Marinade Introduces Stake Auction Marketplace to Enhance Solana Decentralization and Yield Optimization
![img]
By Sead Fadilpašić
Updated: June 19, 2024, 09:18 EDT | 1 min read
![img]
Marinade, Solana’s pioneering liquid and native staking protocol, has unveiled the Stake Auction Marketplace (SAM) as a key feature of its V2 upgrade. As reported by Cryptonews, SAM represents the latest addition following the successful launches of Marinade Native and Protected Staking Rewards (PSR).
SAM serves as an open public auction platform where stakers delegate their SOL tokens to validators bidding for them. This innovative approach aims to empower users to maximize staking yields and foster Solana’s decentralization efforts, the team emphasized.
Live auctions are scheduled to commence in August, with bid distributions slated for the fourth quarter. The team anticipates that SAM will stabilize Solana’s staking environment and enhance resistance against censorship. They assure that all participants will receive optimal staking rewards.
A simulation of SAM is set for the end of June to fine-tune its user interface for efficiency. Marinade’s V2 upgrade addresses significant staking challenges, such as manual monitoring of validator performance and security vulnerabilities leading to irreversible reward losses due to underperformance or changes in node operator commissions.
The primary goal of Marinade V2 is to simplify staking processes, enhance security, and broaden accessibility. SAM facilitates automatic delegation of staked tokens to a competitive market of validators, augmenting yields beyond the current 9% APY offered by validators with 0% commission.
Including Maximal Extractable Value (MEV), priority fees, and other revenue streams, the annual percentage yield (APY) could potentially reach up to 9%. According to Michael Repetny, Core Contributor at Marinade, this marks a significant milestone for both Marinade and Solana, promising a seamless staking experience that encourages greater ecosystem participation.
Repetny asserts that Marinade sets a new standard in Solana staking by mitigating smart contract risks through automated delegation strategies. “The introduction of SAM will rebalance staking rewards optimization for users while supporting network decentralization,” he affirmed.
Meanwhile, Marinade previously launched Marinade Native in July 2023, heralded as Solana’s first product offering a performant and permissionless staking strategy without the liquid staking smart contract.
Follow Us on Google News
