The collapse of FTX posed significant challenges for the Solana ecosystem, with the price of SOL dropping dramatically to as low as $8—a decline of over 95%. Despite this, the Solana network and its community demonstrated remarkable resilience. User numbers surpassed one million, developer counts exceeded 2,000, and new DeFi and NFT projects continued to emerge.
A rebound in Bitcoin's price contributed to a strong recovery for Solana, with SOL’s price increasing by over 200% in just two months. The Grayscale Solana Trust even reached a premium of 800%, reflecting strong market optimism about Solana’s long-term potential.
Currently, 295.7 million SOL are staked on the Solana network. However, the adoption of Liquid Staking Derivatives (LSDs) remains relatively limited. During the FTX collapse, Solana's liquid staking TVL fell from a peak of 12.8 million SOL to a low of 5 million SOL. It has since recovered to around 12 million SOL. A more recent entrant, Jito, has quickly accumulated over $44.86 million (2.3 million SOL) in TVL since its launch.
These metrics suggest that staking on Solana offers considerable potential when weighing risks and rewards. The fact that liquid staking still represents only a fraction of total staked SOL indicates there is significant room for growth.
Amid this recovery, Jito has emerged as a particularly strong performer. Its TVL grew by nearly 70% in the past 30 days, making it a standout project in the Solana staking landscape. Let’s take a closer look at Jito and other major players in Solana’s liquid staking ecosystem.
How Liquid Staking Works on Solana
Liquid Staking Derivatives on Solana represent a deeper exploration of DeFi possibilities. These tokens are derivatives of Solana’s native asset, SOL, and they enable a unique staking strategy. Users can earn staking rewards without sacrificing asset liquidity, enjoying the dual benefits of participating in DeFi applications while still earning staking income.
In traditional blockchain ecosystems, users often face a choice between staking rewards and other potentially high-yield opportunities. Solana's liquid staking tokens change this dynamic entirely. This mechanism allows users to benefit from both staking returns and DeFi market participation simultaneously.
Beyond providing greater flexibility for users, this strategy also contributes to network security and decentralization. Because liquid staking tokens distribute user assets across multiple validators, they reduce the risk of fund concentration and enhance the network's decentralization.
Various liquid staking projects on Solana each offer distinct features, including different staking strategies and fee structures. Projects like Jito, Marinade, BlazeStake, marginFi, and JPool not only provide users with diverse options but also demonstrate the innovative spirit and development potential of the Solana ecosystem.
Major Liquid Staking Projects on Solana
Marinade Finance: Leading with Highest TVL
Marinade Finance stands out in the Solana ecosystem with the highest Total Value Locked (TVL). The platform focuses on providing convenient Solana staking solutions through its core service of "liquid staking," which allows users to convert staked assets into liquid assets without lengthy unlocking periods.
To keep pace with emerging protocols, Marinade introduced a rewards program in mid-September. Although Marinade's SOL TVL experienced a slight decline during the quarter, it has rebounded since September 20th. Additionally, the July launch of Marinade Native complements its liquid staking service—this automated platform distributes stakes across over 100 high-performing validators without performance fees and with reduced smart contract risk.
Marinade also recently launched the Marinade Native program, which enables users to easily delegate their staking authority while maintaining withdrawal rights. The Marinade Earn rewards program running from October 1, 2023, to January 1, 2024, offers additional MNDE rewards and includes a referral system to incentivize user acquisition.
Since its 2021 launch, Marinade has matured as a DeFi protocol, with TVL exceeding $1.5 billion at market peak. Although current levels are below this peak, Marinade maintains its position as the TVL leader in the Solana ecosystem. Its token, mSOL, enjoys strong market liquidity and is listed on major exchanges including Coinbase and Kraken.
Marinade Finance currently dominates the Solana liquid staking market with over 5.47 million SOL staked. The project's TVL reached $613 million with a monthly growth rate of 78%, demonstrating both its strong influence within the Solana ecosystem and its potential for future development.
