Solomon Labs is a decentralized finance (DeFi) protocol operating on the Solana blockchain. The project's primary product is USDv, a yield-bearing stablecoin designed to be pegged to the U.S. dollar while generating returns for its holders. The protocol launched in November 2025 after a public sale on the MetaDAO platform that raised over $102 million in committed capital. ^{[1] [2]}​

Overview

Solomon Labs aims to create what it calls "Solana-native dollar rails" to make stablecoin capital productive within the DeFi ecosystem. The project’s core offering, the USDv stablecoin, is designed to provide holders with a native yield without requiring active management like staking or liquidity provision. This yield is generated through a market-neutral basis trading strategy executed by the protocol's "basis engine." Solomon Labs emphasizes transparency through features like on-chain verification of yield payouts and the use of an institutional-grade custodian for its reserve assets. ^[2]​

The project's philosophy for its initial fundraising was to avoid private sales or insider deals, with all participants contributing on the same terms to establish the on-chain price for its native token, SOLO. ^[1] The launch was noted by the official Solana social media account, which highlighted the significant capital raised as an indicator of the future of capital formation on the network. ^[1]

The native token of the protocol, SOLO, is intended to provide holders with governance rights and a share of the protocol's revenue. ^[3]​

History

The development of Solomon Labs' core technology took place over an extended period before its public launch. According to the project, its "basis engine" and Solana smart contracts were operational in a private beta with real users for approximately one year, beginning around November 2024. ^[1]​

Initial Coin Offering (ICO)

In November 2025, Solomon Labs conducted its ICO for the SOLO token on the MetaDAO launchpad. The public sale concluded on November 18, 2025, successfully raising $102,932,673 from 6,603 unique contributors. ^[1] The project framed its fundraising model as a transparent and equitable method for launching core crypto infrastructure. ^[1] The SOLO token was scheduled to go live on-chain later that day, with claims and refunds managed by MetaDAO. ^[1] Following the ICO, Solomon Labs opened a waitlist for its public beta, allowing users to deposit stablecoins to earn the advertised yield. ^[2]​

Launch Controversy

During the public sale, allegations of market manipulation surfaced within the community. These claims were linked to a prediction market on the platform Polymarket concerning the total amount that would be raised in the Solomon ICO. Reports indicated that a Distributed Denial-of-Service (DDoS) attack may have targeted Polymarket, and one wallet address reportedly earned over $260,000 by betting on the outcome of the raise. ^[4]​

Technology and Product

Solomon Labs is built on the Solana blockchain and centers around its flagship product, the USDv stablecoin. The underlying technology that powers USDv is referred to as the "basis engine." ^[1]​

USDv Stablecoin

USDv is a yield-bearing stablecoin designed to maintain a 1:1 peg with the U.S. dollar. It is also engineered to be a "composable dollar," meaning it can be integrated and utilized across other DeFi protocols, such as lending platforms and decentralized exchanges, without losing its native yield-generating properties. ^{[4] [3]}​

Yield Generation Mechanism

The yield for USDv holders is generated through a delta-neutral basis trading strategy. This market-neutral approach is designed to generate returns regardless of the direction of the broader crypto market. The process typically involves two simultaneous positions:

1. Long Spot Position: The protocol uses its reserve assets to purchase a crypto asset, such as SOL, on the spot market.
2. Short Futures Position: At the same time, the protocol opens an equivalent short position for the same asset in the perpetual futures market (e.g., SOL-PERP).

This strategy neutralizes exposure to the price volatility of the underlying asset. The primary source of yield is the funding rate, a mechanism used in perpetual futures markets to keep the futures price tethered to the spot price. Historically, funding rates have often been positive, meaning traders with long positions pay a fee to traders with short positions. Solomon Labs' strategy positions the protocol to collect these funding rate payments, which are then distributed as yield to USDv holders. The protocol’s advertised Annual Percentage Yield (APY) at the time of its public beta launch was approximately 20.9%, though this rate is variable and dependent on market conditions. ^{[2] [3]}​

Asset Custody and Transparency

The assets backing USDv are held with Ceffu, an institutional-grade custody solution that was spun off from Binance. This partnership is intended to enhance the security of the stablecoin's reserves. Solomon Labs also offers a "Proof of Yield" feature that allows users to view cumulative payouts and verify the data on-chain, promoting transparency of the protocol's operations and earnings. ^[2]​

