Marinade Finance, a liquid staking protocol for the Solana blockchain, has announced a token incentive program to reward users who deposit their solana (SOL) coins in exchange for a liquid staking derivative, mSOL.
The program, called "Open Doors," will give out up to 160 million marinade tokens (worth some $9.6 million) as rewards to users over the next 12 months. The goal is to grow the amount of solana locked on the Marinade platform by 40 million SOL, the team said on Twitter.
Liquid staking allows users to receive a token that represents their staked assets. These tokens, in this case mSOL, can then be used in other decentralized finance (DeFi) protocols or for trading, but must be returned to unlock the original staked assets. This approach to staking allows users to free up liquidity and generate extra yield on assets that are being staked.
Currently, less than 3% of all SOL is used for liquid staking, according to Marinade's estimates. However, as more users make use of liquid staking, this is expected to change. The team behind Marinade believes that a growth in liquid staking will have a significant impact to boost liquidity across various protocols in the Solana ecosystem.
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