Background and History
Marinade Finance was established in 2021, emerging from a Solana hackathon where it secured an $80,000 grant. The protocol was co-founded by Lucio Tato, an Argentinian programmer with extensive experience in proof-of-stake chains. Marinade aims to increase Solana’s decentralization by delegating staked SOL to over 100 high-performing validators.
Key Features and Technologies
Liquid Staking
Marinade’s primary feature is liquid staking, where users stake SOL and receive mSOL. This token can be used across various DeFi applications, providing liquidity while still accruing staking rewards. The value of mSOL increases relative to SOL as rewards are accrued.
Native Staking
Marinade offers a native staking option that avoids smart contract risks, providing 100% uptime protection. This feature allows users to stake SOL directly and benefit from the platform’s automated rebalancing strategy, which optimizes stake delegation based on performance and decentralization metrics.
Automated Rebalancing
The algorithmic rebalancing strategy ensures that staked assets are distributed among top-performing validators, maximizing rewards and maintaining network decentralization. Validators compete for delegation via Marinade’s Stake Auction Marketplace (SAM), ensuring the best staking rates for users.
Usage and Applications
Marinade Finance enhances the Solana ecosystem by offering flexible staking solutions. mSOL can be used as collateral in DeFi protocols for activities like lending, borrowing, and yield farming. The platform’s native staking option provides a secure way to earn rewards without the risks associated with smart contracts.
Governance and Future Developments
Governance is managed through the MNDE token, enabling holders to vote on protocol updates and new features. Marinade introduced on-chain DAO governance in April 2022, allowing MNDE holders to participate in decision-making processes related to the protocol’s treasury and stake allocation. The platform continues to evolve, with plans to integrate additional DeFi applications and improve staking functionalities.
Notable Events
Introduction of mSOL
The launch of mSOL in 2021 was a pivotal event for Marinade. mSOL quickly gained widespread adoption, being held in over 75,000 wallets and integrated with numerous DeFi platforms, highlighting its importance in the Solana ecosystem.
Launch of MNDE Token
Minted on November 7, 2021, MNDE was launched as a fair-launch token without an initial coin offering (ICO). It plays a central role in governance, allowing holders to vote on protocol changes and participate in the Marinade DAO.
Token Details
Tokenomics
MNDE has a total supply of 1 billion tokens, with allocations for team incentives, community rewards, and strategic reserves. The token distribution includes 7.5% for initial contributors, a dynamic allocation within the DAO-controlled treasury, and locked tokens to ensure alignment with the protocol’s growth.
Token Utility within Ecosystem
MNDE tokens are used for governance, enabling holders to propose and vote on changes within the Marinade DAO. They can also be staked to earn rewards, incentivizing active participation in the community.
