Picasso restaking on Solana: SOL and LST staking through IBC guest chain
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Explains Picasso's plan to bring EigenLayer-style restaking to Solana, letting SOL, mSOL, jitoSOL and Orca LP tokens secure a Solana to IBC connection for extra yield, citing the size of Solana's staked supply.
Key claims
Over 392M SOL (over USD 25B, 92% of circulating supply) was staked
EigenLayer TVL was over USD 275M
Initial restakable assets: SOL, mSOL, jitoSOL, Orca LP tokens
Eigenlayer-style restaking is coming to @solana! 👀
Stake SOL, mSOL and jitoSOL and earn additional yield on top of SOL staking rewards! 💸
All while securing Solana's new IBC connection! 🌐
a 🧵 of pure alpha 🤯
@Picasso_Network 1/ Restaking, a new and popular concept, pioneered by @eigencloud on Ethereum.
Soon it is going to be available on @solana, thanks to @Picasso_Network's Solana <> IBC connection.
2/ In brief, restaking involves staking a liquid staking derivative.
This allows stakers to expose their staked assets to additional slashing conditions in exchange for additional yield.
3/ This approach
✅ Amplifies the potential yield for users
✅ Contributes to bolstering security
4/ These benefits are now being delivered into the Solana ecosystem.
@Picasso_Network will initially enable staking of the following tokens in Solana <> IBC validators:
👉 SOL
👉 mSOL
👉 jitoSOL
👉 Orca LP tokens
5/ Pioneered by @eigencloud, the restaking narrative has been gaining traction quickly.
EigenLayer's total value locked (TVL) at the time of writing is over $275 million, indicating the clear demand for restaking.
6/ Unfortunately, @eigencloud is limited to Ethereum.
But there is a huge potential for restaking on other chains too.
This is particularly true on Solana, where there is a massive amount of staking occurring.
7/ Many prominent staking protocols already offering liquid staking tokens (LSTs) and receipt tokens that can be used for various purposes while a user’s original assets remain staked.
8/ In fact, at the time of writing over 392 million SOL are staked (>$25 billion). This is a staggering 92% of the total circulating supply of SOL
There is an incredibly large market for restaking these assets that are already staked in Solana.
9/ @Picasso_Network will accept staking of both Solana’s native SOL token as well as restaking of various receipt tokens for SOL staking platforms.
These tokens can be staked with validators of our Solana <> IBC connection.
10/ Users will be depositing their assets from their connected digital wallets into our staking contracts.
From these contracts, assets will be delegated to validators of our guest blockchain.
11/ Users will accumulate staking rewards proportionate to their staking amount and time.
Thus, they can receive not only the yield on their original stake, but also the yield from restaking.
12/ Learn more here! 👇
x.com/Picasso_Network/status/1734941879068762305
13/ I hope you've found this thread helpful! 🫡
Make sure to follow me @zerokn0wledge_ to stay up to date! 📊🔍
Like/Repost of the below post is also highly appreciated! 🙏👇
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