7 months ago
Marinade Finance, one of Solana’s original staking providers, has found itself in hot water with validator operators.
Validators argue that Marinade’s new Stake Auction Marketplace (SAM) harms the staking landscape, allowing malicious actors to thrive at the expense of honest validators.
Beyond losing stake in the network, chagrined validators suggest that, left unchecked, the SAM model is a threat to decentralization and Solana’s scalability moving forward.
Marinade has dismissed these accusations. Countering claims of apathetic negligence, Marinade argues those who criticize the new system do so out of spite.
Is this a case of willful blindness, or are validators looking for a scapegoat to blame for their own shortcomings?
WHY ARE VALIDATORS UPSET?
Once heralded as a powerful new model that would push staking APY to new heights, the SAM has drawn scorn and skepticism from certain validators. Marinade’s SAM enables validators to bid on network stake, with winners securing stake and passing on elevated rewards to delegators.
To win auctions, validators competitively bid on network stake. However, surging demand for stake has driven validators to bid at potentially unsustainable levels. In previous epochs, winning validators needed to yield over 10% APY to win auctions, a rate considered impossible to achieve through native staking alone.
This has led certain operators to speculate on how these validators can afford such high bids. Suggesting that such yield can only be achieved through malicious activities, like sandwich attacks, private mempools, and off-chain deals, some validators argue that Marinade is turning a blind eye to dishonest validators.
Distressed validators have created analytics dashboards to express their frustrations and support their claims. Hanabi’s ‘Marinade Stake Selling’ dashboard highlights that a number of validators flagged for malicious activity have won stake through the SAM.
Responding to accusations levied by third-party dashboard creators, Marinade CEO Michael Repetny argues “Hanabi lacks any methodology, they only copy labels from other Stakewiz dashboard to call it a day.”
Adding further context to the claims of disgruntled operators, Repetny affirms “Hanabi lost 1M SOL from Marinade so it’s understandable he fights the new system.”
Concerned validators have taken to Marinade’s Discord server to air their grievances. Operators have claimed that, through the SAM, over 2.7M SOL has been staked to questionable validators, including sybils and sandwiches. Disgruntled operators even suggested “Marinade wants you to have side deals, ethical or not.”
Additionally, validators have argued that if “most of the mSOL pool is delegated to unethical validators it’s a really bad look for the Solana ecosystem.”
In an exclusive statement with SolanaFloor, Max Kaplan, Head of Engineering at Edgevana, credits Marinade for trying something inventive that “had never been done before”.
However, Kaplan admits that Marinade “went full capitalist… basically, the highest bidder wins. Marinade doesn’t really care if a validator bids for stake and is just gonna lose money on that stake, that’s not their problem… They’re happy to take the money and give that to mSOL holders.”
Experts argue that in current conditions, staking yield over 10% simply isn’t sustainable. Kaplan contends “10% APY is higher than the native staking yield that is paid out on chain. The money has to come from somewhere.”
Without making any accusations, Kaplan theorizes that additional yield could potentially come from a validator’s own “marketing/growth budget” or other sources like “SWQoS / private mempool deals”.
Responding to any accusations, Repetny reinforces Marinade's stance that “SAM provides the best yield on the market for delegators. It is not an active policy maker or opinionated strategy to tweak the network.”
Validators argue that Marinade’s new Stake Auction Marketplace (SAM) harms the staking landscape, allowing malicious actors to thrive at the expense of honest validators.
Beyond losing stake in the network, chagrined validators suggest that, left unchecked, the SAM model is a threat to decentralization and Solana’s scalability moving forward.
Marinade has dismissed these accusations. Countering claims of apathetic negligence, Marinade argues those who criticize the new system do so out of spite.
Is this a case of willful blindness, or are validators looking for a scapegoat to blame for their own shortcomings?
WHY ARE VALIDATORS UPSET?
Once heralded as a powerful new model that would push staking APY to new heights, the SAM has drawn scorn and skepticism from certain validators. Marinade’s SAM enables validators to bid on network stake, with winners securing stake and passing on elevated rewards to delegators.
To win auctions, validators competitively bid on network stake. However, surging demand for stake has driven validators to bid at potentially unsustainable levels. In previous epochs, winning validators needed to yield over 10% APY to win auctions, a rate considered impossible to achieve through native staking alone.
This has led certain operators to speculate on how these validators can afford such high bids. Suggesting that such yield can only be achieved through malicious activities, like sandwich attacks, private mempools, and off-chain deals, some validators argue that Marinade is turning a blind eye to dishonest validators.
Distressed validators have created analytics dashboards to express their frustrations and support their claims. Hanabi’s ‘Marinade Stake Selling’ dashboard highlights that a number of validators flagged for malicious activity have won stake through the SAM.
Responding to accusations levied by third-party dashboard creators, Marinade CEO Michael Repetny argues “Hanabi lacks any methodology, they only copy labels from other Stakewiz dashboard to call it a day.”