Jito: Early Mover in Solana MEV Capture
In November 2022, just before the FTX collapse, Jito Labs officially announced the launch of its Jito staking service, marking its entry into the liquid staking protocol space. Users delegating SOL to validator nodes receive JitoSOL as a liquidity certificate, whose value increases as validator rewards accumulate. Jito Labs' early focus on Solana's Maximum Extractable Value (MEV)领域 allows Jito to distribute MEV rewards to stakers, thereby enhancing overall staking returns.
However, Jito's launch coincided with the FTX collapse, which caused significant liquidity outflows from the closely connected Solana ecosystem. Initially, Jito's TVL struggled to grow substantially due to lack of market confidence and liquidity needs.
As the Solana ecosystem began recovering in the second half of 2022, Jito's TVL started steady growth. Particularly in August, Jito launched a points incentive program encouraging users to participate in Jito staking, hold JitoSOL, engage in DeFi activities, and refer new users—rewarding community contributions with points. This strategy significantly accelerated Jito's TVL growth.
Additionally, Lido DAO's decision in October 2022 to cease support for new SOL staking, with operators gradually exiting the SOL staking market from November onward, created an opportunity. Nearly 6 million stSOL needed to find new staking venues. Jito, with its dual advantages of staking and MEV rewards plus its points incentive program, successfully attracted a substantial amount of stSOL, causing its TVL to surge rapidly and establishing itself as a top-two LSD protocol on Solana.
Jito's liquid staking protocol delegates users' SOL to MEV-enabled validator nodes, with MEV rewards distributed as additional income to stakers. The platform launched a referral program in late August, a points system in mid-September, and announced an airdrop on November 28th.
Compared to Marinade, Jito is gradually closing the gap in ecosystem integration, decentralization, and staking model diversity. Jito's core competitiveness in MEV value capture and distribution continues to expand alongside the Solana network's growth. 👉 Explore advanced staking strategies
Jito's project TVL currently stands at $412 million with a monthly growth rate of 90%, demonstrating strong momentum in Solana's liquid staking market. As Jito continues to develop, we anticipate it playing an increasingly important role in the Solana ecosystem.
BlazeStake: Promoting Solana Node Decentralization
BlazeStake, emerging in 2023 as a liquid staking protocol, is dedicated to promoting decentralization among Solana nodes. On the BlazeStake platform, stakers have two options: joining the standard delegation pool or selecting any validator for SOL staking. Either way, stakers receive bSOL as proof of their liquid staking returns.
BlazeStake has been hinting at an airdrop for bSOL holders since last year. In August 2023, BlazeStake launched a points system and its own token, BLZE, conducting an airdrop based on user points. This strategy not only incentivizes user participation and bSOL holding but also increases the project's attractiveness and visibility.
By November 30, 2023, BlazeStake's staked SOL value achieved impressive growth with a year-on-year increase of 1,234%, reaching a total of 678,560 SOL (approximately $40 million). This achievement clearly reflects BlazeStake's rapid growth within the Solana ecosystem and positive market response.
The project's TVL reached $50.33 million with a monthly growth rate of 124%, demonstrating strong momentum in the Solana ecosystem. Although BlazeStake hasn't yet issued a token, its airdrop plan is explicitly mentioned in the whitepaper, though specific details remain undisclosed.
These developments indicate that BlazeStake is quickly becoming an important force for decentralization and innovation in Solana's staking ecosystem. As the project continues to develop and consolidate its market position, we can expect BlazeStake to play an increasingly critical role.
MarginFi: Lending Leader Expanding into Staking
MarginFi stands out as one of the leading lending protocols in Solana's decentralized finance (DeFi) ecosystem with its innovative strategies. On July 3, 2023, MarginFi launched a points system that rewards users for deposits, loans, and referrals, incentivizing greater participation.
This strategy yielded significant results, with TVL growing by 743% year-over-year, elevating MarginFi to sixth position in the Solana DeFi TVL rankings. This achievement reflects both MarginFi's strong market growth and its important position within the Solana DeFi ecosystem.
At the end of the quarter, MarginFi further expanded its business by launching its own liquid staking token (LST), making it one of the platforms with the highest natural yield among all LSTs on Solana. This move further solidified MarginFi's leadership position in the Solana staking market.
