Key Takeaways
- Marinade has launched Stake Auction Marketplace (SAM), an open public auction platform where stakers delegate their stake for validators to bid on.
- Stakers currently face the need to manually monitor validator performance, which can be cumbersome and inefficient. Additionally, they often experience losses in staking rewards due to underperforming validators or changes in commission rates.
- Marinade is the first to introduce an auction marketplace for staking SOL, so users can earn up to 9% APY when capturing all rewards including MEV and transaction fees.
Solana Staking Protocol Marinade has launched Stake Auction Marketplace (SAM) as a part of its V2 upgrade. This new platform revolutionizes how staking is conducted by introducing a public auction system where validators can bid for staked SOL, aiming to maximize user returns and enhance network stability.
Why does it matter? Historically, stakers have faced numerous challenges in managing their stakes, such as the need to continuously monitor validator performance, which can be both confusing and inefficient. This process has often led to security vulnerabilities and the loss of potential rewards due to underperforming validators or unexpected changes in node operator commissions.
Marinade’s latest feature, SAM, addresses these issues by automating the delegation of stakes in an open market where validators compete. This system not only simplifies the staking process but also aims to improve the annual percentage yield (APY) beyond the current rate of 9% available from staking with a 0% commission validator. The integration of additional revenue streams such as maximal extractable value (MEV) and priority fees could further boost this yield.
Michael Repetny, a core contributor at Marinade, emphasized the significance of this development: “This is a major milestone for Marinade and Solana, as V2 constructs a seamless staking experience that fuels greater ecosystem participation. Marinade is setting a new standard for Solana staking by eliminating smart contract risks through an automated delegation strategy.”
The launch of SAM is expected to not only offer the best staking rewards on the market but also to make staking operations on Solana more stable and censorship-resistant. The new feature underlines Marinade’s commitment to being a public good within the ecosystem, prioritizing community growth and network decentralization.
A simulation of the SAM platform is slated for release at the end of June, providing users an opportunity to interact with the interface and verify its efficiency. The live auctions are scheduled to commence in August, with bid distributions expected in the fourth quarter of the year.
Following the introduction of Marinade Native and Protected Staking Rewards (PSR), which guaranteed 100% of staker rewards and reduced staking risks, SAM represents a further enhancement in Marinade’s V2 upgrade.
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