Adding further context to the claims of disgruntled operators, Repetny affirms “Hanabi lost 1M SOL from Marinade so it’s understandable he fights the new system.”
Concerned validators have taken to Marinade’s Discord server to air their grievances. Operators have claimed that, through the SAM, over 2.7M SOL has been staked to questionable validators, including sybils and sandwiches. Disgruntled operators even suggested “Marinade wants you to have side deals, ethical or not.”
Additionally, validators have argued that if “most of the mSOL pool is delegated to unethical validators it’s a really bad look for the Solana ecosystem.”
In an exclusive statement with SolanaFloor, Max Kaplan, Head of Engineering at Edgevana, credits Marinade for trying something inventive that “had never been done before”.
However, Kaplan admits that Marinade “went full capitalist… basically, the highest bidder wins. Marinade doesn’t really care if a validator bids for stake and is just gonna lose money on that stake, that’s not their problem… They’re happy to take the money and give that to mSOL holders.”
Experts argue that in current conditions, staking yield over 10% simply isn’t sustainable. Kaplan contends “10% APY is higher than the native staking yield that is paid out on chain. The money has to come from somewhere.”
Without making any accusations, Kaplan theorizes that additional yield could potentially come from a validator’s own “marketing/growth budget” or other sources like “SWQoS / private mempool deals”.
Responding to any accusations, Repetny reinforces Marinade's stance that “SAM provides the best yield on the market for delegators. It is not an active policy maker or opinionated strategy to tweak the network.”
9 months ago
Despite uncertainty across the wider crypto markets, the Solana ecosystem continues to reward its loyal users with a wealth of liberal incentives and airdrops.
Which rewards programs and incentives should you have on your radar?
JUPITER ASR (ACTIVE STAKING REWARDS)
Ever since the $JUP TGE supporters and community members have been able to stake JUP tokens within Jupiter’s platform and vote on decentralized governance proposals that shape the direction and future of the protocol.
All voters and contributors, regardless of how they cast their votes, are eligible for a share of around $60M in Jupiter ASR (Active Staking Rewards). Allocations are calculated based on an individual account’s voting power and will be comprised of:
50M JUP
7.5B WEN
7.5M ZEUS
7.5M UPT
750,000 SHARK
These highly anticipated Active Staking Rewards are expected to be distributed before July 10, with an official allocation checker scheduled to go live sometime on July 5. It’s important to note that JUP claimed during the event will automatically added to your wallet’s staked amount.
SANCTUM $CLOUD AIRDROP
Following the success of its gamified LST loyalty program, Wonderland, Sanctum’s initial $CLOUD airdrop is slated to go live in mid-July. Attracting over 300,000 participants and amassing over $1B TVL (Total Value Locked) in early June based on DeFiLlama data, Sanctum’s CLOUD airdrop is one of the ecosystem’s most eagerly awaited events.
Sanctum's CLOUD airdrop introduces a novel approach to token distribution. With 10% of the total allocated to the event, the Sanctum has made the decision to split reward users based not only on their Wonderland XP, but also on their 'Earnestness'.
An official date for the CLOUD airdrop is yet to be announced, but it expected to go live sometime in mid-July.
MARINADE SEASON 3
One of the largest DeFi applications by TVL in the Solana ecosystem, Marinade’s Season 3 Rewards program is well underway.
Expected to run for three months, Marinade Season 3 promises to distribute 25M MNDE tokens, currently valued at $2 .7M, to community members who deepen total mSOL liquidity. Users are encouraged to earn bonus MNDE incentives by providing mSOL liquidity in three different ways:
Kamino mSOL/SOL LP Vault - Up to 12.5M MNDE tokens will be allocated to users who provide mSOL/SOL liquidity on Kamino Finance. LP providers will also be eligible for Kamino rewards.
Looping Meteora mSOL/SOL LP Tokens - Up to 5M MNDE tokens will be allocated to users who deposit into mSOL/SOL pools on Meteora and strategically loop their yield through Solend.
Discretionary LP/Partner Rewards - The remaining 7.5M MNDE tokens will be distributed to community members who deepen mSOL liquidity through various other partnerships. These partnerships are dynamic and currently undisclosed.
KAMINO SEASON 2
Another Solana DeFi powerhouse, Kamino’s Season 2 records program is thriving in full force and scheduled to end around the end of July.
Reward allocations are calculated linearly based on points accrued through using the protocol’s various functions, including lending and borrowing markets. By staking KMNO, the platform’s native token, users receive multipliers that boost their point generation.
Kamino’s Season 2 rewards program has been further bolstered by the integration of PayPal’s PYUSD stablecoin, which has attracted over $38M in TVL at press time.
DEBRIDGE
A clear winner of Jupiter’s Round 3 LFG Launchpad candidates, Debridge’s ongoing rewards program has attracted over 470,000 unique accounts and transferred over $3 .1B across different blockchains.
