Picasso: restaking hub for Solana via an IBC guest chain
Thread1,020 words
Thesis that restaking spreads beyond Ethereum and Picasso is the Solana restaking hub, securing a Solana-IBC guest chain with SOL and LSTs. Vault caps rise from 50k to 500k SOL, with 17.5M PICA in rewards.
Key claims
Vault caps of 50,000, 150,000 and 500,000 SOL across three rounds
17,500,000 PICA allocated to vault participants
Winning team earns 80% of transfer revenue for 30 days
Restaking season is in full swing with @eigencloud on Ethereum.
What many are fading is that the restaking narrative has already expanded to @solana!
Let me introduce you to the "EigenLayer of Solana" and my thesis for the SOL restaking season!
Alpha-🧵
1/ To make it in crypto you have to:
✦ Identify the key narratives early
✦ Anticipate how these narratives evolve
✦ Find the plays that lead the chosen narratives
The restaking narrative will make millionaires. You can still be among them.
2/ The whole restaking hype started with @eigencloud, which introduces a general purpose layer for programmable trust.
EigenLayer leverages the security of Ethereum validators (or subsets) to secure decentralized networks running arbitrary programs.
3/ @eigencloud and the fast-growing ecosystem of restaking protocols and Actively Validated Services (AVS) around it, will remain at the core of the narrative.
But it's by no means limited to Ethereum.
4/ The narrative is already expanding.
Restaking will reach other ecosystems, where other networks' security layers are repurposed to bootstrap decentralized networks for all sorts of use cases.
5/ One of the biggest ecosystems outside of Ethereum that has seen considerable action in past months is @solana.
6/ For certain use cases (with less strict security requirements), bootstrapping a network on Solana, can also make sense.
The amount of idle LSD capital that could power a crypto-economically secured restaking layer is significant for sure.
7/ So what if I told you there was a protocol that is already positioned as the main restaking hub of @solana.
A protocol that will continue that will turn into a blackhole for SOL and LSDs
8/ A protocol that will add support for other tokens, turning into an asset agnostic restaking layer for programmable trust across ecosystems.
Enter @Picasso_Network!
9/ @Picasso_Network will accept staking of both Solana’s native SOL token as well as restaking of various liquid SOL staking tokens.
These tokens can be staked with validators of the the "guest blockchain", securing the Solana <> IBC connection.
10/ The guest chain extends the host capabilities with support for the creation of state proofs and acts as the protocol light client.
Thereby, also it crypto-economically secures the IBC <> Solana connection.
11/ This brings two main benefits:
👉 The approach is generic and can be applied to any blockchain that supports some form of smart contacts.
👉 It does not require changes to the underlying host.
12/ A secure IBC connection on @solana is important as it expands the universe of assets on Solana and brings in new liquidity.
In tandem, it will increase the number of distinct assets accepted in the @Picasso_Network restaking vaults.
13/ In the future, @Picasso_Network will also allow for restaking of assets from the Polkadot & Cosmos ecosystems.
The vision is to enable asset-agnostic, restaked validation to be used to power other chains & protocols, similar to what EigenLayer does with restaked ETH.
14/ 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.
15/ The assets that can soon be staked into @Picasso_Network’s Solana <> IBC validators specifically include:
👉 SOL: @Solana's native token with a market cap over $28 billion, ranking it 6th in total market cap.
16/
👉 mSOL: @MarinadeFinance's liquid staking token, aimed at optimizing yields by delegating to top-performing Solana validators.
👉 jitoSOL: @jito_labs' liquid staking token, promising SOL staking with MEV rewards.
17/
👉 Orca LP Tokens: Tokens for liquidity providers on @orca_so DEX.
👉 bSOL: Tokens from @solblaze_org's non-custodial liquid stake pool.
18/ Now, the @Picasso_Network restaking vault are finally live and the team staking competition has kicked off on @Solana!
Picasso has chosen to go for a guarded launch to best ensure protocol security.
19/ This means restaking vaults are launching with volume limits.
These limits will be raised progressively in three different rounds.
Ultimately the goal is for restaking in the @Picasso_Network ecosystem to be uncapped and open.
20/ The parameters of the guarded launch of the restaking vaults are as follows:
✅ Round 1: 50,000 SOL cap (done)
🚨 Round 2: 150,000 SOL cap (happening now)
📆 Round 3: 500,000 SOL cap (soon)
21/ Note that vault deposits will be locked until the launch of @Solana <> IBC, at which time these funds will be delegated to validators in this ecosystem.
After this launch, participants will be able to withdraw their restaked assets at any time.
Wen @Picasso_Network LRT? 👀
22/ Tokens that will be initially accepted in the restaking vaults are:
✦ SOL
✦ jitoSOL
✦ mSOL
23/ The team staking competition gamifies restaking on @Picasso_Network and provides an opportunity to earn rewards beyond the restaking yield.
The team staking competition will last 30 days. In this competition, teams will compete to achieve the greatest deposit volumes.
24/ A pool of 17,500,000 PICA is allocated as rewards for vault participants, which will be distributed relative to each user’s stake.
The winning team in the team staking competition will earn additional rewards: 80% of transfer revenue for 30 days.
25/ I expect this whole thing to gain significant traction as we enter the bull and the restaking narrative continues to grow in hype.
A solid thesis around it definitely exists as well.
26/ We followed exactly the strategy I mentioned earlier:
✦ We identified a narrative (Restaking)
✦ We anticipate where it will go (multi-chain)
✦ We have identified a leading play (Picasso)
Now it's up to you to DYOR and position yourself as you see fit.
27/ In a bull market, all you need to change your life is one play.
What you need is a thesis. A plan. Conviction.
I want to empower you to build your thesis. To come up with your plan.
Use threads like this as inspiration. Dive deeper. Build conviction.
WAGMI this time.
That's a wrap! I hope you've found this thread helpful! 🫡
Make sure to follow me @zerokn0wledge_ to stay ahead of the curve on the restaking narrative, @eigencloud, @Picasso_Network and beyond.
Like/Repost of the below post is also highly appreciated! 🙏👇
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