential of blockchain technology, driving the future of decentralized ecosystems.

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solayer

Solayer leverages the economic principles of staking to extend the security of Solana's base layer.

©2024 Solayer · All Rights Reserved

solayer

Solayer leverages the economic principles of staking to extend the security of Solana's base layer.

©2024 Solayer · All Rights Reserved