Solana’s largest liquid staking projects is taking the leap into restaking.
The Jito Foundation posted a blog earlier today announcing that they had released code for Jito Restaking. The Jito Foundation is now in a leading position to develop restaking for Solana as its fast, low-cost DeFi network continues to grow.
Restaking involves using crypto that has been staked to protect other blockchain services and apps, thereby theoretically increasing the level of security in the blockchain base layer. Theoretically, this would allow unproductive assets to be put to good use. It could also make the proof-of stake systems more efficient.
Eigen Labs was the first to introduce this concept with EigenLayer on Ethereum. This has attracted billions of dollars in deposits, on top of an investment by a16z worth $100 million.
Restaking has not yet been enabled on Solana. However, Jito’s release of its codebase is a significant step in the right direction. Solayer has been a significant competitor. It has generated a great deal of interest when it took deposits. Solayer does not have any code in its GitHub repository for the restaking software.
Jito’s pivot restaking combines one of Solana’s most prominent pillars and one of cryptocurrency’s most buzzed-about narratives. Jito forks the Solana Labs original validator client, with modifications that allow for maximum extractible value. The MEV is quite profitable for validators who use the Jito-Solana Client. Jito’s co-founder Lucas Bruder revealed on X that a validator had earned a tip of $311,000 on a recent transaction.
JitoSOL liquid is awarded to users that stake Solana Tokens through Jito’s liquid staking pools. JitoSOL is also a staking reward and can be used anywhere in DeFi. This is a pool that’s the biggest on the entire network. JitoSOL is the dominant liquid stake token on Solana since its launch in November 20, 2022. It represents roughly 45% percent of all liquid stake tokens. Note that only 6% of staked SOL are liquid staking tokens.
Jito’s restaking, which was described in a blog on Thursday, has a similar nomenclature as EigenLayer. Operators of nodes can allow stakeholders to restake the assets they use to secure Actively Validated Services (AVSs). Misbehaving nodes can be removed.
EigenLayer accepts only EIGEN, staked or liquid-staked ether and any other token that uses the Solana standard.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
