📝 Editor’s Note:
Liquid staking allows a digital asset to be staked, and thus earn yield, while also deploying a tradable token which can be used anywhere in DeFi. This is useful — it means users can earn through staking and also through further DeFi transactions.
The data shows just how useful the liquid staking sector is — it's DeFi's second largest sector by TVL with $49.3B locked in liquid staking tokens (LST) protocols, according to DefiLlama.
Solana's LST ecosystem in particular has undergone a dramatic shift in the past four years as Jito, jumped from nowhere to become the leading provider of SOL LSTs with nearly a 70% market share.
We'll hear from analysts on Jito below, as well as takes on Rocket Pool, Lido, and Marinade, which all top 10 protocols in the LST space.
– ON Editorial Team
Liquid Staking 💧
Jito | Rocket Pool | Marinade | Lido
Jito 🥩
👥 Paul | Website | Dashboard
📈 JitoSOL is Solana's Leading LST and Also A Pillar of the Chain's DeFi Ecosystem
JitoSOL is the first liquid staking derivative on Solana to include MEV rewards. The LST tracks the price of SOL while accruing staking and MEV rewards. Yield is accrued in the price so JitoSOL will steadily appreciate against SOL. The token is also the most liquid LST on Solana with ~$100MM TVL in the relevant swap pools alone. Currently, two thirds of this liquidity sits on the non-JitoSOL side of the pools, enabling holders immediate and low-slippage exits back to other assets at any time.
On an average week, $2-300M worth of JitoSOL changes hands on Solana decentralized swap pools. This accounts for ~2% of all trading volume across all of Solana DeFi.
