MNDE Marinade

What is Marinade?

Marinade is a liquid staking protocol on the Solana blockchain. It allows users to stake their SOL tokens and earn rewards while maintaining liquidity.

Key Features

• Staking and Rewards: Users deposit SOL into Marinade and receive mSOL, which represents their staked SOL along with any accrued staking rewards or penalties.
• Liquidity: mSOL can be traded openly in DeFi protocols, allowing users to access their assets without waiting for the unbonding period.
• Instant Unstaking: Users can withdraw funds immediately by paying a fee of 0.3% to 3%, or use the delayed unstake feature to avoid fees but wait 1-2 epochs.
• Governance: The Marinade token (MNDE) is used for governance, enabling holders to vote on proposals to change the platform's parameters.
• Additional Yield: Users can maximize earnings by providing liquidity to the internal Unstake Liquidity pool or participating in other DeFi protocols with mSOL.

Benefits

• Passive Income: Marinade makes it simple for SOL token holders to earn a passive income via liquid staking.
• Decentralization: By participating in liquid staking with Marinade, users help maintain the Solana blockchain’s decentralization.
• Flexibility: Marinade offers a flexible staking solution that makes earning a passive income with crypto straightforward.

Pros of Marinade

• Optimized Validator Automation: Marinade ensures that your staked assets generate competitive interest through automated validator designation, optimizing your staking yield without manual intervention.
• Instant Unstaking: Users have maximum flexibility over their assets with the ability to instantly unstake at any time, addressing a common drawback of traditional staking.
• Native Staking: Marinade offers native staking, which removes smart contract risk, making it particularly appealing to institutional investors. This feature also allows investors with locked SOL, such as VCs and grant recipients, to participate.
• Liquid Staking: Marinade issues mSOL tokens for staked SOL, which can be used in DeFi applications to earn additional yield, providing liquidity and flexibility.
• No Lockup Periods: Users can stake and unstake without fees, maintaining full control over their tokens and associated accounts.

Cons of Marinade

• Dependence on Solana Ecosystem: Marinade's success is closely tied to the health and performance of the Solana network, making it vulnerable to any challenges or downturns in the Solana ecosystem.
• Limited to SOL Tokens: Marinade is specifically designed for staking SOL tokens, limiting its utility for users interested in staking other cryptocurrencies.
• Market Volatility: Like all crypto-related projects, Marinade is subject to market volatility, which can affect the value of staked SOL and mSOL tokens.

Founders of Marinade

The founders of Marinade include Lucio Tato, who is also a co-founder of Meta Protocol, a liquid staking protocol on the Near blockchain. The team was formed during a Solana hackathon in 2021, where two teams collaborated on a liquid staking project and received $80,000 from the hackathon. This early start allowed Marinade to become the first liquid staking token live on the Solana mainnet in August 2021.

Investors in Marinade

Marinade does not have traditional investors such as venture capitalists (VCs). Instead, it was primarily funded by grants from the Project Serum and Solana Foundation, totaling $80,000. This approach was chosen to keep the project open-source and community-driven, without any private sales or seed rounds.

Halal Status of Marinade

• Halal Status: Yes
• Reason: Marinade is considered halal because it operates on a staking mechanism that supports the Solana blockchain network, enhancing decentralization and security. The protocol does not involve interest (riba) or excessive uncertainty, and it is governed by a DAO structure with a fair token distribution. The primary purpose of Marinade is to provide liquid staking services, allowing users to earn staking rewards while maintaining liquidity of their assets, which aligns with Islamic finance principles.