DeFi

DeFi protocol Marinade seeks to reclaim share of $51 billion Solana staking market as competition heats up – DL News

Published

7 months ago

19 June, 2024

CoinFlix Staff

DeFi protocol Marinade seeks to reclaim share of $51 billion Solana staking market as competition heats up – DL News

Competition in the Solana staking market is intensifying.
Marinade plans to launch a new auction marketplace for validators and stakers.
The market could help it compete with rival staking protocol Jito.

There is a war going on in the Solana Stake.

Marinade, the first Solana staking protocol to launch in 2021, once dominated the market with over $2 billion in deposits.

But in recent months, rival staking protocol Jito has been eating Marinade’s lunch. Marinade’s deposits fell by almost 50%, while Jito’s high rewards helped it reach over $1.5 billion, according to DefiLlama. data.

Now Marinade is fighting back.

This involves creating a participating auction market, or SAM. This will give running validators the opportunity to share additional revenue with stakers and bid on each other to provide stakers with better returns.

Solana’s staking software does not allow providers to use other revenue streams to increase the returns they provide to stakers. Many are forced to offer punters 0% commission with no other way to compete.

“Over 400 validators charge 0% commission on inflation rewards,” said Michael Repetny, one of Marinade’s top contributors. DL News. “We expect there to be an additional $8 million in demand for the Marinade auction system.”

The new stakes market could increase staking rewards to 9% – in line with what Jito is proposing – and create more competition between validators in charge.

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The hope is that Marinade’s stake auction marketplace will attract independent validators from elsewhere in the Solana ecosystem, giving them a platform to compete against each other, as well as established providers like Jito.

The Solana Staking Market

Staking Solana is a big deal.

More than 81% of all SOLs on the network – some $51 billion – is at stake, compared to only 27% of ETH at its rival Ethereum.

Although there are over 50 different Solana staking providers and hundreds of independent validators, the market is dominated by two players: Marinade and Jito.

Staking providers run validators, software instances that process transactions on blockchains, allow Solana users to stake their SOL to help secure the network and earn rewards.

The Solana network currently rewards stakers with an annual return of 7.5% on their staked tokens paid in SOL – called inflation rewards.

Although validators can take a commission on these inflationary rewards, many do not do so to remain competitive.

Share MEV rewards

Validators also make money in other ways, such as running MEV Strategies.

MEV, or maximum extractable value, refers to the reorganization of blocks of transactions for profit. While some forms of EVMs, such as Sandwich attacks, harm users, other types help keep markets efficient.

Marinade’s Repetny said validators earn 1.5% more per year from other revenue sources like MEV, but it is not shared with stakeholders by default.

The new stake auction marketplace will allow validators to share MEV rewards with stakers.

“Validators cannot go negative with inflation-linked reward commissions,” Repetny said. “SAM is the only way for them to remain competitive beyond setting a 0% commission. »

But Marinade won’t be the first staking provider to share MEV profits with stakers.

Jito already allows its validators to share such rewards with stakers, which is why it was able to offer higher rewards than Marinade.

Rank validators

Marinade’s equity market will operate similarly to the so-called cost-per-mile model used in advertising.

The model works by charging advertisers a certain amount for the number of times an ad appears.

Repetny said validators can set their bid and the maximum amount of SOL desired.

“Based on this offer and the inflation fee charged, validators will be ranked according to the expected return for punters and the best ones who have been awarded the stake delegation,” he said.

The system will operate via permissionless smart contracts controlled by the Marinade DAO board and community voting.

Income shake-up

Currently, one of the ways Marinade generates revenue is through its liquid staking token, mSOL, which charges users a 6% commission on inflation rewards. Marinade’s native staking currently has no fees in place.

After the launch of Marinade’s stake market, this commission will disappear, Repetny said. Instead, Marinade will make money from small fees charged on the stake market.

“The Stake Auction Marketplace will take a DAO discount on the value of the bid stream,” he said.

Repetny did not reveal the scale of the reduction and said it would be decided by a vote of Marinade token holders.

Switching to this new pricing model could be risky.

Currently, mSOL is the second biggest Liquid staking token Solana with $734 million staked and brings in around $200,000 in fees per day.

Marinade will waive these fees and there is no guarantee that its new staking market will be successful.

With rival Jito ahead of Marinade by some $800 million in deposits, such a risk might be necessary if Marinade is to reclaim its lost market share.

Repetny said the marketplace would be launched in stages and he expects the first parts, the delegation strategy and distribution of bids, to go live later this year.

Tim Craig is a DeFi correspondent at DL News. Do you have any advice? Send him an email to tim@dlnews.com.

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Related Topics:GROUND marinade-finance solana staking

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DeFi

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Published

6 months ago

29 July, 2024

CoinFlix Staff

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.

The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.

Bonk remains strong despite market fluctuations

While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.

Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.

Pepe should see a big rise in the next bull run

Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.

Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.

In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.

Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4

Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.

With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.

Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.

The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.

RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.

Discover the exciting opportunities of the Rollblock (RBLK) presale today!

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DeFi

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Published

6 months ago

29 July, 2024

CoinFlix Staff

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.

Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.

According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.

“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.

I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.

The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.

“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”

I expect them to launch actively managed crypto ETFs [in the] coming years. ”

Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.

“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.

Chasing mass adoption of normies may be chasing the wrong Grail from the start.

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