Marinade Staked SOL (MSOL) is a product of Marinade.finance, a liquid staking protocol built on the Solana blockchain. MSOL is a tokenized representation of staked SOL tokens within the Marinade ecosystem. Users stake their SOL tokens with Marinade, which employs automated staking strategies to delegate the SOL to validators. In return, users receive MSOL tokens that they can utilize within the decentralized finance (DeFi) space or swap back to original SOL tokens at any time. The protocol aims to enhance the utility of SOL tokens by allowing them to be staked and used simultaneously, thereby contributing to the security and decentralization of the Solana network.

Marinade Staked SOL operates through a process known as liquid staking. Users stake their SOL tokens with Marinade, which then delegates these tokens to a pool of high-performing Solana validators using an automated staking strategy. In return, users receive an equivalent value of MSOL tokens. The price of MSOL increases relative to SOL with each Solana epoch as inflation rewards are accrued into the underlying staked SOL in the Marinade stake pool. Users can withdraw their SOL by unstaking and waiting for the unlock period or, if liquid staking, immediately with a small fee. MSOL tokens can also be exchanged directly for SOL on secondary markets at the current market rate.

Marinade Staked SOL (MSOL) seeks to provide users with the ability to participate in the DeFi space while simultaneously staking their SOL tokens. This dual functionality aims to increase the utility and flexibility of SOL tokens. Users can stake their SOL tokens in exchange for MSOL, which can then be used in various DeFi applications. Additionally, MSOL holders can participate in the Marinade DAO governance, influencing the future direction of the protocol. MSOL tokens can also be exchanged directly for SOL on secondary markets, providing additional liquidity options for users.

Marinade.finance, the protocol behind Marinade Staked SOL (MSOL), was founded through Solana ecosystem grants at the Solana Hackathon in 2021. The protocol launched its liquid staking protocol and the MSOL liquid staking token on the mainnet in August of the same year. The MNDE governance token was minted on November 7, 2021, as a fair-launch token with no Initial Coin Offering (ICO). In April 2022, Marinade launched on-chain DAO governance, and since then, all decisions related to the treasury have been voted on chain. In July 2023, the DAO migrated its governance platform to Realms, enabling direct control of the treasury and protocol decisions by MNDE holders.

Yield farming is a strategy that involves staking or lending cryptocurrency assets on a decentralized finance (DeFi) platform with the aim of potentially receiving additional cryptocurrency. This approach has gained attention due to its applications in liquidity mining, a process that involves lending crypto assets to a decentralized exchange in return for non-monetary incentives. Yield farming enables participants to contribute to liquidity by placing coins or tokens in a decentralized application, thereby providing liquidity to various token pairs. Some examples of these are cryptocurrency wallets, decentralized exchanges (DEXs), and decentralized communication platforms. Participants typically rely on DEXs to lend, borrow, or stake coins, an activity that allows them to receive non-monetary incentives and observe price fluctuations. Smart contracts across DeFi facilitate yield farming. Various protocols are utilized within the yield farming landscape.

When participating in the Marinade Staked SOL program, like any other cryptocurrency program, there are certain risks and considerations to be aware of. One of the primary risks is the smart contract risk that comes with liquid staking and engaging in DeFi. This risk is due to the potential for exploits or the inability to access assets because of issues with the smart contract. Another consideration is the charges that come with the program. Users incur charges on rewards and instant unstaking. This is a common practice among all liquid staking providers. The integration of wallets and ledgers with Marinade Native is not yet fully established. This means that users have to interact with the dApp directly. Finally, the outcomes from participation can be unpredictable and constantly changing. This could affect the anticipated non-monetary outcomes. It's crucial for users to understand these risks and considerations before participating in the Marinade Staked SOL program.

The Annual Percentage Rate (APR) for MSOL staking is determined by a formula that considers several factors. This formula includes the total supply of MSOL, the network's inflation rate, the ratio of bonded tokens, and the validator's commission fee. The formula is as follows: APR = ((Fees + Non-monetary Rewards / Principal) / n) * 365 * 100, where Non-monetary Rewards are the total non-financial incentives received over the period, Principal is the initial amount staked, and n is the number of days in the staking term. It's important to note that this calculation primarily considers the inflation factor on a blockchain. Therefore, the total non-financial incentives a user receives may exceed the APR's projection when the network's transaction processing incentives are distributed.

Users have the option to unstake their SOL from Marinade either immediately or by waiting until the conclusion of the next epoch. For immediate unstaking, a charge is applied which can range from 0.1% to 9%, this is dependent on the total liquidity in the Marinade pool and the amount being unstaked. If the liquidity in the Marinade pool remains at the target of 56,000 SOL after unstaking, the charge will be 0.1%. However, if the liquidity drops below this target, the charge is calculated using a specific formula. Users also have the option to unstake without incurring a charge by waiting for the next epoch to end, this typically takes between 1-2 days. After unstaking, users can retrieve their SOL and non-monetary incentives.

When participating in the Marinade Staked SOL program, users may have the opportunity to receive several incentives and rewards. Users have the option to stake their SOL tokens and in return, they may receive non-monetary incentives for validating the Solana network. This process strives to allow users to maintain liquidity with mSOL, a derivative token that represents their staked SOL. This mSOL token could potentially be used in various DeFi applications, aiming to diversify the utility for the user. Marinade has an incentive program known as Marinade Earn, which provides non-monetary incentives to users for staking SOL and referring friends. These incentives are provided in the form of the native token MNDE, which governs Marinade's DAO. Users may also experience an automatic rebalancing of their staked assets, which seeks to enhance their staking experience without the need for manual intervention.

Obtaining non-monetary benefits through staking Marinade Staked SOL (MSOL) is a straightforward process. When you stake your SOL tokens with Marinade Finance, you obtain MSOL tokens in exchange. These tokens represent your share of the staked SOL in Marinade's stake pool. As non-monetary benefits are obtained from staking, the ratio of MSOL to SOL may vary. When you decide to unstake your MSOL, you can exchange it for an equivalent amount of SOL along with non-monetary benefits. If you choose the delayed unstake option, you will need to return to the Marinade platform to claim your SOL. If you opt for instant unstake, your SOL and non-monetary benefits (minus a small fee) will be sent to your wallet immediately. This process allows you to obtain non-monetary benefits from staking while maintaining accessibility to your tokens.