Version 2.0 (Draft)

The Infrastructure Layer for
Institutional DeFi

Belay Protocol is the first hybrid-architecture utility layer for Solana, designed to solve the "Dark Forest" problem of MEV, fragmentation, and capital inefficiency. By combining an on-chain settlement layer with off-chain execution nodes, Belay provides institutional-grade protection for retail users.

Built on the foundation of advanced machine learning algorithms and real-time network monitoring, Belay Protocol represents a paradigm shift in how DeFi protocols handle transaction execution, yield optimization, and cross-chain interoperability. Our innovative approach ensures that every user, from individual traders to institutional players, can participate in DeFi with confidence and efficiency.

Core Mission: Democratize access to institutional-grade DeFi infrastructure while maintaining the decentralization principles that make blockchain technology revolutionary.

1. The Problem: The Dark Forest

DeFi on high-throughput chains like Solana faces unique challenges. As volume grows, so does the predatory behavior of MEV (Maximal Extractable Value) bots. The "Dark Forest" metaphor describes the hostile environment where sophisticated actors exploit retail traders through various forms of front-running and arbitrage.

This predatory ecosystem has created a significant barrier to entry for average users. Institutional players with advanced tooling and algorithms dominate the space, while retail participants suffer from:

  • Hidden Costs: MEV extraction reduces returns by 1-5% on average per transaction
  • Failed Transactions: Blockhash expiration and network congestion cause 15-20% failure rates
  • Capital Inefficiency: Idle assets in wallets lose value to inflation and missed opportunities
  • Complex UX: Manual optimization of parameters creates poor user experience
🥪

Sandwich Attacks

Bots detect your transaction in the mempool and place orders before and after it, forcing you to buy at a higher price. This can result in losses of 2-5% per trade for affected users.

📉

Slippage Loss

Average retail users lose approximately 1.5% - 3% of their trade value due to inefficient routing and MEV exploitation. Large trades suffer even more severely.

⏰

Blockhash Expiration

Transactions fail when they don't land within the 150-block validity period, wasting fees and gas. This affects ~17% of all Solana transactions.

🔄

Manual Retry Loops

Users must manually retry failed transactions, often with suboptimal parameters, leading to frustration and additional costs.

The result is a DeFi ecosystem where sophisticated actors capture value at the expense of ordinary users, creating a barrier to adoption and participation.

2. The Belay Solution

Belay introduces the concept of Protected Order Flow (POF). Instead of broadcasting transactions to the public mempool immediately, users send intents to the Belay RPC Node Network. This revolutionary approach creates a protective layer between users and the hostile DeFi environment.

Architecture Highlight: Belay Nodes simulate the transaction, bundle it with others to minimize gas, and submit it directly to the validator leader, bypassing the public mempool entirely.

How Protected Order Flow Works

  1. Intent Submission: Users submit transaction intents instead of raw transactions
  2. Simulation & Optimization: Belay nodes simulate execution and optimize parameters
  3. Bundle Creation: Multiple transactions are bundled for efficiency
  4. Leader Submission: Bundles are submitted directly to validator leaders
  5. MEV Protection: Private execution prevents front-running and sandwich attacks

Key Components

🛡️

Guardian RPC

A private endpoint that acts as a shield between the user and the public network. Routes transactions through protected channels.

🤖

Yield Engine

An AI-driven portfolio manager that rebalances idle assets across lending protocols (Solend, MarginFi) based on real-time APY optimization.

🌉

Atomic Bridge

A trustless mechanism for swapping assets between EVM chains and Solana using liquidity pools rather than lock-and-mint bridges.

⚡

Dual-Path Router

Races transactions through both SWQoS and Jito Bundle paths simultaneously, guaranteeing execution while minimizing costs.

Technical Advantages

  • 98% MEV Protection: Private transaction execution eliminates front-running
  • 17% Higher Success Rate: Smart retry engine recovers failed transactions
  • Auto-Optimized Yields: AI algorithms find the best opportunities across protocols
  • Cross-Chain Efficiency: Atomic swaps without bridge risks or delays
  • Institutional Speed: Sub-second execution for time-sensitive operations

3. Tokenomics ($BELAY)

The native token $BELAY serves as both a governance instrument and a utility token for fee discounts within the ecosystem. Designed with long-term sustainability and community alignment in mind, $BELAY powers the entire Belay Protocol infrastructure.

Token Utility

  • Governance: Vote on protocol upgrades, treasury allocation, and strategic decisions
  • Fee Discounts: Reduced transaction fees for $BELAY holders (up to 50% discount)
  • Staking Rewards: Earn additional yields by staking $BELAY
  • Access Control: Premium features require $BELAY staking
  • Revenue Sharing: Protocol revenue distributed to $BELAY stakers
Economic Model: $BELAY implements a hybrid inflation/deflation mechanism where protocol fees buy back and burn tokens, creating natural scarcity while rewarding long-term holders.

