Marinade Finance, one of the top structures within the Solana framework, is about to enrich its underpinnings by providing staking capabilities for SOL tokens through validators. The groundbreaking initiative coined “Marinade Native” offers an edge by bypassing the usual process of exchanging SOL for liquid staking tokens (LSTs) identified as mSOL – it’s a nifty way to sidestep the smart contract risks while still guaranteeing a plausible yield, according to the developers.
The cherry on top? The new protocol leaves no room for uncertainty in terms of the custodianship of user assets – investors retain autonomy over their SOL tokens. This level of security is irrespective of the fact that the process juxtaposes what is widely considered a yield-imbued tradeable security.
< a href=/?s=Marinade>Marinade has already carved out a decent presence within the crypto space, wielding an impressive $167 million portfolio of digital assets. This baggage weighs heavy as the protocol accounts for over half of the total value locked within Solana’s vaults. But there’s more to the story than what meets the eye. Rumblings from the depths of the protocol suggest that mSOL’s growth might be waning off at minuscule 2% of Solana’s network SOL. The remedy? Unearthing deeper markets fronted by institutions.
Progress is afoot, and Marinade Native is poised to permeate through the heart of institutional markets, vying to further decentralise the staking procedures within the Solana framework. The whispers were confirmed by a prominent figure – Michael Repetny, a core contributor to Marinade.
The concept of assigning SOL tokens directly to validators isn’t a novelty within the ecosystem. Early investors of Solana’s proof-of-stake blockchain tasted its bounties by endorsing the network’s validators with their SOL tokens, effectively banking on their performance.
What is pioneering about Marinade’s native offering though is its apportionment. An index of top validators rather than a solitary individual will be entrusted with staked SOL. This automated staking, Repetny pointed out, spreads the love across a horde of around 130 validators – the wheat separated from the chaff based on performance metrics, ensuring the pursuit doesn’t veer off into the deep end of smart contract risk. This mechanism, coupled with the issue of mSOL, is a hard-hitting combination that stands to reinforce validation processes within Solana’s integrated systems.
Source: Coindesk
