Marinade Finance has Integrated with Solflare
Marinade Finance and Solflare wallet are teaming up to help further the decentralization of the Solana blockchain. Marinade’s liquid staking solution has now been integrated directly into Solflare!
Marinade Finance is a trustless liquid staking solution for the Solana ecosystem. Traditionally, when a token is staked, that token is illiquid and “out of commission” until unstaked. This dilutes capital efficiency and involves an implicit opportunity cost – which Marinade has succeeded in recovering by restoring liquidity to staked SOL!
Marinade enables SOL stakers to receive mSOL, which remains liquid while growing in value alongside staking rewards – in other words, it makes staked SOL completely liquid. mSOL can be deposited into liquidity pools, used as collateral, and traded like any other token. This idea was so appealing that in less than three days after going live, Marinade hit 100,000 SOL staked.
As of today mSOL – the liquified staked SOL from Marinade – is an integral part of the Solana DeFi ecosystem. Used for lending, liquidity provision and more (on FTX, Serum, Raydium, Solend, Orca, and Saber, etc, and more to come!), mSOL has quickly become the most capital efficient staked SOL derivative in the market empowering the whole Solana ecosystem.
Crucially, Marinade actively decentralizes staked SOL to a pool of over 400 validators. This means that while providing liquidity to SOL stakers, Marinade also drives decentralization of SOL staking – which is crucial for Solana, as discussed in a little more detail below!
Staking has always been a key feature of Solflare – Solflare was the first staking wallet available on Solana. As of the time of publication, 24% of the entire circulating supply of SOL is staked through Solflare, with a value of over $15 billion. In other words, Solflare is the single largest place for Solana users to stake SOL. And as of today, users will be able to stake their SOL through Solflare with Marinade!
Integrating with Marinade has far-reaching implications for the greater good. Solflare will be encouraging their users to move their existing staked SOL over to Marinade – because Marinade’s model of decentralizing stake between validators provides censorship resistance to the whole network. Moving billions of dollars worth of stake over to Marinade will represent a significant increase in censorship resistance for the Solana blockchain as a whole.
Given the amount of SOL staked through Solflare and the function of Marinade’s mSOL model, this integration between Solflare and Marinade will undoubtedly increase Solana’s Nakamoto Coefficient while enhancing the already robust Solana DeFi ecosystem. This is a net win for everyone using Solana!
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