- Marinade Finance introduces Marinade Native staking service for SOL.
- The new service aims to attract institutional investors.
- The staking service could solve some of Solana’s woes.
Solana has been on a rocky road so far this year. However, its ecosystem has not stopped expanding. The latest development comes from Marinade Finance, Solana’s largest DeFi protocol. Marinade Native will support direct-to-validator staking of SOL.
This new service supports direct-to-validator staking of SOL tokens, a development that could significantly boost Solana’s ecosystem. By attracting institutional investors and decentralizing staking on Solana, Marinade Native could solve some of the ongoing challenges SOL faces.
Marinade Finance on Decentralizing Solana
On Tuesday, July 19, Marinade Finance announced the launch of Marinade Native, a service that supports direct-to-validator staking of SOL tokens. This new service eliminates the smart contract risk associated with swapping SOL for mSOL, a liquid staking token, while maintaining an expected yield of around 7%.
Marinade Finance also says the new system can help decentralize Solana. Instead of staking tokens through a single entity or a small group of entities, tokens can be staked directly to a wide range of validators.
This approach spreads the staked SOL across an index of top validators rather than just one, a technique known as automated staking. By distributing the staking power among many validators, the network becomes more decentralized, as no single validator has too much control or influence over the network.
Boosting Institutional Interest in Solana
As of now, Marinade is responsible for $167 million in crypto assets, which is just over half of the total value locked (TVL) on Solana. Still, they hope to unlock further growth by attracting institutional investors who are hesitant to handle liquid staking tokens.
Institutional investors often hesitate to handle liquid staking tokens due to the associated risks. Marinade Finance provides a safer and more attractive option for these investors by offering a service that supports direct-to-validator staking. Moreover, a fresh influx of institutional investment in Solana would contribute to the network’s decentralization.
On the Flipside
- It is important to note that yield from staking is denominated in SOL. As such, the real yield will vary based on SOL’s performance.
- Marinade Finance will continue to offer mSOL staking in addition to its Native offering.
Why This Matters
The introduction of Marinade Native is a significant development for Solana. It offers a new way to stake SOL tokens, potentially attracting a larger market and fostering more decentralization within staking on Solana.
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