Solana Sidechain Sidecars

Where Solana Stake Validates Other Chains, Execution Layers & Cross-Chain Services

14
Protocols Studied
$1.17B
Combined TVL
$2.5B
Annual MEV Distribution
10
Live on Mainnet
Critical Finding: Most "cross-chain SVM" protocols use SVM execution but settle to other chains (Ethereum, Bitcoin) with separate validator sets. Only restaking protocols (Jito NCN, Solayer) and Picasso IBC actually use SOL stake to secure additional services. Picasso IBC is the ONLY protocol where Solana stake directly validates external L1s (Cosmos/Ethereum/Polkadot).

Cross-Cutting Concepts

Solana Stake Usage Models

Direct L1 Extension: MagicBlock, Neon EVM — Solana validators validate all txs, settlement to Solana

Separate Chain with SOL Stake: Sonic, Picasso IBC — Independent consensus, SOL stake provides security

Restaking: Jito NCN, Solayer — Reuse SOL stake to secure additional services beyond mainnet

Separate Chains, No SOL Stake: Eclipse, SOON, Atlas — Use SVM execution, settle to other chains, independent validator sets

Revenue Models

Token Inflation: Sonic 20% supply (480M SONIC), SOON 3% annual

Commission-Based: Neon 10% default, Sonic 0-20% delegation

MEV-Enhanced: Jito +1.2-1.8% APY, Solayer 7.6-8% total

Session/Settlement Fees: MagicBlock ephemeral, Eclipse sequencing

Passive Liquid Restaking: Fragmetric LRT, no validator operation

Entry Barriers

Very Low: Fragmetric/Solayer (liquid restaking, no minimum stake)

Low: Neon EVM (proxy software, ~200 SOL/month operational)

Medium: Jito NCN (NCN-dependent, performance criteria), MagicBlock (evolving model)

High: Sonic (500K SONIC stake, $500-3K/month opex)

Very High: Eclipse (concentrated sequencer set, undisclosed requirements)

Cross-Chain Restaking Protocols

Protocols that reuse Solana stake to secure additional services beyond mainnet. Combined TVL: $1.173B (May 2026).

🔗

Jito NCNLive

Orthogonal: Multi-NCN framework, $2.5B annual MEV distribution via TipRouter, 95%+ validator adoption

TVL: $227M across 9 VRTs | Revenue: ~7% APY + 1.2-1.8% MEV premium | Live NCNs: TipRouter (MEV), Switchboard (oracles)

Multi-asset support, customizable slashing, $30M+ annual network revenue

💧

SolayerLive

Orthogonal: Largest Solana restaking ($346M TVL), endogenous AVS focus (on-chain dApps via swQoS)

Revenue: 7.6-8.12% APY verified | Entry: Any amount SOL/LST, zero fees | Non-custodial, performance-based AVS selection

Emphasizes Solana-native dApps vs EigenLayer's off-chain services model

🌉

Picasso IBCLive

Orthogonal: ONLY protocol directly securing external chains via Solana stake, IBC light client validation

Validates: Cosmos, Ethereum, Polkadot | Bond: 25 SOL | Revenue: 40% of cross-chain transfer fees

Direct external L1 validation (not just Solana-native services)

🧩

FragmetricLive

Orthogonal: First to solve multi-reward distribution via SPL token transfer hooks, $300M+ TVL

Mechanism: mSOL/jitoSOL/bSOL → fragSOL LRT | Revenue: SOL staking + MEV + NCN yields | Entry: No minimum, passive

80K+ participants, 100% revenue → FRAG buybacks, Jito/Solayer/Cambrian integration

🛠️

CambrianLive

Orthogonal: Modular security layer SDK for NCN/AVS development, EigenLayer-inspired but Solana-adapted

Type: Developer infrastructure, not standalone restaking protocol | Integration: Works with Jito, Solayer, Fragmetric

Enables custom NCN/AVS creation with granular security parameters

Execution Layer Sidechains

SVM-based execution environments extending Solana or other L1s. Only MagicBlock, Sonic, Neon use SOL stake for validation.

Live on Mainnet (Using SOL Stake)

MagicBlockLive

Orthogonal: On-demand temporary execution, 10-50ms latency, near-zero tx cost during sessions

Architecture: Ephemeral SVM validators (off-chain) → settle to Solana | Use cases: FlashTrade (DeFi), Supersize.gg (gaming), dTelecom

Validators: Lightweight TEE instances (Asia/EU/US operational)

🎮

Sonic SVMLive

Orthogonal: 30-40x Solana L1 throughput, HyperGrid atomic settlement, gaming-optimized

Token: 2.4B SONIC (20% to validators) | Revenue: 21.27% APR verified | Stake: 500K SONIC (proposed 50K reduction)

Dual model: HyperGrid validators + HyperFuse Guardian nodes

🔷

Neon EVMLive

Orthogonal: Full Solidity/Web3/ERC-20 on Solana mainnet, no separate chain

Validator: Whitelisted proxy operators (→ permissionless) | Revenue: 10% default commission | Entry: ~200 SOL/month operational

No slashing (operational cost risk only), Solana wallet support (Jan 2025)

Live on Mainnet (NOT Using SOL Stake)

🌐

EclipseDeclining

Orthogonal: First Ethereum L2 using SVM execution, Celestia DA, RISC Zero fraud proofs

Status: TVL ~$1.4M (down 95%), restructuring (65% staff cut) | Validator: Concentrated sequencer set (undisclosed requirements)

Competition from SOON/Atlas, loss of Solana-on-Ethereum monopoly

🚀

SOON NetworkAlpha

Orthogonal: First decoupled SVM rollup, 50ms blocks, 3% inflation, configurable L1 settlement

