- June 19, 2024
- Posted by: [email protected]
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Marinade, Solana’s pioneering liquid and native staking protocol, has unveiled the Stake Auction Marketplace (SAM) as a pivotal feature of its V2 upgrade. This announcement, detailed in a press release shared with Cryptonews, follows the recent launches of Marinade Native and Protected Staking Rewards (PSR), marking a significant step forward in the platform’s evolution.
SAM is designed as an open public auction platform, enabling stakers to delegate their SOL tokens and allowing validators to place bids. This innovative feature is intended to enhance staking yields for users and boost decentralization within the Solana network. The platform is set to launch live auctions in August, with bid distributions scheduled to take place in the fourth quarter of the year. By creating a marketplace where validators compete for stakes, SAM aims to optimize staking returns and enhance network security and decentralization.
The Marinade team has highlighted that SAM will help stabilize staking on Solana and increase its resistance to censorship. This initiative ensures that all participants can access the best possible staking rewards. Additionally, the team plans to provide a simulation of SAM at the end of June to refine the user interface, ensuring it is intuitive and efficient for all users.
The announcement also addressed several significant challenges faced by stakers today. These include the cumbersome task of manually monitoring validator performance, which is often described as “incredibly confusing and inefficient.” Moreover, stakers are concerned about security vulnerabilities and the risk of irreversible reward losses due to underperforming validators or changes in node operator commissions. To tackle these issues, the development of Marinade V2 focuses on making staking simpler, safer, and more accessible for everyone.
Through SAM, stakers will have the ability to automatically delegate their stakes to a marketplace where validators bid for them, potentially boosting yields beyond the current 9% annual percentage yield (APY) available from a 0% commission validator. With additional revenue streams, such as maximal extractable value (MEV) and priority fees, the APY could reach as high as 9%, significantly increasing the attractiveness of staking on Solana.
Michael Repetny, a core contributor at Marinade, underlined that the V2 update marks a significant milestone for both Marinade and Solana. He emphasized that the new features create a seamless staking experience, encouraging greater participation in the ecosystem. Repetny noted that Marinade is setting a new standard for Solana staking by eliminating smart contract risks through an automated delegation strategy. He stated, “The introduction of SAM will ultimately rebalance optimizing staking rewards for our users and support network decentralization simultaneously.”
Marinade has also announced Marinade Native in July 2023, which is claimed to be the first product on Solana to provide a performant and permissionless staking technique without relying on the liquid staking smart contract. This development aims to provide users with a more straightforward and secure staking option, enhancing the overall staking experience on the Solana blockchain.
As Marinade continues to innovate, the launch of SAM and Marinade Native marks a significant advancement in making staking more efficient, rewarding, and accessible, thereby strengthening Solana’s position as a leading blockchain platform.