Accruing points through Debridge’s rewards program is straightforward, users simply need to transfer funds between chains using the protocol and by referring new users.
PARCL PERPETUAL POINTS SEASON 2
As of July 1st, the Parcl Perpetual Points program has entered its second season. Expected to last for the remainder of 2024, the
Which rewards programs and incentives should you have on your radar?
JUPITER ASR (ACTIVE STAKING REWARDS)
Ever since the $JUP TGE supporters and community members have been able to stake JUP tokens within Jupiter’s platform and vote on decentralized governance proposals that shape the direction and future of the protocol.
All voters and contributors, regardless of how they cast their votes, are eligible for a share of around $60M in Jupiter ASR (Active Staking Rewards). Allocations are calculated based on an individual account’s voting power and will be comprised of:
50M JUP
7.5B WEN
7.5M ZEUS
7.5M UPT
750,000 SHARK
These highly anticipated Active Staking Rewards are expected to be distributed before July 10, with an official allocation checker scheduled to go live sometime on July 5. It’s important to note that JUP claimed during the event will automatically added to your wallet’s staked amount.
SANCTUM $CLOUD AIRDROP
Following the success of its gamified LST loyalty program, Wonderland, Sanctum’s initial $CLOUD airdrop is slated to go live in mid-July. Attracting over 300,000 participants and amassing over $1B TVL (Total Value Locked) in early June based on DeFiLlama data, Sanctum’s CLOUD airdrop is one of the ecosystem’s most eagerly awaited events.
Sanctum's CLOUD airdrop introduces a novel approach to token distribution. With 10% of the total allocated to the event, the Sanctum has made the decision to split reward users based not only on their Wonderland XP, but also on their 'Earnestness'.
An official date for the CLOUD airdrop is yet to be announced, but it expected to go live sometime in mid-July.
MARINADE SEASON 3
One of the largest DeFi applications by TVL in the Solana ecosystem, Marinade’s Season 3 Rewards program is well underway.
Expected to run for three months, Marinade Season 3 promises to distribute 25M MNDE tokens, currently valued at $2 .7M, to community members who deepen total mSOL liquidity. Users are encouraged to earn bonus MNDE incentives by providing mSOL liquidity in three different ways:
Kamino mSOL/SOL LP Vault - Up to 12.5M MNDE tokens will be allocated to users who provide mSOL/SOL liquidity on Kamino Finance. LP providers will also be eligible for Kamino rewards.
Looping Meteora mSOL/SOL LP Tokens - Up to 5M MNDE tokens will be allocated to users who deposit into mSOL/SOL pools on Meteora and strategically loop their yield through Solend.
Discretionary LP/Partner Rewards - The remaining 7.5M MNDE tokens will be distributed to community members who deepen mSOL liquidity through various other partnerships. These partnerships are dynamic and currently undisclosed.
KAMINO SEASON 2
Another Solana DeFi powerhouse, Kamino’s Season 2 records program is thriving in full force and scheduled to end around the end of July.
Reward allocations are calculated linearly based on points accrued through using the protocol’s various functions, including lending and borrowing markets. By staking KMNO, the platform’s native token, users receive multipliers that boost their point generation.
Kamino’s Season 2 rewards program has been further bolstered by the integration of PayPal’s PYUSD stablecoin, which has attracted over $38M in TVL at press time.
DEBRIDGE
A clear winner of Jupiter’s Round 3 LFG Launchpad candidates, Debridge’s ongoing rewards program has attracted over 470,000 unique accounts and transferred over $3 .1B across different blockchains.
Accruing points through Debridge’s rewards program is straightforward, users simply need to transfer funds between chains using the protocol and by referring new users.
PARCL PERPETUAL POINTS SEASON 2
As of July 1st, the Parcl Perpetual Points program has entered its second season. Expected to last for the remainder of 2024, the
10 months ago
The Solana restaking protocol, Solayer, has garnered everyone’s attention after the success of its deposit launch.
Solayer is an innovative restaking protocol on Solana, offering functionality similar to what EigenLayer has introduced on Ethereum. The initial deposit phase was exclusive and by invitation, allowing users to restake SOL directly on the protocol or through liquid staking products such as mSOL, bSOL, JITOSOL, and INF.
Solayer is an innovative restaking protocol on Solana, offering functionality similar to what EigenLayer has introduced on Ethereum. The initial deposit phase was exclusive and by invitation, allowing users to restake SOL directly on the protocol or through liquid staking products such as mSOL, bSOL, JITOSOL, and INF.
10 months ago
Solana has created an avenue for better staking on the blockchain with the launch of Marinade Finance. It's works by routing assets to the best-yielding validators. This offers liquid staking through its mSol token, allowing for flexible staking and integration with various DeFi protocols. There's Over $1 billion worth of assets locked in Marinade Finance's smart contracts
