Marinade staked SOL (MSOL)

Staking and Rewards

Marinade staked SOL lets you stake your SOL tokens by automatically delegating them to top-performing Solana validators. This helps you earn staking rewards while keeping control of your tokens. The value of your Marinade staked SOL tokens (mSOL) increases over time as staking rewards accumulate.

Liquidity and DeFi Use

When you stake SOL with Marinade, you receive mSOL tokens that represent your staked SOL. These tokens are liquid, meaning you can use them in decentralized finance (DeFi) applications. For example, you can lend, borrow, or provide liquidity using mSOL without unstaking your original SOL. This keeps your assets flexible and earning rewards simultaneously.

Network Support and Decentralization

Marinade staked SOL helps decentralize the Solana network by spreading stake across many high-quality validators. It uses an automated system to select validators based on performance and decentralization goals, strengthening the network’s security and reliability.

Additional Features

• No lockups: You can unstake your SOL anytime by trading mSOL back to SOL or waiting for a short unlock period.
• Native staking option: For users who prefer no smart contract risk, Marinade offers native staking without issuing mSOL.
• Institutional support: Marinade works with custodians and institutions for secure and customized staking solutions.

In summary, Marinade staked SOL allows you to earn staking rewards on your SOL while keeping your tokens liquid and usable in DeFi, all while supporting the Solana network’s decentralization and security.

Benefits

• Marinade staked SOL lets you earn staking rewards while keeping liquidity through mSOL tokens, which you can use in DeFi or trade anytime.
• It automatically spreads your stake across many top-performing validators, helping optimize rewards and support network decentralization.
• The platform offers an easy-to-use dashboard with estimated rewards and staking management.
• Marinade has a native staking option without smart contract risk, giving users more security.
• You stay in control of your assets at all times, with no lockups.
• The protocol is audited multiple times and has a bug bounty program to maintain security.
• You can unstake either immediately (with a small fee) or with a delay (no fee).
• Holding mSOL allows you to earn staking rewards plus additional yield opportunities in DeFi.
• Marinade distributes stake to reduce concentration risk and improve validator performance.

Drawbacks

• Using Marinade staked SOL involves smart contract exposure, which carries some protocol risk.
• There is a small fee charged by the protocol on staking rewards.
• Immediate unstaking requires paying a fee to liquidity providers.
• The value of mSOL can be more volatile than SOL because it is a derivative token.
• If a validator stops performing, your stake may not earn rewards until rebalanced.
• Some users report slightly lower APY compared to direct staking due to fees and protocol costs.
• Unstaking SOL directly (without liquid staking) takes up to 2-3 days to complete.
• There is a risk, though low, that the protocol could be hacked or have bugs affecting your funds.

Overall, Marinade staked SOL offers a flexible and user-friendly way to stake SOL with liquidity benefits and optimized rewards, balanced by some fees and smart contract risks.

Founders of Marinade staked SOL

Marinade staked SOL was founded by a team of experienced blockchain developers and entrepreneurs including Illia Polosukhin, who is the Co-founder and CTO, and Yuriy Shylenok, the Co-founder and Product Lead. Illia Polosukhin is known for his expertise in building scalable technology solutions, while Yuriy Shylenok focuses on user experience and community engagement.

Additional Context

• Marinade was founded during the March 2021 Solana x Serum Hackathon.
• The project has grown to be a leading liquid staking protocol on Solana, supported by the Solana Foundation.
• It offers users the ability to stake SOL and receive mSOL tokens, which represent their staked SOL and can be used in DeFi.

Investors in Marinade staked SOL

Marinade staked SOL has no venture capital (VC) investors and is self-funded. It is supported by a strong community and has been audited by credible security firms like Kudelski Security and Ackee Blockchain. The project also received support through the Solana X Serum Hackathon grant award.

Institutional and Corporate Investors

• VisionSys AI, a Nasdaq-listed company, announced a $2 billion Solana treasury strategy, planning to acquire and stake $500 million in SOL managed by Marinade.
• Grayscale has activated staking for its $GSOL Solana Trust, allowing investors to earn staking rewards through a regulated product.
• Canary Capital partnered with Marinade Finance as the exclusive staking provider for its U.S. Solana Staking ETF.
• FalconX, a digital asset prime brokerage, joined Liquid Collective to provide institutional clients access to liquid staking options including Marinade staked SOL.

Community and Governance

Marinade Finance introduced the MNDE governance token, distributed to early users and liquidity providers to decentralize control over the protocol. The governance and community play a key role in the project’s development and validator selection.

In summary, Marinade staked SOL is backed by a strong community, institutional partnerships, and corporate investors, but it does not have traditional VC investors.

Halal Status

Yes, Marinade staked SOL is considered halal.

Reasoning

Marinade staked SOL uses a Proof of Stake (PoS) mechanism on the Solana blockchain, which allows users to stake their SOL tokens and earn rewards based on network participation rather than interest (riba). The staking rewards come from validator performance and network security contributions, aligning with Shariah principles. Additionally, Marinade operates transparently with a DAO governance model and supports decentralization by distributing stakes across many validators. This structure avoids elements like gambling (maysir) or excessive uncertainty (gharar), making it permissible under Islamic finance guidelines.