Marinade: Revolutionizing DeFi Through Liquid Staking and Native Empowerment

5 min readAug 22, 2023

Introduction

Over the years, the bear market has always been an avenue to build portfolios of investors hoping to reap profit in the bullrun. Different strategies get utilized, for example, we have:

Yield farming
Launchpad
Staking
Liquidity mining
DeFi lending
Cloud mining etc.

While investors utilize one or two of these strategies, Staking leads the rest as rewards come with high APRs.

What is Staking?

Well think of it as a means of passive earning while holding onto certain cryptocurrencies. This is because the blockchain puts it to work using a consensus mechanism called the Proof-of-Stake. One of the major benefit of staking is that as a user, you contribute to the security and efficiency of the blockchain projects you support.

When it comes to the kinds of decentralized stake, we’ve got Direct(traditional) staking and we got Liquid staking which differs from traditional staking by allowing users stake their tokens directly on a proof of stake (PoS) network such as Ethereum, and receive a receipt token, called a liquid staking token (LST), programmatically minted by the protocol.

Staking on Marinade Finance

We’ve got a lot of platform to utilize liquid staking in the crypto space but we’ll be focusing on Solana blockchain. One of the best, if not the best in the realm of decentralized finance (DeFi) is Marinade finance, a groundbreaking protocol founded in March 2021 during a hackathon on Solana’s blockchain with its funding sourced through decentralized means, instilling a sense of ownership within the community. It introduces a transformative approach to staking through liquid staking in the DeFi space.

When native staking with Marinade, there is no smart contract interaction, while when liquid staking you receive an equivalent value of “marinated SOL” tokens (mSOL) that can be used in decentralized finance (DeFi) for other uses like lending and borrowing, swapping etc. This approach revamps the staking landscape.

Below is an infographic showing why you need to stake with Marinade

Marinade Token

mSOL
Marinade created the mSOL token, a fully liquid version of SOL (Solana) is the most integrated liquid staking token of SOL. When you stake your SOL in the Marinade stake pool, you receive mSOL tokens, enabling you to retain control while participating in DeFi.
What sets mSOL apart?
Let’s explore its remarkable advantages when staking with Marinade:

Retain full control over your tokens and associated accounts.
Unlock your stake, receiving a tokenized version of your position for DeFi use.
Leverage the open-sourced, permissionless delegation formula with over 150 validators.
Stake and initiate delayed unstaking without incurring any charges.
Enjoy a competitive 6% fee on your earned rewards.

Engage in the vibrant Native Solana community and contributor-driven governance.

Marinade DAO

Marinade has a Decentralized Autonomous Organization (DAO) with a governance token, MNDE, which can be locked into the Realms governance platform to enable governance access to the token holder. In order to unlock the tokens, a 30-day unlocking process must be initiated in Realms.
Discover the unique attributes of Marinade Native:

Maintain complete control over your SOL tokens, ensuring ownership.
Zero smart contract risk as no smart contracts are involved.
Automated, fee-free staking management and rebalancing.
Embrace a permissionless delegation formula supported by 150+ validators.
Stake and delay unstaking without incurring charges.
Immerse in the vibrant Native Solana community and contributor-driven governance.

Marinade's Mission:

Empowerment within the Solana Ecosystem
To empower users with the best tools to stake, secure, and participate in the Solana ecosystem.

Marinade Native: A Revolution in Delegation

Marinade’s innovation extends to Marinade native, a tool for the management and optimization of staked SOL by Marinade’s delegation strategy. It is an alternative to liquid staking that allows users to benefit from an automated delegation strategy without using any smart contract.
It differs from liquid staking on the following points:

Marinade Native does not rely on a smart contract but leverages native Solana functionalities.
When using Marinade Native, you retain custody over your SOL and stay the only authority that can withdraw it at all times
Marinade Native does not include any fee for the user.
There is no deposit fee, no ongoing management fee and you can exit without any fee by waiting the cooldown period.
Marinade does offer a way to exit your Marinade native staking position (partially or in full) instantly for a small fee that depends on available liquidity
You do not receive mSOL when using Marinade Native. You are creating Solana stake accounts in your own wallet and delegating the management of those to Marinade
Since you are staking natively when using Marinade Native, rewards are directly sent to each of your stake accounts at the end of every epoch (every 2-3 days).

Marinade's Ethos: Empowerment and Redefining the Staking Paradigm

Marinade’s ethos embodies decentralization. Its fusion of liquid staking, community-driven funding, and directed stake empowers users while redefining the staking paradigm. It exemplifies DeFi’s potential to reshape conventional financial models and empower users across the ecosystem. This decentralized approach underscores Marinade’s commitment to autonomy, transparency and governance.

Within the ever-evolving landscape of decentralized finance (DeFi), Marinade stands as a beacon of innovation and empowerment. By seamlessly merging liquid staking, community-driven funding, and directed stake, Marinade is not just a protocol; it's a revolution that empowers users while redefining the staking paradigm.
As we journey through the realms of DeFi, Marinade's commitment to autonomy, transparency, and governance remains unwavering. The fusion of cutting-edge technology, community ownership, and strategic delegation paints a vivid picture of what the future of finance can be – a place where users hold the reins, where collaboration thrives, and where innovation knows no bounds.

So, with open arms and a heart full of excitement, I extend a warm welcome to you: Welcome to Marinade – a realm where your stake isn't just a number, but a force that shapes the destiny of Solana's decentralized ecosystem. Get ready to experience the power of Marinade and embark on a journey that holds the promise of a decentralized, empowered, and vibrant future.

Together, let's stake our claim and forge a path towards a new era of financial empowerment.

Welcome to Marinade: The best place to stake your SOL, and the best place to shape the future. 🚀🌐🌟