Marinade Finance Introduces Marinade Native
Marinade Finance, a top Solana protocol, has launched a new service called Marinade Native, which supports direct-to-validator staking of SOL tokens alongside its popular mechanisms for issuing mSOL. This new service eliminates the smart contract risk of swapping SOL for mSOL while still providing an expected yield of around 7%. Marinade already manages $167 million in crypto assets and holds half of the total value locked (TVL) on Solana. However, the protocol insiders believe that further growth can only come from appealing to institutional investors. Marinade Native aims to target this larger market and promote decentralization within staking on Solana.
Main Key Points:
- Marinade Finance introduces Marinade Native, a new service that supports direct-to-validator staking of SOL tokens.
- Marinade Native eliminates the smart contract risk of swapping SOL for mSOL.
- The expected yield of Marinade Native is around 7%.
- Marinade is responsible for $167 million in crypto assets and holds over half of the TVL on Solana.
- The protocol insiders believe that appealing to institutional investors is crucial for further growth.
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Marinade Native: A Safer and More Decentralized Staking Solution
Marinade Native offers a safer and more decentralized staking solution by spreading the staked SOL across an index of top validators instead of just one. This automated staking technique avoids the smart contract risk that was demonstrated during the collapse of FTX, which led to a discount in trading liquid staking tokens. The protocol aims to recover from the TVL rout it suffered during the incident. While Solana’s adoption of liquid staking lags behind Ethereum’s, Marinade hopes to attract institutional investors and increase decentralization within the Solana network.
Marinade Native: Unlocking the Potential of Vesting Contracts
Marinade Native also allows for the utilization of approximately 60 million SOL locked in vesting contracts. These locked assets can earn yield through Marinade Native, providing an additional opportunity for investors. In comparison to Ethereum’s larger DeFi and staking protocols, Marinade acknowledges that the liquid value proposition on Solana is still relatively small. However, with the potential resurgence of DeFi and the appeal to institutional investors, Marinade aims to expand and contribute to the growth of Solana’s staking ecosystem.
Hot Take:
Marinade Finance’s launch of Marinade Native is a significant step towards attracting institutional investors and promoting decentralization within the Solana network. By providing a safer and more decentralized staking solution, Marinade aims to tap into a larger market and increase the adoption of staking on Solana. While the liquid value proposition on Solana may currently be smaller compared to Ethereum, the potential for growth through institutional investors and the utilization of locked assets presents exciting possibilities for Marinade Finance and the Solana ecosystem.
