In the ever-evolving world of decentralized finance (DeFi), one project is making waves on the Solana blockchain—Marinade. As staking takes center stage, Marinade offers a seamless liquid-staking protocol that not only simplifies the process but also optimizes returns. Imagine being able to stake your Solana (SOL) tokens with the confidence that they are delegated to the top-performing validators, all while retaining the flexibility to use your staked assets in various DeFi applications. Intrigued? Keep reading to discover how Marinade is transforming the staking landscape and why their native token, MNDE, could be your next big opportunity.
What is Marinade?
Marinade Finance is a liquid staking protocol built on the Solana blockchain. It allows users to stake their SOL tokens and receive mSOL (marinated SOL) in return. This mSOL can be used in various DeFi applications, providing liquidity and earning additional rewards. Marinade optimizes staking by delegating users' tokens to the best-performing validators, ensuring maximum returns.
The Purpose and Utility of MNDE Token
The Marinade crypto token (MNDE) serves as the governance token of the Marinade Finance ecosystem. It has a dual purpose: governance and incentivization.
Governance
MNDE token holders can participate in protocol governance via the Marinade decentralized autonomous organization (DAO). This allows them to vote on proposals and make changes to the parameters of the platform, promoting collaboration and innovation.
Incentivization
The MNDE token is used to incentivize early contributors and collaborators, aligning the interests and goals of the community with the long-term success of the Marinade Finance ecosystem.
Addressing Key Problems
The problem that the Marinade Finance ecosystem aims to solve is the lack of accessibility and collaboration in the decentralized finance (DeFi) space. By offering a liquid staking solution on Solana, Marinade Finance aims to help decentralize the network, spread adoption, and create opportunities for users to participate in DeFi while staking and helping the network.
Tokenomics and Distribution Model
The total supply of MNDE is 1,000,000,000 tokens. The circulating supply can be monitored on the Marinade stats page. The token distribution model is designed to ensure fair distribution and incentivize participation.
Initial Contributors
7.5% of the total supply (75,000,000 MNDE) was allocated to initial contributors. This distribution was completed in January 2024.
DAO Treasury
The remainder of the MNDE treasury is under the control of the DAO, which can submit proposals and vote to determine how and when to distribute the tokens.
Marketing and Open Door Program
A budget of up to 6,000,000 MNDE is allocated for marketing expenses between September 2022 and September 2023. Additionally, up to 160,000,000 MNDE is allocated for the Open Door program, capped by Marinade's TVL growth.
Milestone Budget
A 46,000,000 milestone budget was distributed to the team and advisors for TVL objectives. When operating expenses are greater than protocol revenue, MNDE is taken out of this budget to support contributor compensation.
Distribution Methods
MNDE has been distributed through various methods, including airdrops to mSOL holders and liquidity mining to boost token distribution. Liquidity mining of MNDE is now under the Marinade Council's control, which can determine the DeFi protocols and pools to support.
Unique Features and Benefits
Marinade offers several unique features that set it apart from other staking protocols.
Instant Unstaking
One of the standout features of Marinade is its Instant Unstaking mechanism. This allows users to instantly unstake their SOL at any time, providing them with immediate access to their funds while still reaping the benefits of staking.
Solana Validator Monitoring Dashboard
Marinade offers an intuitive dashboard for tracking validators on the Solana network. This dashboard provides users with historical performance, APY, commissions, and stake distribution data, ensuring transparency and informed decision-making.
Automated Delegation Strategy
The MNDE token provides value to users through its use in the Marinade Native feature, which allows users to benefit from an automated delegation strategy with their natively staked SOL without having to use any smart contracts. This feature is designed to make it easier for users to stake their SOL tokens and earn rewards without worrying about the technical details of staking.
APY Calculation
The MNDE token is also used to calculate the APY (annual percentage yield) for liquid staking with Marinade. The APY is calculated using a 30-day SMA (simple moving average) of the 14-day APY, which is based on the smart contract price of mSOL and its price 14 days before. This allows users to see the potential returns they could earn by liquid staking their SOL tokens with Marinade.
Controlling Inflation
To control inflation, Marinade uses mechanisms like token burning and staking rewards. For instance, mSOL, the liquid staking token representing a stake position in the Marinade stake pool, constantly increases in price after each epoch as long as there are staking rewards distributed. The rewards are accumulated on total_staked, and the price of mSOL is calculated based on the total staked and the number of tokens minted.
Token Burning
Token burning is another deflationary tactic used by Marinade to boost token value and address oversupply or underperformance. By permanently removing tokens from circulation through mechanisms like smart contracts, projects can create scarcity and potentially stabilize or increase value as demand outstrips supply, provided user adoption and utility remain robust.
The Team Behind Marinade
The team behind Marinade Finance is composed of dedicated professionals with expertise in blockchain technology, specifically in the Solana ecosystem, and in the staking industry. While specific details about individual team members' qualifications are not provided, the company's success in becoming the largest DeFi application on Solana by TVL suggests a strong and experienced team.
Core Contributors
- Michael Repetny: A core contributor to Marinade Finance.
- Brandon: Heads up communications and growth at Marinade.
Achievements
Marinade Finance has built a strong reputation in the Solana ecosystem, with a focus on staking and liquid staking solutions. The company has established itself as the largest DeFi application on Solana by TVL, indicating a significant level of user trust and engagement.
Partnerships and Collaborations
Marinade has introduced Marinade V2, allowing clients of leading qualified custodians to trade and hold mSOL from their Coinbase Prime accounts. This shows that the team is not only focused on decentralization but also on spreading adoption and creating opportunities for users to participate in DeFi while staking and helping to secure the network.
Market Data
As of the latest data:
- Current Price: $0.3081
- Market Cap: $0.00
- 24h Price Change: -4.02%
- 7d Price Change: 16.82%
- 30d Price Change: 8.75%
- 24h High: $0.3212
- 24h Low: $0.3065
- All-Time High:
