marinade finance Marinade Finance is a liquid staking protocol running on the Solana blockchain.
When it comes to storing assets, cryptocurrency staking has already solved key hurdles caused by the tight-grip rules and shady transactions of the traditional banking system. Through blockchain-powered staking, storing assets can now produce more rewards, and every transaction is finally transparent.
The only hurdle is that while these funds are staked or locked, holders cannot use them on profit-making transactions such as trading and selling. Yes, they are allowed to unlock these assets before the staking period ends, but it comes with specific penalties. To counteract these downsides, “liquid staking” was introduced, allowing holders to access their funds and use them on decentralized finance (DeFi) applications, all while being locked. Background
Marinade Finance, which has an interesting “kitchen” concept, aims to bring onboard the brightest minds in the tech industry to “cook” the best and most decentralized financial offering for its community. Along with these goals, it intends to unlock true democratization in liquid staking, offer complete transparency for its users, and bring badly-needed services to the Solana blockchain. What is Marinade Finance?
Marinade Finance is a liquid staking protocol running on the Solana blockchain. Interested participants can start using the platform by staking their SOL tokens using automated staking strategies, which will offer them “marinated” SOL or (mSOL) token, the network’s staking token.
Users can withdraw/unstake their SOL tokens in two ways: By waiting for the unlocking period to end, which can take one to two epochs, or right away but with a minimal charge. They can also directly exchange between SOL and mSOL on secondary markets.
When users deposit their tokens, Marinade automatically delegates these assets to its list of top-performing validators . Despite these delegations, participants shouldn’t worry as Marinade Finance still offers holders 100% control over their assets.
When it comes to rewarding fees, it only charges a 2% fee, which, according to it, is the lowest rate in the market. This 2% fee is Marinade’s charge for letting investors use its advanced and secure staking service. A part of this fee goes to the platform partners who help bring total value locked (TVL) into its “mSOL” token. TVL is a key metric for a DeFi platform’s efficiency.
Neodyme, Ackee Blockchain, and Kudelski Security , one of the industry’s most trusted security firms
have audited and approved Marinade Finance’s smart contracts. These three audits ensure that Marinade’s codes have passed all the industry standards, making it a safe and secure ecosystem for investors. Importance of SOL Staking
Apart from earning passive income, SOL staking offers one more important benefit that users shouldn’t forget: helping the Solana network become more decentralized and secure. Users’ collective effort in staking helps tighten the security of the entire network, which, in the end, benefits all participants. Two things must happen to increase Solana’s decentralization: First, more SOL tokens should be staked, and second, more trustworthy validators to handle them. MNDE Token
MNDE is Marinade’s governance token and serves as fractional ownership of the platform’s decentralized autonomous organization (DAO). Unlike other tokens, it hasn’t gone through the traditional backing of a token sale, venture capitalist funds, and private investors. Another interesting fact here is that the team has allocated a considerable amount of MNDE tokens to the DAO and treasury reserve to provide enough muscle to its governance community. mSOL Token
mSOL is Marinade Finance’s tokenized version of staked SOL tokens. Think of mSOL as “receipts” that let holders exchange them for staked SOL and their accumulated rewards. Holders can use mSOL on DeFi platforms while earning staking rewards, giving them not just one income stream.
mSOL will remain a valuable tool as long as the Marinade earns staking rewards that would consistently grow users’ investments. With the growing utility of mSOL and its importance to the Marinade ecosystem, it can potentially replace SOL, and while it may not happen right away, it is something that the team is looking forward to.
Users can acquire mSOL in two ways: Stake them on Marinade’s staking pool or trade mSOL on secondary markets, including FTX and Sayber. Note that with trading, charges are involved in the transactions. For projects using the mSOL tokens, holders should remember that Marinade Finance cannot vouch for their security as the platform’s team doesn’t audit them. Marinade advises users to exercise full vigilance and do-you-own-research (DYOR) before investing in mSOL-powered projects. mSOL Utilities
Collateral for borrowing and lending transactions.
Liquidity provider for pools. Holders can […]
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