Research Summary
The report provides an in-depth analysis of Marinade’s performance in the liquid staking token (LST) market, its new product Marinade Native, and the impact of its incentive programs. It also discusses the competitive landscape, highlighting the rise of Jito as a significant competitor, and the potential for Marinade Native to become a significant revenue stream.
Key Takeaways
Marinade’s Performance and Incentive Programs
- Marinade’s Market Position: Despite a decline in its LST market share, Marinade has seen significant growth with its new product, Marinade Native. The protocol’s incentive programs, such as Marinade Earn Season 1 and 2, have been successful in distributing rewards to stakers and attracting more delegated stake.
- Marinade’s Revenue Streams: Marinade’s revenue comes from a 6% commission on rewards and fees from its instant unstake function. The growth of Marinade Native, which currently charges no fees, could potentially enhance the protocol’s revenue streams.
Marinade’s New Product: Marinade Native
- Marinade Native’s Features: Marinade Native offers an automated validator designation strategy, optimizing staking yield and enhancing network decentralization. It charges no performance or deposit fees and covers rebalancing fees between validators.
- Marinade Native’s Potential: Despite not generating fees for the protocol, Marinade Native’s growth could serve as a customer acquisition tool, potentially leading users to prefer Marinade’s liquid staking solutions (LST) in the future.
Competitive Landscape
- Rise of Jito: Jito has emerged as a significant competitor, capturing about 40% of the LST market share in a short time. Its DAO treasury, at $440M, dwarfs MNDE’s $167M, potentially enabling Jito to develop more aggressive incentive programs.
- Marinade’s Position: Despite the rise of Jito, Marinade retains a strong delegation strategy and a treasury of nearly $167M in MNDE for growth incentives. Its longer operational history and controllable parameters may help retain its user base.
Actionable Insights
- Monitor Marinade’s Performance: Keep an eye on Marinade’s performance in the LST market, especially in light of the rise of competitors like Jito. The success of Marinade’s incentive programs and the growth of Marinade Native could impact its market position.
- Assess the Potential of Marinade Native: Evaluate the potential of Marinade Native as a significant revenue stream for Marinade. Its advanced delegation strategy and attractive returns could increase the fundamental value of the token.
- Consider the Competitive Landscape: Consider the competitive landscape in the Solana LST market. The rise of alternative liquid staking protocols like Jito could pose risks to Marinade’s market share.
