Analysis of the Solana Liquid Staking Market: Comparison of Four Major Market Maker Projects

Recently, the market has warmed up, and Solana (SOL) has jumped to the sixth position in the cryptocurrency market capitalization ranking. Among all proof-of-stake (PoS) blockchains, Solana's staked assets are second only to Ethereum. However, the total locked value (TVL) of decentralized finance (DeFi) applications in the Solana ecosystem is relatively low, at only $1.137 billion, approximately 11.3% of its historical peak.

In the composition of Solana's TVL, liquid staking projects play an important role and are key factors in driving the recovery of TVL. Among them, Marinade and Jito have become leaders in this field with the highest TVL. This article will delve into the main participants in the Solana liquid staking sector and conduct a comparative analysis of their strategies and market performance.

Solana Stake Overview

According to data platforms, as of December 12, the market value of SOL is $30.53 billion, the staking market value is $27.62 billion, the staking ratio is 69.18%, the amount staked is 391 million SOL, the inflation rate is 6.75%, and the reward rate is 6.87%. The staking market value of SOL ranks second among PoS public chains, only behind ETH; the staking ratio is relatively high among mainstream PoS public chains.

There are a total of 1,986 validators in the Solana ecosystem, with the top-ranked validators offering nearly 8% APY without any commission.

To incentivize SOL holders and enhance network security, the Solana Foundation has launched the "staking pool program". Users can deposit SOL into the staking pool to receive SPL tokens that represent their share, known as liquid staking tokens (LST). Data shows that the staking pool has locked 16.82 million SOL, with an average APY of 6.68%, accounting for approximately 4.3% of the total staking amount. The top four staking pools are Marinade, Jito, BlazeStake, and Lido.

Analysis of Major Liquid Staking Projects

Marinade Finance

Marinade Finance is one of the earliest liquid staking protocols in the Solana ecosystem, launched on the mainnet in August 2021. Users can stake SOL to receive mSOL, with staking rewards directly accumulated into mSOL. Notably, Marinade also offers native staking services, allowing users to earn staking rewards without the need for smart contracts.

Currently, Marinade has locked 7.058 million SOL, making it the largest liquid staking project on Solana, with a TVL of $777 million. The staking yield is 6.543%, and the staking volume has grown by 31.22% in the past 30 days. Its governance token MNDE has a circulating market cap of $85.99 million and a total market cap of $356 million, with a significant recent increase.

Jito

Jito launched its liquid staking platform at the end of 2022. Users can stake SOL to receive JitoSOL, with earnings accumulating directly within. What sets Jito apart is its development of maximum extractable value (MEV) infrastructure for the Solana network, with a portion of MEV earnings distributed to JitoSOL holders, providing higher returns.

Jito currently has 6.38 million SOL locked, with a TVL of $455 million, and a staking yield of 6.892%. The staking volume has increased by 17.77% in the last 30 days. Its governance token JTO has a circulating market cap of $342 million and a total market cap of $2.973 billion, showing a significant recent increase.

BlazeStake

BlazeStake was launched in May 2022 and has recently risen rapidly due to the overall growth of the Solana ecosystem, surpassing Lido to become the third largest liquid staking project. Users can stake SOL to receive bSOL, with earnings accumulating directly within it. BlazeStake primarily uses Solana Labs' official staking pool smart contract, boasting the largest set of validators, allowing users to liquid stake with specific validators.

BlazeStake currently locks 1.52 million SOL, with a TVL of 108 million USD and a staking yield of 6.232%. The staking volume has experienced astonishing growth of 177% over the past 30 days. Its governance token BLZE has a total market value of 38.84 million USD, with a significant recent increase.

Lido

Although Lido dominates in Ethereum liquid staking, its development on Solana is not satisfactory. It launched its services on Solana in September 2021 but failed to fully capitalize on its first-mover and brand advantages. Recently, it has announced that it will stop accepting new stakes on Solana. Users staking SOL can receive stSOL, and the earnings are also accumulated within.

Lido has locked 887,000 SOL on Solana, with a TVL of $63.4 million and a staking yield of 6.717%. However, the staking volume has decreased by 41.43% in the past 30 days. Its governance token LDO has a circulating market cap of $2.095 billion and a total market cap of $2.356 billion, showing a lackluster performance recently.

The Application of LST in DeFi

LSTs from major projects are widely supported in the Solana DeFi ecosystem. Mainstream lending protocols such as marginfi and Solend support mSOL, JitoSOL, and bSOL as collateral, but have delisted stSOL. In Solana's largest DEX, Orca, the mSOL/SOL and bSOL/SOL trading pairs have ample liquidity, while JitoSOL/SOL and stSOL/SOL are relatively scarce.

The project's incentive measures seem to significantly impact the growth of staking volume and DEX liquidity. Blaze offers the highest incentives, with a 15.37% APR BLZE subsidy available for Solend deposits. Marinade also provides an MNDE subsidy, while Jito has not yet launched its incentive program. Lido has chosen to exit the market due to a lack of incentive capacity as the token distribution is nearing completion.

Summary

There are various representative liquid staking solutions in the Solana ecosystem, each with its own characteristics and widely supported by DeFi projects. Marinade, as a pioneer, provides comprehensive services; Jito enhances returns through MEV infrastructure; BlazeStake allows directional staking; and Lido represents multi-chain liquid staking services. However, the total amount of liquid staking is still relatively small, accounting for only 4.3% of the total staking in the network.

Incentives are still crucial for the growth of staking volume and LST liquidity. In the future, more competitive solutions may emerge, such as marginfi's LST. Overall, the Solana liquid staking market is highly competitive, with various projects showcasing their strengths, injecting vitality into ecological development.