[Asset Onboarding Application] - $mSOL - Marinade
Author(s): @Cerba
Tags: asset-onboarding
Asset Name: Marinade
Asset Code: mSOL
Submission Date: 2022-06-28
Ratification Date: 2022-07-19
Status: Active
Forum URL: https://forum.jetprotocol.io/t/asset-onboarding-application-msol-marinade/1002/10
Application Profile
1. What is your motivation for submitting this application?
Jet protocol is a lending protocol with lots of room to grow and an already defined market to target. On the other hand, mSOL is already a prime collateral on existing lending protocols and is by nature an extremely good choice for collateral compared to SOL.
We believe that integrating mSOL will benefit both Jet users, by allowing them to use a prime collateral choice that accrues in value passively and mSOL users by offering them more DeFi opportunities and unlocking even more liquidity. It is therefore an interesting idea to explore.
2. What is your association to the proposed asset?
Marinade finance has created and developed mSOL as a derivative liquid staking token for SOL.
3. What are the key benefits to the Jet Protocol for onboarding the asset?
Jet protocol would add an asset already widely used (and requested) as collateral in the Solana ecosystem. This operation would allow Jet to offer as collateral an asset with a $244M marketcap, more than 61k holders, and a high liquidity in DeFi.
Finally, mSOL represents SOL staked across 476+ validators. As mSOL is a decentralization factor of the Solana ecosystem, we believe that by making mSOL widely available in all protocols and growing its use cases, Solana gets more and more decentralized and censorship-resistant as a result.
4. What are the known limitations of the asset?
mSOL is an asset that gets minted or burned according to the total number of SOL staked. This asset will accrue in value against SOL each epoch when rewards are distributed.
Project Profile
1. Please provide a brief, high-level description of the asset’s native ecosystem (project), including protocol’s type (peer-to-peer/ peer-to-liquidity/ etc.).
Marinade is a liquid staking protocol that works towards the goal of decentralizing Solana. Marinade’s product is mSOL, a liquid staking derivative token that stakers receive when staking with Marinade. mSOL then acts as a “receipt” for your staked SOL, allowing you to withdraw your initial SOL deposit and the accumulated rewards at any time you want.
At the same time, mSOL is widely integrated in Solana DeFi and can be used as a value-accruing equivalent of SOL, making it fundamentally more efficient than holding SOL as holders are benefiting from the staking rewards as they use mSOL.
2. Who are the founding members? What is their current involvement with the project?
Marinade was created during a Solana hackaton and is the result of a merge between 2 teams that had started working on liquid staking. You can learn more about this here.
Marinade is bootstrapped and has had the objective of creating a functional DAO as soon as possible from its inception. The governance power has now been delegated to MNDE holders, even if the initial team and new contributors keep on working on Marinade’s product.
3. Please indicate the ICO date, initial price and valuation of the token and total capital raised (in USD and crypto terms).
Marinade did not have any ICO. mSOL’s supply is moving and controlled by a multi-audited smart contract.
4. How much of the capital raised via the ICO was converted into FIAT (in terms of FIAT currency and amount of tokens)?
None.
5. What was the way of issuing and distributing the tokens? Were there pre-ICO investors?
None - there was no ICO and no pre-ICO investors.
All mSOL have been minted and distributed for an equivalent SOL value staked into Marinade’s contract.
6. What is the current token distribution (project team vs. investors vs. public)?
Marinade does not keep nor distribute any mSOL to the team. We can consider that mSOL is fully distributed between its users.
7. Are there any fees generated by the protocol? If yes, please provide details and amounts.
Marinade protocol takes a 2% management fee on rewards, that is currently paused to compensate for the unstake incident. Following a recent DAO vote, this fee will be paused until September 2, 2022 or until 2646 SOL have been redirected towards the staked SOL pool.
Marinade also takes a fee on immediate unstake, ranging from 0.3% to 3% depending on available liquidities (0.3% being the usual fee). A fee-less unstake option exists and will require to wait for one to two epochs to get back your staked SOL.
8. Is the protocol audited? By what firms? Please provide link(s) to the audit documentation.
Marinade protocol has been audited twice and has passed a code review:
Kudelski Security - Read the audit: https://marinade.finance/docs/KudelskiSecurity.pdf
Ackee Blockchain - Read the audit: https://marinade.finance/docs/AckeeBlockchain.pdf
Neodyme - Read the code review: https://marinade.finance/docs/Neodyme.pdf
9. Is the protocol open source? If yes, please provide links to the repository.
Yes, both the protocol and the stake distribution algorithm are.
10. Other relevant project data or comments:
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mSOL is already available as a collateral on Solend, Atrix, Larix, Port, and has been listed on Kraken and FTX.
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mSOL is the biggest liquid staking solution on Solana. See Defillama
Asset Profile
1. Asset name:
mSOL
2. Asset type (native/ wrapped):
Native
3. One-sentence description of the asset:
mSOL is a liquid staking derivative token allowing you to benefit from staking rewards while owning a liquid token that you can use in DeFi.
4. What’s the purpose of the asset within its native ecosystem?
mSOL is a decentralization factor of the ecosystem, as staking with Marinade allows it to spread the stake over the long tail of validators and out of the superminority. Thanks to this strategy, more SOL end up staked to performing and smaller validators and SOL’s Nakamoto coefficient is slowly rising.
mSOL also unlocks liquidity for users as it allows them to both benefit from staking rewards and from using a value-accruing SOL equivalent in DeFi.
