Produced by: DODOResearch
Author: dt
Editor: Lisa
This week, with the news of the Bitcoin spot ETF, the overall blockchain market sentiment has been bullish. Among the top ten in market capitalization, apart from the main character BTC, the token with the highest increase is the Solana protocol token $SOL.
Source: https://www.coingecko.com/
During last year's FTX crash, Solana suffered significant damage, not only due to the sharp drop in the $SOL token, but also because of the liquidity of the on-chain ecosystem and the mapping of cross-chain tokens such as soBTC, soETH, and the underlying DEX protocol Serum, all of which were provided or sponsored by FTX. The crash led to the withdrawal of liquidity, the mapping tokens going to zero, and the security risks of the underlying liquidity protocol Serum, causing Solana's TVL to plummet from a billion dollars before the event to a low of two hundred million dollars.
However, with the unwavering support of the Solana community members and continuous efforts by the foundation, nearly a year after the FTX crash, Solana has not only seen the price of the $SOL token rise to nearly the pre-event level, but the on-chain TVL of Solana has also risen by nearly 90% from the low point at the beginning of the year, from two hundred million dollars to the current three hundred and eighty million dollars.
Source: https://defillama.com/chain/Solana
In such a difficult environment this year, the best-performing protocol in the Solana ecosystem is undoubtedly Jito. Jito went live on the mainnet in November 2022, the most difficult period after the FTX crash. Its TVL has grown from an initial four million dollars to over a hundred million dollars in just one year, ranking second in on-chain TVL only after the Solana liquidity staking protocol Marinade Finance.
Source: https://defillama.com
This week's CryptoSnap by Dr.DODO introduces the most rapidly rising protocol in today's Solana Defi ecosystem, Jito, allowing everyone to explore what magic allows Jito to perform so well in the current unfavorable market environment and within the already challenging Solana ecosystem.
What is Jito?
Jito is a liquidity staking protocol launched by Jito Lab. In August 2022, the Jito Lab team received a $10 million Series A investment led by Multicoin Capital and Framework Ventures, with participation from Solana Ventures and co-founder of Solana Labs, Anatoly Yakovenko.
Jito calls itself the first staking product on Solana to include MEV rewards. Unlike other existing liquidity staking protocols, Jito offers stakers rewards not only in staking income but also additional MEV rewards. In addition to focusing on the liquidity staking track, Jito Lab also pays attention to the MEV track. It is the development team behind Jito-Solana, the first third-party validator client on Solana. Through the architecture of Jito-Solana, it will be able to effectively capture MEV income in the Solana network and reduce the likelihood of the entire Solana blockchain crashing due to ineffective tx dust attacks.
The Jito-Solana client introduces an auction mechanism similar to the Flashbot auction on the Ethereum mainnet. Traders submit bids for sequences of transactions they believe to be profitable, which are then run through complex simulations by a third-party block engine to find the most valuable transaction combinations. These bids are then allocated to validators and token holders (JitoSOL), eliminating tx dust attacks and increasing rewards for token holders.
Source: https://www.jito.network/blog/jito-solana-is-now-open-source/
Flashbot + Lido = Jito
In the "October 2023 Blockchain Validator Health Report" recently released by the Solana Foundation, since its initial launch in August 2022, the network share of Jito Labs' client Jito-Solana has increased from 0% to 31%, making it the only third-party client at present. The auction mechanism brought by Jito-Solana has successfully opened up differences from official validators and has attracted many stakers.
Source: https://solana.com/news/validator-health-report-october-2023
The emergence of Jito not only solves the MEV problem that has been troubling the Solana blockchain, but also reduces the crashing problems caused by congestion on the Solana blockchain. With Lido announcing its exit from the Solana staking field, Jito is expected to gain more Sol staking shares.
In addition, the fact that Jito does not yet have governance tokens has also attracted many airdrop hunters to participate. Currently, Jito is running a points activity, where holding JitoSOL and depositing JitoSOL into lending platforms or providing liquidity can earn points. There is also a referral mechanism, where referring more people can earn higher points.
Author's Opinion
The author believes that the Solana ecosystem is definitely an area worth paying attention to. After a year of downturn, projects that are not favored by the community or have not taken action have already been eliminated. The protocols that can survive represent strong community support and continuous delivery by the development team. Among these projects, those that have not yet issued tokens are even more worth participating in.
Therefore, the introduction of the Jito protocol this time is also because of the above three points that have caught the author's attention. The author believes that Jito can be said to be a game-changer on Solana, with tremendous potential. In addition to Jito, kamino and marginfi are also on the author's watchlist and meet the above three criteria, and are worth everyone's attention and participation.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