SOLO Token

SOLO is the native SPL (Solana Program Library) token of the Solomon Labs protocol. It serves as both a governance and utility token within the ecosystem. ^[3]​

Token Details:

• Name: Solomon
• Ticker: SOLO
• Blockchain: Solana
• Contract Address: SoLo9oxzLDpcq1dpqAgMwgce5WqkRDtNXK7EPnbmeta

Tokenomics

The SOLO token has a maximum supply of 25,800,000. As of November 2025, the total supply was approximately 25.8 million, with a circulating supply of around 12.9 million SOLO. An allocation of 12,900,000 SOLO, representing 50% of the maximum supply, is designated for the team and held in the wallet address 9a9KPYqsDEoRvk4Namd65J7yGz2aPKvKPtt3TaYXgY55. ^[4]​

Utility

The SOLO token is designed to have two primary functions within the Solomon Labs ecosystem:

• Governance: SOLO holders can participate in protocol governance by voting on key proposals. These may include the implementation of new yield strategies, adjustments to protocol fees, and the management of the treasury.
• Fee Sharing: The protocol's model includes the potential for distributing a portion of the revenue generated from its trading strategies to users who stake their SOLO tokens.

The SOLO token's smart contract has its mint authority revoked, meaning no new tokens can be created beyond the maximum supply. It also has a 0% tax on buys and sells. ^[3]​

Market Performance

The SOLO token began trading on decentralized exchanges following the conclusion of its ICO on November 18, 2025. On its first day of trading, it reached an all-time high of 0.8397. The primary venues for trading the SOLO token are Solana-based DEXs, with Meteora hosting the most active trading pairs, including SOLO/USDC and SOLO/SOL. ^[4]​

Ecosystem and Partnerships

Solomon Labs operates within the Solana ecosystem and has established key relationships to support its launch and operations.

• MetaDAO: Solomon Labs utilized MetaDAO as the launchpad platform for its ICO. MetaDAO managed the technical aspects of the public sale, including processing commitments and facilitating the subsequent token claim process for contributors. ^{[4] [1]}
• Solana: The protocol is built entirely on the Solana blockchain. The official Solana foundation showed public support for the project by highlighting its successful $100M+ capital raise on its official X account. ^[1]
• Ceffu: To secure the reserves backing the USDv stablecoin, Solomon Labs partnered with Ceffu. The use of an institutional custodian is a measure intended to provide greater security and trustworthiness for the assets held by the protocol. ^[2]

Team

The founding team of Solomon Labs has not been publicly disclosed with their real-world identities. The team is described as "lightly doxxed," suggesting the use of pseudonyms, which is a common practice in the DeFi space. ^[3] One of the publicly acknowledged figures involved in building the protocol is known by the pseudonym on X. ^[1]​

Risks and Challenges

As a DeFi protocol offering a yield-bearing stablecoin, Solomon Labs faces several inherent risks and challenges.

• Yield Dependency: The APY for USDv is entirely dependent on market funding rates for perpetual futures. During bearish or neutral market conditions, these rates can decrease significantly, become zero, or even turn negative. A sustained period of negative funding rates would result in the protocol's strategy generating losses instead of yield. ^[2]
• Strategy and Market Risks: While delta-neutral strategies are designed to be market-neutral, they are not risk-free. Potential risks include liquidation of positions during extreme market volatility and counterparty risk associated with the stability and security of the exchanges where futures positions are held. ^[3]
• Smart Contract Risk: Like any DeFi protocol, Solomon Labs is subject to the risk of bugs or vulnerabilities in its smart contracts that could be exploited by malicious actors.
• Custodial Risk: The use of a centralized, third-party custodian like Ceffu introduces counterparty risk. While it can enhance security against certain threats, it also creates a centralized point of failure dependent on the custodian's own security and solvency.
• Regulatory Scrutiny: Yield-bearing financial products, particularly stablecoins, are under increasing scrutiny from financial regulators worldwide. Future regulatory changes could impact the legality and operations of Solomon Labs. ^[2]