Currently, MarginFi's project TVL has reached $149 million with a monthly growth rate of 153%, again highlighting its rapid growth and market appeal within the Solana ecosystem. Although MarginFi hasn't yet issued its own token, its business model and market performance have already attracted widespread attention.
Regarding funding, MarginFi completed a $3 million seed round融资 on February 23, 2022, providing a solid financial foundation for future development. Given MarginFi's innovative strategies and significant growth in the Solana DeFi market, we expect it to continue playing an important role in推动 the development of the Solana ecosystem.
JPool: Automated Staking Allocation Strategy
JPool attracts attention in the Solana ecosystem with its liquid staking protocol. A distinctive feature of this protocol is that it doesn't support direct validator selection by users. Instead, JPool employs an intelligent allocation mechanism that automatically distributes user-staked assets based on overall yield rates. This approach simplifies the user decision-making process while aiming to optimize the overall performance of staking returns.
According to the latest data, JPool's TVL has reached $40.35 million, showing a monthly growth rate of 62%. This significant growth indicates that despite JPool's relatively unconventional staking approach, it has received a positive response in the market.
Notably, JPool has not yet issued its own token. This means JPool's growth and appeal are based primarily on the advantages of its staking service itself, rather than short-term attraction through token incentives. This strategy demonstrates JPool's confidence in its service quality and user experience.
JPool's success demonstrates the potential of the liquid staking model within the Solana DeFi ecosystem, particularly in terms of optimizing and automating staking strategies. JPool's model provides an attractive option for users seeking simplified and efficient staking solutions within the Solana ecosystem.
With its unique intelligent liquid staking model, JPool is gradually developing within the Solana ecosystem. Its future performance may further reflect the effectiveness and appeal of intelligent staking strategies in the DeFi space.
The Future of Solana's Liquid Staking Ecosystem
As the Solana ecosystem continues to mature and expand, its staking ecosystem demonstrates trends of diversification and innovation. From Jito's strong performance and Marinade Finance's steady growth to MarginFi's innovative strategies and JPool's intelligent staking model, each project contributes to the ecosystem's prosperity in its unique way. These projects reflect not only the dynamism and diversity of the Solana ecosystem but also the spirit of continuous exploration and innovation in the decentralized finance领域.
Although these projects differ in growth rates, strategic choices, and market positioning, they collectively drive the overall development of the Solana ecosystem and provide users with rich options. As the market develops and technology advances, we can expect the Solana ecosystem to continue attracting more participants, constantly pushing forward innovation and development in decentralized finance.
Frequently Asked Questions
What is liquid staking on Solana?
Liquid staking allows users to stake their SOL tokens while receiving a derivative token that represents their staked position. These derivative tokens can be used across various DeFi applications, enabling users to earn staking rewards while maintaining liquidity for other investment opportunities.
How does MEV benefit stakers in protocols like Jito?
Maximum Extractable Value (MEV) refers to profits validators can make through reordering or including/excluding transactions in blocks. Protocols like Jito that work with MEV-enabled validators can capture these additional profits and distribute them to stakers, thereby increasing overall yields beyond standard staking rewards.
What are the risks associated with liquid staking?
While liquid staking provides greater flexibility, it does involve certain risks including smart contract vulnerabilities, potential depegging of derivative tokens from underlying assets, and protocol-specific risks related to validator selection and reward distribution mechanisms. Users should thoroughly research each protocol before participating.
How do I choose between different liquid staking protocols?
Consider factors such as the protocol's track record, security audits, validator decentralization approach, fee structure, additional benefits (like MEV rewards), integration with other DeFi applications, and the liquidity of the derivative token across exchanges and platforms.
Can I unstake my SOL immediately with liquid staking?
Most liquid staking protocols provide immediate liquidity through their derivative tokens, which can be traded on supported platforms. However, the actual unstaking process from the blockchain may still involve a cooling-off period, though this doesn't affect the liquidity of your derivative tokens.
Are liquid staking derivatives taxable?
The tax treatment of liquid staking derivatives varies by jurisdiction. Generally, receiving staking rewards is typically considered taxable income, while trading derivative tokens may trigger capital gains taxes. Consult with a tax professional familiar with cryptocurrency regulations in your country.