Loading popular tokens...

Marinade PSR Optimizes Solana Staking for Consistent Yield

Marinade’s innovative PSR (Protected Staking Rewards) delegation strategy continues to bear fruit, with Marinade stakers enjoying consistently competitive APY.

July 8, 2024 by Finn Miller

Solana’s fiercely competitive staking wars rage on, with staking providers pulling out all the stops to offer depositors the best possible rewards and user experience. As part of Marinade’s v2 protocol stakers are guaranteed 100% of their rewards, making Marinade an attractive option for SOL stakers.

What are Protected Staking Rewards?

One of the biggest optimization issues faced by automated Solana staking providers is interrupted reward flow. Typically, any changes in node operator commissions or validator downtime results in relative losses for delegators, who would otherwise be earning full rewards.

To get around this, Marinade’s creative v2 protocol introduces a novel delegation strategy. In order to qualify for Marinade’s industry-leading list of 400+ validators and be eligible to receive a share of over 8M staked SOL, validators must now stake a SOL deposit, known as a PSR Bond to insure delegators against potential missed rewards.

Marinade PSR

By safeguarding depositors against loss of rewards due to validator downtime, Marinade is able to consistently provide one of the highest rates of APY among SOL staking providers, with annualized returns of approximately 7.70% APY.

Marinade’s generous rewards and simplified user experience have made it one of the most popular staking platforms in the Solana ecosystem. With over 149,000 mSOL holders, Marinade boasts approximately 47.11% more active accounts than its closest rival Jito, with approximately 101,400 active accounts.

Native Staking Crucial for Institutional Onboarding

One of the largest staking providers in the ecosystem, Marinade forecasts that the market for native staking is estimated to be 20x larger than that of liquid staking. Marinade credits the potential institutional adoption of SOL native staking to three key factors:

  • The capacity to stake locked SOL tokens
  • The elimination of smart contract risk
  • The retention of custody over staked assets

With the prospect of a Solana ETF, led by VanEck's landmark filing, on the horizon, institutional-level SOL staking services are primed to capture significant inflows of capital into the ecosystem.

By providing both the security and simplicity of native staking and the flexibility of liquid staking, Marinade envisions itself as a diverse and composable staking platform that caters to users of all backgrounds.

Solana LST TVL Breaks All-Time High, Again

The Solana LST (Liquid Staking Token) ecosystem continues to thrive. For the 8th consecutive month, the TVL (Total Value Locked) of Solana LSTs has broken new all-time highs, suggesting that the demand for liquid-staked Solana has never been higher.

Solana staking TVL

The surging demand for Solana LSTs is further reinforced by the vast range of incentives available to LST liquidity providers. For example, Marinade’s Season 3 rewards program has allocated 25M MNDE tokens, valued at $2.7M, to users who actively deepen mSOL liquidity on DeFi apps. MNDE rewards for Marinade Season 3 are allocated as follows:

  • 12.5M MNDE tokens will be distributed to liquidity providers via Kamino Finance’s mSOL/SOL vault.

  • 5M MNDE tokens will be distributed to users you strategically loop mSOL/SOL LP tokens through Meteora pools.

  • 7.5M MNDE tokens are reserved for discretionary LP/Partner rewards. These incentives are yet to be announced by the Marinade team.

This gives users and depositors additional benefits, allowing them to earn MNDE tokens, and points within contributing apps, on top of the staking rewards they would typically receive through holding mSOL.

Despite fiery competition with the Solana LST sector Marinade maintains a strong market position, accounting for 22.2% of Solana’s LST market share.

Read More on SolanaFloor:

Why have so many eligible wallets not yet claimed their share of Jupiter ASR?

72.35% of Eligible Wallets Yet to Claim Jupiter ASR, What Does This Mean for JUP?

Latest News

Loading related articles...