TORTOLA, MARCH 11, 2023, Marinade Finance, Solana’s top decentralized finance (DeFi) project by total value locked (TVL), has teamed up with Kamino Finance to increase the use of liquid staking tokens on Solana.
As part of Marinade’s Open Doors Project, Kamino Finance has launched two new vaults featuring mSOL: Marinade’s liquid staking token, in less than a week. Kamino now joins a host of Solana’s leading DeFi projects that have also joined the Open Doors Program, including Orca, Raydium, Francium, Tulip, Port, Rain.fi and more.1
Around 16% of Marinade’s total supply of MNDE, the protocol’s governance token, has been allocated to the Open Doors Program. The project awards MNDE to DeFi protocols that promote use cases for mSOL. Launched in 2021, around 6.4 million SOL are staked with Marinade for mSOL at the time of writing, and Marinade has delegated its stake to over 450 validators.
While around 70% of SOL supply is currently staked, less than 3% is liquid. Increasing this threshold will boost the TVL in DeFi protocols on Solana, providing deeper liquidity for all users to access. Marinade says that, were 40 million locked SOL converted into mSOL, this could make close to $1 billion in liquid TVL available to Solana DeFi.
Commenting on the launch of Kamino’s mSOL vaults, Brandon Tucker, growth lead at Marinade Finance, says: “We are excited to welcome Kamino to the Open Doors Program with the launch of these new mSOL vaults. This project has the power to inject new life into Solana DeFi by mobilizing the incredible 67% of SOL that is currently sitting staked and illiquid. The more of this we can move into liquid staking, the faster we can get Solana DeFi back to where it deserves to be.”
Mark Hull, a Kamino core contributor, adds: “The Open Doors Project is an innovative way to incentivize projects and users to participate in liquid staking with mSOL. Staking is necessary to secure transactions on Solana, but this also takes a massive portion of SOL out of the DeFi arena. Marinade is really doing a huge service for the DeFi community on Solana by decentralizing the network with mSOL and pushing development with Open Doors.”
At the time of writing, mSOL vaults on Kamino represent around $500k of the protocol’s TVL. Kamino’s vaults automatically manage concentrated liquidity positions on Solana’s top DEXs by TVL, Orca and Raydium, reducing the barrier to entry for users to provide liquidity on these DEXs for tokens like mSOL.
1 Confirmed participants of the Marinade Open Doors Program: Raydium, Orca, Francium, Tulip, Port, Hubble and Kamino, PoolParty, Jet, SunriseStake, Lifinity, Meteora, Mrgn.fi, Hawksight, Cypher