Validator: $SOON token staking (separate from SOL) | Settlement: Ethereum (expandable to other L1s) | Funding: $22M raised

Direct Eclipse competitor for Ethereum L2 market

📊

AtlasPrivate Testnet

Orthogonal: 50ms state merklization slots, verifiable finance optimization, Ethereum L2

Status: Private testnet, validator economics undisclosed | Expected: Separate token for validator staking

Optimized for DeFi and traditional finance transparency

Yona NetworkTestnet

Orthogonal: First ZK rollup on Bitcoin using SVM execution

Validator: EigenLayer AVS (Ethereum restaking, NOT Solana stake) | Settlement: Bitcoin | Status: Mainnet roadmap 2026

Uses SVM execution but secured by Ethereum restaking

🎲

ZinkPermissioned

Orthogonal: Gaming L1 (not L2), permissioned validator set, 18-24mo decentralization timeline

Anchor: Star Atlas game | Validator: Invitation-only, 5% to DAO validator | Status: Mainnet launched (gradual decentralization)

Independent L1 using SVM, separate validator set

Patterns & Comparisons

Revenue Comparison (Verified Data, May 2026)

Protocol APY/APR Model Entry Barrier Status
Sonic 21.27% Token staking (SONIC) High (500K SONIC) Live
Solayer 7.6-8.12% Liquid restaking (sSOL) Very Low (any amount) Live
Jito 7-9% Base + MEV premium Medium (NCN-dependent) Live
Fragmetric SOL+MEV+NCN LRT aggregator Very Low (passive) Live
Neon EVM 10% commission Proxy operator Low (~200 SOL/mo) Live
SOON 3% inflation Token staking (SOON) Medium (undisclosed) Alpha
MagicBlock Undisclosed Session fees Medium (evolving) Live
Eclipse Undisclosed Sequencer fees Very High (concentrated) Declining

Cross-Chain Validation Reality

Category Protocols How SOL Stake is Used
Direct External Chain Validation Picasso IBC 25 SOL bond to validate Cosmos/Ethereum/Polkadot via IBC light clients, 40% transfer fees
Solana-Native Services Only Jito NCN, Solayer, Fragmetric Oracles, MEV distribution, keeper networks, on-chain dApps — services FOR Solana, not external L1 validation
Separate Validator Sets (NOT SOL) Eclipse, SOON, Atlas, Yona, Zink Use SVM execution but settle to other chains (Ethereum, Bitcoin) with independent validator sets using separate tokens

Shared Infrastructure Components

Solana Validator Hardware (Base Layer)

Used by: Jito NCN operators, Solayer validators, Neon proxies (via RPC), MagicBlock ephemeral validators

Specs: 12+ cores, 256GB RAM, 2TB NVMe, 1 Gbps | NEW (May 2026): ASN <25% network stake, data center <15% concentration

MEV Infrastructure

Used by: Jito NCN (TipRouter 6% of MEV tips), Solayer (MEV-boosted yields), validators (1.2-1.8% premium)

Impact: $674M paid out (2024), ~50% of Solana REV, $2.5B annual via TipRouter

Liquid Staking Tokens (LSTs)

Used by: Fragmetric (mSOL/jitoSOL/bSOL → fragSOL), Picasso IBC (restaked LSTs), Solayer (sSOL)

Benefit: Maintain liquidity while restaking, DeFi composability

Token Extensions (SPL)

Used by: Fragmetric (multi-reward distribution), Jito VRTs (NCN-specific rewards)

Innovation: Separate claimable rewards via transfer hooks

Slashing Mechanics

Category Protocols Slashing Conditions
Active Slashing (Live) Sonic, MagicBlock, Jito NCN, Picasso IBC Malicious activity, fraud proof failures, invalid cross-chain proofs | Delegator stake at risk
NO Slashing Neon EVM, Fragmetric, Solayer Operational cost risk only (Neon), delegated models with indirect risk via underlying protocols
Planned / Undisclosed Eclipse, Solana mainnet Ethereum L2 model (likely slashing planned), SIMD-0204 in progress (no active slashing yet as of May 2026)

Strategic Insights

For Existing Solana Validators

Best Opportunities (May 2026)

1. Jito NCN: 95%+ adoption, $2.5B MEV distribution, multi-NCN support, verified earnings (~7% + 1.2-1.8% MEV)

2. Solayer: Low barrier, 7.6-8% APY, flexible staking, zero fees

3. Neon EVM: Low overhead, 10% commission, permissionless transition upcoming

Avoid / Caution

Eclipse: TVL down 95%, restructuring, unclear validator path

MagicBlock: Evolving revenue model, unclear stake requirements

SOON/Atlas/Yona: Separate validator sets (not SOL stake integration)

For Liquid Stakers / Passive Participants

Best Opportunities

1. Fragmetric fragSOL: $300M+ TVL, multi-protocol aggregation, SPL token innovation

2. Solayer sSOL: Largest restaking TVL ($346M), 7.6-8% APY, zero fees

3. Jito JitoSOL: 95%+ validator adoption, MEV-boosted, TipRouter integration

Cross-Chain Potential

Live Today

Picasso IBC: Only protocol using SOL stake to directly validate external chains (Cosmos/Ethereum/Polkadot)

Future Potential

Jito NCN: Architecture supports multi-chain NCNs (not yet deployed)

Solayer: Exogenous AVS (currently bridges INTO Solana, not OUT to secure other L1s)

Marketing vs Reality

Most "cross-chain" claims refer to bridged assets INTO Solana, not Solana validators securing other chains

SVM L2s (Eclipse, SOON, Atlas) use separate validator sets despite SVM execution