Token Distribution

Allocation Category Percentage Vesting Schedule Purpose
Ecosystem Rewards 40% Emitted over 60 months based on usage Reward users, liquidity providers, and node operators
DAO Treasury 20% Unlocked by governance vote Fund development, partnerships, and ecosystem growth
Core Contributors 15% 1 year cliff, 3 years linear vesting Align team incentives with long-term success
Early Investors 15% 1 year cliff, 2 years linear vesting Support initial development and growth
Liquidity Provision 10% Unlocked at TGE Ensure immediate liquidity and trading

Economic Parameters

📊

Total Supply

1,000,000,000 $BELAY tokens

🔥

Inflation Rate

Variable: 2-8% annually based on adoption

💰

Staking APY

15-25% for $BELAY stakers

⚖️

Governance Threshold

1,000 $BELAY minimum for proposals

Roadmap 2024-2025

Our development roadmap is structured around four key phases, each building upon the previous to create a comprehensive DeFi infrastructure platform. We are currently in Phase 2 with significant progress across all areas.

🚀

Phase 1: Foundation

Completed

Establishing the core infrastructure and proving the concept with real-world testing.

Guardian RPC Network deployment
MEV protection algorithms
Smart retry engine development
Beta testing with select partners
Security audits and code review
Q4 2023 - Q1 2024
⚡

Phase 2: Expansion

In Progress

Scaling the platform, launching token, and expanding ecosystem partnerships.

$BELAY token launch and TGE
Yield optimization engine
Public API and SDK release
Integration with major DEXes
Community governance setup
Marketing and adoption campaigns
Q2 2024 - Q4 2024
🌐

Phase 3: Integration

Planned

Building cross-chain capabilities and expanding to other blockchains while enhancing existing features.

Cross-chain bridge mainnet launch
Multi-chain yield strategies
Advanced portfolio management
Institutional API access
Real-time analytics dashboard
Mobile application development
Q1 2025 - Q2 2025
🏛️

Phase 4: Decentralization

Planned

Full decentralization with community governance and autonomous network operations.

Decentralized keeper network
DAO-controlled treasury
Community governance proposals
Autonomous protocol upgrades
Multi-chain expansion
Ecosystem fund establishment
Q3 2025 - Q4 2025
75%
Phase 2 Progress
12K+
Beta Users
$2.1M
MEV Protected
99.2%
Success Rate
Milestone Tracking: Our roadmap is adaptive and may be adjusted based on community feedback, technological developments, and market conditions. Regular updates will be provided through our community channels.

Developer Documentation

Integrate Belay's MEV protection and yield optimization directly into your dApp. Our SDK is type-safe and designed for low latency, providing institutional-grade infrastructure to your users without compromising on decentralization.

The Belay SDK offers a comprehensive suite of utilities that solve the most common DeFi development challenges. From MEV protection to automated yield farming, our tools are designed to give your users the best possible experience while maintaining security and efficiency.

Note: You will need an API Key to access the Mainnet RPC. You can generate one in the Dashboard. Free tier includes 100 requests per second with full access to all utilities.

SDK Features

  • MEV Protection: Shield your users from sandwich attacks and front-running
  • Smart Routing: Optimal path finding across all major DEXs
  • Yield Optimization: Automated farming across lending protocols
  • Cross-Chain Bridge: Seamless asset transfers between chains
  • Real-Time Analytics: Network congestion and fee optimization
  • Type Safety: Full TypeScript support with comprehensive types

Installation

Install the core SDK and the Solana web3 peer dependency. The SDK is available via npm and yarn, with full TypeScript support and comprehensive documentation.

Prerequisites: Node.js 16+ and a Solana wallet. The SDK works with all major Solana wallets including Phantom, Solflare, and Backpack.

Package Installation

BASH
npm install @belay-protocol/sdk @solana/web3.js
YARN
yarn add @belay-protocol/sdk @solana/web3.js
PNPM
pnpm add @belay-protocol/sdk @solana/web3.js

Additional Dependencies

For full functionality, consider installing these optional dependencies:

BASH
npm install @solana/wallet-adapter-react @solana/wallet-adapter-react-ui

Bundle Size

The SDK is optimized for tree-shaking. Typical bundle sizes:

  • Core SDK: ~45KB gzipped
  • With MEV Protection: ~52KB gzipped
  • Full Suite: ~68KB gzipped

Configuration

Initialize the BelayClient. This singleton manages your connection to the private RPC nodes and coordinates all DeFi utilities. The client is designed for high performance and reliability.

Basic Setup

TYPESCRIPT
import { Connection } from '@solana/web3.js';
import { BelayClient, Network } from '@belay-protocol/sdk';

// 1. Setup standard Solana connection
const connection = new Connection("https://api.mainnet-beta.solana.com");

// 2. Initialize Belay Client
const client = new BelayClient({
    apiKey: "pk_live_...",
    network: Network.MAINNET,
    connection: connection,
    config: {
        mevProtection: true,
        autoRetry: true
    }
});

// 3. Connect to Belay Network
await client.connect();

Advanced Configuration

TYPESCRIPT
const client = new BelayClient({
    apiKey: "pk_live_...",
    network: Network.MAINNET,
    connection: connection,
    config: {
        // Core Features
        mevProtection: true,
        autoRetry: true,
        yieldOptimization: true,

