Solana infrastructure project Pye Finance raises $5 million to advance liquid staking innovation

Source: DigitalToday Original Title: Solana-based Staking Marketplace ‘Pye’ Raises $5 Million, Tackling ‘Locked Staking’ Liquidity Original Link: https://www.digitaltoday.co.kr/news/articleView.html?idxno=611242 Solana blockchain infrastructure project Pye Finance has announced a $5 million seed round.

The round was co-led by Variant and a compliant platform’s venture capital arm, with participation from Solana Labs, Nascent, Gemini, and others.

Project Background and Innovation

Pye Finance is building a “time-locked staking marketplace,” targeting roughly 414 million SOL staked on Solana, valued at around $75 billion. The problem with traditional staking is that assets are locked and illiquid during the staking period, making them non-tradable. This limits competition incentives among validators and reduces capital efficiency.

Core Solution

Pye Finance has developed an innovative token-splitting mechanism that divides locked staking positions into two tokens:

• Principal Token: Represents the original SOL principal redeemable at maturity
• Rewards Token: Represents the yield portion earned at maturity

With this design, users can:

• Sell exposure to future rewards
• Use staking positions in other DeFi strategies
• Increase capital liquidity and utilization efficiency

Development Plan

Co-founder Eric Ashdown stated: “Validators are an untapped sector in Web3 finance. We are building financial infrastructure that allows them to operate like asset management firms, offering structured products with predictable returns and transparency.”

The company has completed a private alpha testing phase and plans to launch a private beta in Q1 2026.