Marinade Finance Introduces Open Doors Program
Marinade Finance, the leading non-custodial liquid staking protocol on the Solana blockchain, introduces the Open Doors Program.
Marinade Finance introduces the Open Doors Program to increase Solana’s censorship resistance and the overall liquidity of Solana DeFi while also distributing more Marinade governance power via MNDE token to leading ecosystem players.
Introduction to Open Doors Program
Open Doors Program is a 12-month program accessible to Solana projects, validators, and wallets offering up to 160M MNDE (16% of total token supply) in additional incentives to grow up to 40 million mSOL adoption via their platform.
Marinade TVL put in these protocols between February 1, 2023 and January 31, 2024 will be eligible for awards of 4 MNDE every 1 mSOL retained for a 12-month period, dispersed among the actors that engaged in bringing or hosting it.
The mission of the Open Doors Program is to increase Solana’s censorship resistance and the overall liquidity of Solana DeFi while also distributing more Marinade governance power via MNDE token to leading ecosystem players.
“We are thrilled to participate in the Marinade Open Door Program. This initiative gives us the flexibility to explore and incentivize new use cases for mSOL.We believe this program will help unlock a new batch of SOL liquidity to power DeFi ecosystem-wide while strengthening the network.”
— Stendhal, Partnerships at Raydium
How Open Doors Improves Solana Decentralization and Liquidity
Marinade’s stake pool delegation technique distributes to validators outside the superminority, thus as more SOL is staked to Marinade, Solana’s stake gets more broadly spread, and its Nakamoto Coefficient, a measure of network decentralization, grows.
Solana DeFi liquidity is also enabled through liquid staking deposits such as mSOL. Although 70% of SOL tokens are staked, just 2-3% are liquid. This means that around two-thirds of SOL tokens cannot be utilized in DeFi. The more liquid and spread the stake gets through the Marinade pool, the more fuel Solana DeFi has to expand.
The Open-door program will be divided into use cases, and Marinade’s team will have three months to reveal any further use cases that are permitted to join. The following use cases will begin on February 1st:
- Protocols having a part of their TVL containing mSOL
- Validators using the Liquid-self stake product
- Individuals using the referral program
These protocols are free to distribute MNDE deposits through liquidity mining. Or to store and lock the tokens in a Chef NFT to participate in mDAO governance.
MNDE Token Distribution for Builders
Since its on-chain governance was implemented in April 2022, the MNDE coin has seen considerable utility improvements. MNDE holders may now direct SOL stake to validators and MNDE liquidity mining emissions to protocols thanks to the introduction of Liquidity Mining and Validator Gauges.
MNDE and mSOL were listed for trading on Coinbase and Gate.io in October 2022, giving the coins with even more liquidity. mSOL may also be traded on Kraken.
The notion and effectiveness of liquidity mining were hotly debated and voted on by the DAO in 2022. According to the findings, liquidity mining is not a good source of sticky mSOL TVL growth. A treasury gauge was voted on and implemented, allowing holders to direct MNDE missions back to the treasury. 77% of emissions were voted to be returned to the government. Then, another vote was held, which lowered the 1M token emissions to 250,000.
Currently, about 60,000 MNDE is being distributed weekly via liquidity mining. | View the current pools receiving MNDE on the liquidity mining homepage
The MNDE token will be more difficult to get for DeFi liquidity miners seeking APY. Since there will be less of it accessible in various pools and collateral. MNDE has never been more accessible to builders and those pushing liquid staking liquidity through mSOL.
About Marinade Finance
Marinade Finance is a liquid staking protocol operating on the Solana blockchain. Users can stake the SOL token to earn compounding interest while helping to maintain decentralization throughout the Solana ecosystem.
SOURCE
https://medium.com/marinade-finance/driving-community-liquidity-and-decentralization-introducing-the-marinade-open-doors-program-4d69f5b48fb
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