Terms and Concepts

  1. Liquid Staking Token (LST): A token representing a staked asset that remains liquid, allowing holders to participate in DeFi activities without unstaking.

  2. Liquid Restaking Token (LRT): A token representing a restaked asset that maintains liquidity, enabling holders to engage in decentralized finance while the asset is restaked.

  3. Restaking: The process of staking an already staked asset on a different network or protocol to enhance security and earn additional rewards.

  4. Liquid Restaking Basket: A collection of liquid restaking tokens that allows investors to diversify their restaked assets while maintaining liquidity.

  5. Shared Validator Network: A network of validators that pool resources to secure multiple blockchains, increasing efficiency and security.

  6. sSOL: A specific token that represents staked Solana (SOL) in a liquid staking protocol, allowing holders to earn staking rewards while maintaining liquidity.

  7. Slashing: A penalty mechanism in proof-of-stake networks where a portion of a validator's stake is forfeited for malicious behavior or network violations.

  8. Restake Withdrawal: The process of withdrawing assets from a restaking position, typically involving the conversion of liquid restaking tokens back into the original asset.

  9. Withdrawal Delay: The time period required for the withdrawal process to complete, often implemented to ensure network security.

  10. Deposit: The act of placing assets into a staking or restaking protocol to earn rewards and participate in network security.

  11. Unrestake: The process of removing assets from a restaking position, converting liquid restaking tokens back into the original asset.

  12. Restake Points: Points or credits earned through restaking that may influence rewards, governance, or other aspects of the protocol.

  13. Unstake Penalty: A penalty incurred for unstaking or unrestaking assets before a specified period, often implemented to ensure network stability.

  14. AVS (Actively Validated Services): Any system that requires unique distributed validation methods for verification.

  15. Exogenous AVS: Systems that maintain off-chain networks and use to establish consensus on security via quorum-based slashing or on-chain verifiable proof. Examples of exogenous AVSs include cross-chain bridges, shared sequencers, oracle networks, among others.

  16. Endogenous AVS: Instead of focusing on exogenous AVSs, Solayer aims to support on-chain decentralized applications (dApps) initially. The goal is to provide dApps on Solana with a greater likelihood of securing block space and prioritizing transaction inclusion.

  17. Stake-weighted Quality of Service (QoS): Refers to the allocation of network resources, such as block space and transaction processing capacity, based on the amount of stake committed by validators or stakers.

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