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Marinade Finance, the project with the highest total value locked (TVL) in the Solana ecosystem, has introduced its first-ever native staking service, Marinade Native.
Welcome Marinade Native! Turn your SOL staking on autopilot:
Automatic stake delegation to 150+ best-performing validators
– no smart contract exposure
– 0% deposit fee (limited time only)
– 0% performance/withdrawal fee (forever)
🧵 Here’s how it works: pic.twitter.com/R52FfnGBRT
— Marinade (@MarinadeFinance) July 19, 2023
The innovative service allows users to stake SOL directly with over 130 network validators with a simple click. This non-custodial solution provides users with a risk-free avenue, removing the typical smart contract risks associated with staking.
The launch of Marinade Native addresses two significant challenges in SOL staking: the requirement for multiple transactions and constant performance monitoring. It simplifies the process, offering an easy route for staking with multiple validators, an approach that previously carried the risk of smart contract errors.
we recognize that many institutional investors are balancing important risk considerations with returns, and for the first time they can now benefit from a stake delegation strategy with no smart contract exposure.”
Cerba, core contributor of Marinade Finance, recognized these problems, stating:
“We recognize that many institutional investors are balancing important risk considerations with returns, and for the first time they can now benefit from a stake delegation strategy with no smart contract exposure.”
With approximately 97% of all SOL staked natively (amounting to around 370 million SOL), Marinade Native is positioning itself to tap into an $8.1 billion market opportunity, attracting institutional investors who were previously discouraged by the smart contract risk and high concentration risk associated with depending solely on one validator’s performance.
The new service brings together the strategic delegation concept of liquid staking and the benefits of native staking. Users retain custody of their staked SOL while gaining an average yield of 7% APY* with no management fees. Moreover, Marinade’s unique scoring system ensures the SOL is allocated across a trusted pool of validators.
The system, which evaluates validators based on yield, performance, and decentralization, guides the distribution of 60% of Marinade’s stake. MNDE and mSOL token voting determine the remaining 40%. Marinade will be offering additional MNDE incentives for Marinade Native for a year, starting from August.
These incentives are expected to lift the staking APY of Marinade Native beyond that of any individual validator.