Overview

Pye is building bond markets for validators and stakers, enabling validators to offer better rates for long-term lock-ins while providing stakers liquid composable assets they can use in Solana’s DeFi ecosystem.

This comes at a critical time as the validator stack is being commoditized, with proposals like SIMD 123 & 228 pushing the Solana validator ecosystem to mature in order to stay competitive. Validators must adapt by lowering fees, sharing block rewards, and integrating DeFi options to attract delegators.

Pye is not only building bond markets for validators that facilitate long-term SLAs via smart contracts, but also enabling a composable DeFi ecosystem that unlocks the 90% of SOL currently locked in validators and underutilized.

This benefits validators and unlocks capital for use in DeFi, creating opportunities such as:

• Lending integrations
• Restaking deposits
• Fixed-yield bonds
• On-chain OTC
• Yield forwarding
• Stablecoin (CDP issuance)
• Looping
• Launchpad / Lockdrop

Thesis

Pye is built on two core insights:

• Validators are willing to share block rewards with delegators in exchange for longer-term deposits. Validators seek reliable, inelastic TVL, which in turn leads to predictable cash flows.
• Stakers are willing to lock into longer-term contracts if they get the best yield and can access DeFi (restaking, lending, yield splitting).