# Restaking on Solana

By [Nolafi](https://paragraph.com/@nolafi) · 2024-10-31

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**Restaking on Solana** is in its early stages, with **Solayer** as the only current restaking project, holding a Total Value Locked (TVL) of over **$206 million USD**. The primary tokens restaked on Solayer are **mSOL** and **JitoSOL**, indicating a strong connection between restaking, liquid staking, and Solana's staking model.

Solayer recently raised **$12 million** in funding from Polychain Capital, Binance Labs, and others, and is collaborating with **Open Eden** to introduce the yield-bearing stablecoin $SUSDC. Additionally, **Jito** is working on infrastructure to simplify restaking on Solana, facilitating the creation of liquid restaking tokens like fragSOL and ezUSDC.

### Solana’s Market Position

Solana’s staking ecosystem holds over **$59 billion in SOL**, ranking behind only Ethereum. However, Solana’s liquid staking TVL stands at **$5.5 billion USD**, significantly lower than Ethereum's $49 billion. Despite this, liquid staking on Solana is growing rapidly, with new products like Binance's **BNSOL**, which attracted $62 million in SOL within its first month.

### The Need for Restaking on Solana

Restaking optimizes capital use by allowing users to leverage staked tokens for additional services. Technically, while Solana aims to be robust enough without layer 2s, some layer 2 and appchain developments, like **Bullet** by Zeta and **Pythnet** by Pyth Network, are emerging on the network.

Restaking also carries **systemic risks** due to its leveraged nature; a failure in one project could trigger broader impacts across the ecosystem. In summary, Solana's restaking ecosystem is growing but remains small compared to Ethereum. Nonetheless, the potential for capital optimization could attract more investment over time.

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*Originally published on [Nolafi](https://paragraph.com/@nolafi/restaking-on-solana)*