Overview
Jito is the dominant liquid staking protocol on Solana, allowing users to stake SOL and receive JitoSOL, a liquid staking token that captures both base staking rewards and MEV (Maximal Extractable Value) tips. Launched in late 2022, Jito quickly rose to prominence by being the first Solana LST to directly integrate MEV revenue sharing, offering higher yields than traditional SOL staking.
The protocol operates alongside the Jito-Solana validator client, a modified Solana validator that includes a block engine and MEV auction system. This infrastructure layer has become widely adopted among Solana validators, giving Jito significant influence over the Solana MEV supply chain.
As of early 2026, Jito holds approximately $2-3 billion in TVL and represents a substantial portion of liquid-staked SOL. The JTO governance token was airdropped in December 2023 and governs the protocol's parameters and treasury.
Smart Contracts
Architecture
Jito's stake pool program is built on Solana's SPL Stake Pool standard with custom modifications for MEV distribution. The architecture includes a stake pool manager, validator delegation strategy, and a tip distribution program that routes MEV auction proceeds to JitoSOL holders. Solana's account model differs fundamentally from Ethereum's contract model, requiring different security considerations.
Code Quality
The codebase is open source and has been audited by Neodyme and other Solana-focused auditors. Solana program auditing is a less mature discipline than Ethereum smart contract auditing, with fewer specialized firms and less established tooling. Test coverage is adequate but the broader Solana development ecosystem has fewer formal verification tools.
Upgradeability
Solana programs can be marked as upgradeable with designated upgrade authorities. Jito's programs use multisig-controlled upgrade authority. The upgrade process is less transparent than Ethereum's on-chain governance, relying on off-chain coordination and multisig execution.
Security
Validator Security
Jito delegates to a curated set of high-performance validators selected based on commission rates, performance metrics, and infrastructure quality. The delegation strategy aims to balance yield optimization with validator set diversity. Slashing on Solana is less formalized than on Ethereum, with network penalties primarily through missed slot deductions.
Operational Safety
The MEV infrastructure (block engine, auction system) introduces additional operational complexity. The tip distribution system must accurately allocate MEV proceeds. Multisig controls protect protocol parameters. The Jito Foundation oversees protocol operations and development.
Track Record
Jito has operated without a critical exploit since launch. However, in early 2024, Jito controversially shut down its mempool feature after community backlash regarding sandwich attacks on retail users. This demonstrated responsiveness to community concerns but also highlighted the centralized control over MEV infrastructure.
Decentralization
Validator Set
Jito delegates to approximately 200+ validators on Solana. While this is a meaningful number, validator selection is governed by the Jito team and foundation rather than a permissionless system. Solana's high hardware requirements (expensive servers, high bandwidth) naturally limit validator decentralization compared to Ethereum.
Market Share Risk
JitoSOL represents a significant portion of liquid-staked SOL on Solana. While concentration risk exists, it is less systemic than Lido's Ethereum dominance because Solana's consensus mechanism (proof-of-history + tower BFT) has different validator dynamics. However, Jito's MEV infrastructure dominance raises separate centralization concerns.
Governance
JTO token holders govern protocol parameters through on-chain voting. The Jito Foundation retains significant operational control. Governance participation has been moderate, typical of DeFi governance tokens. The airdrop distribution aimed for broad community ownership but early VC allocations are meaningful.
Adoption
TVL & Growth
Jito holds approximately $2-3 billion in TVL, making it the largest Solana liquid staking protocol. Growth accelerated significantly following the JTO airdrop and Solana's price recovery in 2024-2025. JitoSOL has become the default liquid-staked SOL for many DeFi users.
DeFi Integrations
JitoSOL is widely accepted across Solana DeFi — as collateral on Marginfi, Kamino, and Solend lending markets, as LP base on Raydium and Orca, and in yield aggregators like Marinade's native staking alternative. It is the most liquid SOL LST on the market.
Market Position
Jito is the clear market leader for Solana liquid staking, holding more TVL than Marinade Finance and other competitors. Its MEV-boosted yield and strong DeFi integrations create a compelling moat. The protocol also has strategic importance as Solana's primary MEV infrastructure provider.
Tokenomics
Token Overview
JTO is the governance token with a total supply of 1 billion. Distribution included a 10% community airdrop (December 2023), with remaining allocations to the team, investors (Multicoin Capital, Framework Ventures), and ecosystem development. Vesting schedules extend through 2027.
Fee Structure
Jito charges a 4% fee on staking rewards (lower than most Ethereum LSTs). This competitive rate is possible because MEV revenue supplements base staking yields, providing additional protocol income. The fee split goes to validators, the protocol treasury, and JTO stakers.
Yield Sustainability
JitoSOL yield combines Solana's base staking APY (~6-7%) with MEV tips, resulting in total yields of approximately 7-8%. MEV revenue depends on Solana network activity; during high-activity periods, the MEV boost is more significant. This creates variable but generally attractive yields compared to vanilla SOL staking.
Risk Factors
- Solana Network Risk: Solana has experienced multiple outages and performance degradations. Network instability directly impacts staking operations and JitoSOL usability.
- MEV Centralization: Jito's dominance of Solana MEV infrastructure creates centralization concerns; the block engine is a critical piece of infrastructure controlled by a single entity.
- Regulatory Risk: MEV extraction and distribution may face regulatory scrutiny as market manipulation in certain jurisdictions.
- Validator Hardware Requirements: Solana's high hardware requirements limit validator decentralization, concentrating stake among well-funded operators.
- Smart Contract Maturity: Solana's program ecosystem is younger and less battle-tested than Ethereum's, with fewer audit firms and formal verification tools.
Conclusion
Jito has established itself as the dominant liquid staking protocol on Solana, offering a compelling value proposition through MEV-boosted yields and deep DeFi integrations. The protocol's integration of MEV infrastructure with liquid staking is innovative and has created a strong competitive moat.
However, Jito inherits Solana's network-level risks, including historical outages and centralization concerns around hardware requirements. The protocol's control over Solana's MEV supply chain, while commercially valuable, raises questions about infrastructure centralization. The shutdown of the mempool feature demonstrated both responsiveness and centralized control.
For Solana ecosystem participants, JitoSOL remains the default choice for liquid staking with superior yields. Investors should weigh the Solana-specific risk profile — higher yields but greater network and operational uncertainty compared to Ethereum LSTs.