Jet Protocol x Marinade Finance

Hello :wave:

I am Pierre from Marinade. I would love to see Marinade and Jet Protocol collaborate together to bring additional services and value to the whole Solana ecosystem!

If you have any questions, do not hesitate to ask.

Collateral Asset Profile

  • Collateral Name (and symbol): Marinade Sol (mSol)
  • Collateral Short Description: mSOL is a liquid staking token that people receive when they stake SOL on the Marinade protocol. These mSOL tokens represent their staked SOL tokens. They act as a receipt, allowing you to exchange them later on for your staked SOL and the earned rewards. Meanwhile, you can use mSOL in DeFi while enjoying your staking rewards.
  • Total Value in Circulation: As much as people stake SOL on Marinade. Currently around 6.7M mSol tokens for a $1.4B value.
  • Total Value on Solana: Potentially, mSol value will be the exact total SOL value + APY. The price of mSOL goes up relative to SOL each epoch with rewards being accrued into the underlying staked SOL.
  • Adoption: mSOL is available in SOL/USDC/USDT/ETH/BTC and other pairs across the Solana ecosystem and on FTX. Similar case: mSOL is used as collateral on all major lending protocols: Port, Larix, Solend
  • Price Oracle Feeds:

Proposal

Detailed description of the asset and the reason(s) the Jet Community should consider onboarding it.

Marinade.Finance is a non-custodial liquid staking protocol built on Solana. Staked SOL from Marinade users is spread across more than 400 validators outside of the top 20 security groups using an open formula. Through this, Marinade makes Solana more decentralized and more secure.

On the side of users, by aggregating this staking, Marinade is able to issue mSOL as a liquid staking derivative. A token that accrues the staking rewards into itself, thus becoming more valuable against the underlying SOL every epoch.
It essentially becomes the best collateral on Solana to borrow against: price in SOL going up, recognized everywhere and always redeemable, and securing the network Jet builds on at the same time. A win-win-win setup.

Use Cases

mSOL can be used in many DeFi protocols, all without losing your staking rewards.

For example, you can:

  • Add mSOL to a liquidity pool on a decentralized exchange
  • Lend your mSOL or use it as collateral on borrowing/lending protocols
  • Supply mSOL to yield farming protocolsStake your mSOL to earn additional MNDE rewards
  • Trade your mSOL on CEXs and DEXs
  • Etc.

We are always on the lookout for new protocols where mSOL could be integrated. A non-exhaustive list of mSOL use cases in DeFi can be found at this link.

Relevant Metrics

  • Total Value In Circulation: Potentially as much as SOL tokens
  • Total Value Locked: 1.4bn usd value
  • Age of Asset: Mainnet launch on 2nd August 2020

List sources for metrics in #Additional-Links

https://stats.marinade.finance/d/sqUQd1Onk/marinade-kpi-dashboard?orgId=1&refresh=1m

Risk

  • Technical Risk: Marinade has been audited 3 times to reduce as much as we can the technical risk.
  • Counterparty Risk: Marinade is permissionless and non-custodial. People cannot face direct counterparty risk through our protocol
  • Liquidity Risk: Marinade markets got more than $50m of daily exchanged volume (Cours du MARINADE STAKED SOL (MSOL), Graphiques, Capitalisation | CoinMarketCap).
  • Price Feed Risk: mSol price is directly linked to Sol price. Not inherent risk on mSol token
  • Bridge Risk:
  • Other Risk:
10 Likes

Additional Links

1 Like

I would 100% support this. Seems like a no-brainer to me. Marindade has been an early mover and great actor in the solana space as far as I can tell. holding mSOL is go to advice for me giving people a simple way to get exposure to staked solana. Also pleased with their approach of trying to decentralise the validators as much as possible.
Would appreciate the ability to hold mSOL on Jet to be able to borrow against.

5 Likes

+1

upside heavily outweighs potential risk. easy yes.

2 Likes

Agreed. No brainer to support mSOL.

2 Likes

Yes please. msol support is why I have moved some of my funds from jet to solend

2 Likes

If you want a censorship-resistant Solana, you encourage people to stake with better incentives and UX. mSOL is the best we have and the most liquid token in this particulate space. As long as we make sure our liquidation process is in place for any big market downturns, I support this.

I’ve have been using Marinade in the past month, I enjoy it. Very good UI and UX. Thanks for making this proposal. mSOL has been on my mind for a while.

3 Likes

collaboration is supported

2 Likes

Thank you guys for all this support !

I realized I forgot the Oracle part.

We currently have Switchboard and Pyth mSol price endpoints.

1 Like

Hey.
I support idea on mSOL integration.
Liquid staking is free alpha for Solana users and also big opportinity for lending protocols

2 Likes

I am in support of the collab

2 Likes

I support idea on mSOL integration. Personally would increase my deposits, if this is implemented.

1 Like