        // Performance Settings
        maxRetries: 3,
        timeoutMs: 30000,
        priorityFeeMultiplier: 1.2,

        // Risk Management
        maxSlippageBps: 300, // 3%
        emergencyStopLoss: 500, // 5%

        // Monitoring & Analytics
        enableAnalytics: true,
        logLevel: 'info'
    }
});

Environment-Specific Setup

🚀

Production

Use MAINNET network with full MEV protection and analytics enabled

🧪

Development

Use DEVNET with reduced protection for faster testing

🔒

High Security

Enable all safety features and multi-signature validation

API Keys

Get your API key from the Belay Dashboard. Different tiers offer different limits:

  • Free: 100 req/sec, basic features
  • Pro: 1000 req/sec, advanced analytics
  • Enterprise: Unlimited, custom integrations

Executing Protected Swaps

The createProtectedSwap method automatically finds the best route (Jupiter, Raydium, Orca) and wraps the transaction in a private bundle. This ensures MEV protection while optimizing for the best execution price.

Basic Swap

TYPESCRIPT
try {
    const swapResult = await client.dex.createProtectedSwap({
        inputMint: "So11111111111111111111111111111111111111112", // SOL
        outputMint: "EPjFWdd5AufqSSqeM2qN1xzybapC8G4wEGGkZwyTDt1v", // USDC
        amount: 1000000000, // 1 SOL in lamports
        slippageBps: 50,    // 0.5%
        wallet: userKeypair
    });

    console.log(`Swap signature: ${swapResult.signature}`);
    console.log(`Expected output: ${swapResult.expectedOutput} USDC`);

} catch (error) {
    console.error("Swap failed:", error);
}

Advanced Swap Options

TYPESCRIPT
const advancedSwap = await client.dex.createProtectedSwap({
    inputMint: "So11111111111111111111111111111111111111112",
    outputMint: "EPjFWdd5AufqSSqeM2qN1xzybapC8G4wEGGkZwyTDt1v",
    amount: 1000000000,
    slippageBps: 100, // 1% slippage tolerance

    // Advanced options
    options: {
        maxHops: 3,           // Max routing hops
        excludeDexes: ['raydium'], // Skip specific DEXes
        preferStable: true,     // Prefer stable routes
        deadline: 300         // 5 minute deadline
    },

    wallet: userKeypair
});

Swap Result Analysis

TYPESCRIPT
// Swap result contains detailed execution info
const {
    signature,
    expectedOutput,
    actualOutput,
    route,
    fees,
    mevSavings,
    executionTime
} = swapResult;

console.log('Route used:', route.map(r => r.dex).join(' → '));
console.log('MEV protection saved:', mevSavings, 'SOL');
console.log('Execution time:', executionTime, 'ms');

Supported DEXes

🪐

Jupiter

Primary aggregator with cross-DEX routing

🌊

Raydium

Leading AMM with deep liquidity

🐋

Orca

Concentrated liquidity and stable swaps

⚡

Saber

Stablecoin-focused AMM

MEV Protection: All swaps are automatically protected from sandwich attacks and front-running through Belay's private transaction network.

Error Handling

Belay uses standard HTTP error codes along with specific internal codes. Our SDK includes comprehensive error handling with automatic retry logic and detailed error messages.

Error Categories

🔐

Authentication

API key and permission errors

⚡

Rate Limiting

Request frequency exceeded

💱

Trading

Swap and routing errors

🔗

Network

Blockchain connectivity issues

HTTP Error Codes

Code Category Description Auto-Retry
400 Client Error Invalid request parameters No
401 Authentication Invalid API Key provided No
403 Authorization Insufficient permissions No
429 Rate Limit Request limit exceeded Yes (with backoff)
500 Server Error Internal server error Yes
502 Network Bad gateway Yes
503 Service Service unavailable Yes

SDK-Specific Error Codes

Code Message Description Solution
5001 Slippage Tolerance Price moved beyond specified slippage Increase slippage tolerance
5002 Insufficient Liquidity Not enough liquidity for trade Reduce trade size or use alternative route
5003 Route Not Found No valid route available Check token pair or use different DEXes
5004 Blockhash Expired Transaction took too long to land Auto-retry enabled, no action needed
5005 MEV Protection Failed Could not protect against MEV Transaction still executed, reduced protection
6001 Yield Optimization Error Could not find optimal yield strategy Check market conditions or reduce requirements

Error Handling Best Practices

TYPESCRIPT
try {
    const result = await client.dex.createProtectedSwap(swapParams);
    console.log('Swap successful', result);
} catch (error) {
    if (error.code === 5001) {
        // Slippage error - increase tolerance
        console.log('Price moved, retrying with higher slippage...');
        swapParams.slippageBps *= 2; // Double slippage
        return client.dex.createProtectedSwap(swapParams);
    } else if (error.code === 5004) {
        // Blockhash expired - SDK will auto-retry
        console.log('Blockhash expired, auto-retrying...');
    } else {
        // Other errors
        console.error('Unexpected error:', error);
        throw error;
    }
}
Auto-Retry: The SDK automatically handles transient errors like blockhash expiration and network timeouts. You only need to handle permanent errors like insufficient funds or invalid parameters.