5. Does the asset have any use outside of its native ecosystem (integrated protocols)?
mSOL has been integrated in more than 25 out of the 30 biggest protocols on Solana in terms of Marketcap.
It can be used to provide liquidity or as a collateral in most of the available DeFi protocols. See Marinade’s DeFi page for a non-exhaustive list of integrations.
6. Please provide all Smart Contract address. If the project is open source, detail how the Smart Contracts are implemented.
Marinade smart contracts are available on this page of our documentation.
Asset Liquidity
1. What exchange(s) support the asset?
Centralized exchanges: FTX, Kraken
Decentralized exchanges: Orca, Raydium, Crema, Aldrin, Saber, Serum
2. Does the asset have liquidity on Serum? What is the liquidity depth (resting orders)?
mSOL has plenty of liquidity on Serum, with more than $3.7M spread on multiple pairs.
You can see the Liquidity Depth here.
3. Please provide 7-day asset trading history (daily aggregated trading volumes for trading pair of asset with USDC).
On June 28, the 7-day trading volume for mSOL/USDC has been $19.02M on DEXs exclusively. See Vybenetwork stats.
4. Which oracles monitor the asset? How many feeds are available?
mSOL uses Pyth and Switchboard as oracles. Nonetheless, we recommend mSOL integrations to not rely on oracles, but rather on the on-chain price that can be calculated or fetched from our API.
5. How often does the asset drop significantly in price? Please provide a link to the price history.
mSOL follows the price of SOL and has never experienced an unexpected price drop or rise. See Coingecko for mSOL and Coingecko for SOL.
6. For stablecoins only: Has the asset ever lost the peg? If yes, for what reason?
7. For algorithmic stablecoins only: Please provide details on the risks associated with the design.
8. For wrapped assets only: Which bridges are used? Are they custodial or non-custodial? Are they audited?
9. What amount of asset’s liquidity exists in the integrated protocols (if applicable)?
As of June 15,
On DEXs:
Orca: $1.465M in mSOL (for $2.93M total liquidity on all mSOL pairs)
Raydium: $2.725M in mSOL (for $5.45M total liquidity on all mSOL pairs)
Crema : $435k in mSOL (for $870k total liquidity on all mSOL pairs)
Aldrin : $6.925M in mSOL (for $13.85M liquidity on all mSOL pairs)
Saber: $2.435M in mSOL (for $4.87M liquidity on all mSOL pairs)
Atrix: $4M in mSOL (for $8M liquidity on all mSOL pairs)
On Lending protocols:
Solend: 1.3M mSOL - $38M
Larix: 220,468 mSOL - $6.44M
Port: 72,965 mSOL- $2.137M
Automated strategies:
Friktion: 49k mSOL - $1.46M
Katana: 15.8k mSOL - $445k
10. List any parties interested in taking part in liquidations for the proposed asset type.
N/A
Key Mechanics
1. How many active addresses/ users currently hold the asset?
62,183 holders (as of 06/28)
2. Please provide a brief overview of the tokenomics.
mSOL tokenomics are based on a minting/burning system so that mSOL always represent the correct amount of total SOL staked in the pool.
3. Is the asset supply expected to increase or decrease over time? Is there a token burn mechanism? Is the project able to mint more tokens in the future?
As stated above, the minting/burning mechanism is part of the audited contract and mSOL relies on this mechanism to serve its purpose. Supply can only change when SOL is added or withdrawn from the protocol and Marinade does not have access to the mint function.
4. Please explain the staking mechanism (if any).
Staking mSOL is only available on Marinade and allows to mine MNDE, Marinade’s governance token, through the Liquidity Mining program. You cannot mine more mSOL by staking mSOL.
5. Please explain the slashing mechanism (if any).
No slashing.
6. Are there tokens on vesting schedule? If yes, what is that schedule and related vesture limitations?
No.
7. Are any tokens allocated for specific purposes or issuance schedules (e.g. liquidity mining)?
No.
Legal Profile
1. Is the project or the asset owned by any incorporated organization?
The project is owned by MNDE holders that have governance rights over mSOL. mSOL is therefore managed by a DAO and not an incorporated organization.
Marinade itself possesses a legal entity located in the British Virgin Islands.
2. In which jurisdictions was the token issued?
As Marinade has a legal entity in the British Virgin Islands and has created the contract minting and burning mSOL, it can be said that mSOL is emitted under BVI’s jurisdiction.
3. Was the token issued as part of regulatory process (e.g. securities offering)?
No
4. Was the token issued as part of fundraising process?
No
5. Has the project or the asset obtained any legal opinions on the regulatory standing of the token? If yes, please provide links to the relevant documentation.
No
6. Has the project or the asset had any legal interactions? If so, describe and provide documentation.
No
Links
Link to project’s white paper:
Link(s) to active communities related to the project:
Link(s) to project’s documentation portal/ source code for the system(s) that interact with the proposed asset:
Link(s) to audits - both procedural and Smart Contracts:
- https://marinade.finance/docs/KudelskiSecurity.pdf
- https://marinade.finance/docs/AckeeBlockchain.pdf
- https://marinade.finance/docs/Neodyme.pdf
Link(s) to legal opinions:
Link(s) to other legal material:
Other relevant links:
Medium: https://medium.com/@MarinadeFinance
Grafana dashboard: https://stats.marinade.finance/
Dune analytics dashboard: https://dune.xyz/zain/Marinade
List all relevant Solana addresses here:
Marketing / Campaign Material
If you have additional marketing material, recorded discussions, or collateral onboarding campaign material, link here:
Poll from the JetDAO Governance Committee
- Yes
- No
0 voters