Marinade, Solana’s pioneering liquid and native staking protocol, has introduced the Stake Auction Marketplace (SAM) as part of its V2 upgrade.
As reported in a press release, SAM represents the latest enhancement in V2, succeeding the launch of Marinade Native and Protected Staking Rewards (PSR).
SAM functions as an open public auction platform where SOL stakers delegate their tokens for validators to bid on. This innovation aims to empower users in maximizing staking yields and enhancing Solana’s decentralization efforts.
Live auctions are scheduled to commence in August, with bid distributions slated for the fourth quarter.
The team emphasizes that SAM’s launch will promote stability and censorship resistance in Solana staking, ensuring participants receive optimal staking rewards.
In a significant step, the team plans to unveil a SAM simulation by the end of June, testing for the most efficient user interface.
Addressing Major Staking Issues
The announcement highlighted several key challenges currently faced by stakers. One major issue identified is the need for manual monitoring of validator performance, described as “incredibly confusing and inefficient.” Security vulnerabilities were also noted as another concern. Additionally, stakers often experience irreversible losses in rewards when validators underperform or if there are changes in node operator commissions.
To address these issues, the team introduced Marinade V2. The primary objective of Marinade V2 is to simplify the staking process, enhance security, and broaden accessibility.
As part of the solution, stakers participating in the SAM automatically delegate their stake to a decentralized market of validators through a bidding process. This feature aims to boost yields beyond the current APY of 9% typically offered by validators with a 0% commission.
Moreover, the annual percentage yield (APY) could potentially reach up to 9% when factoring in Maximal Extractable Value (MEV), priority fees, and other revenue streams.
Michael Repetny, Core Contributor at Marinade, emphasized that the release of Marinade V2 marks a significant achievement for both Marinade and Solana. He stated, “This is a major milestone for Marinade and Solana, as V2 constructs a seamless staking experience that fuels greater ecosystem participation.”
Repetny pointed out that Marinade is pioneering a new standard in Solana staking by mitigating smart contract risks through an automated delegation strategy. He highlighted, “The introduction of SAM will ultimately rebalance optimizing staking rewards for our users and support network decentralization simultaneously.”
In addition to Marinade V2, Marinade launched Marinade Native in July 2023. This product is noted as the first on Solana to provide the efficient and permissionless staking strategy of Marinade, but without relying on a liquid staking smart contract.