Overview
Marinade Finance is the oldest and most established liquid staking protocol on Solana, launched in August 2021. Users stake SOL and receive mSOL, a value-accruing liquid staking token. Marinade distinguishes itself through its automated delegation strategy that algorithmically distributes stake across hundreds of validators to maximize decentralization and network health.
In 2023, Marinade expanded its product offering with Marinade Native, which allows users to stake SOL directly to validators through Marinade's delegation strategy without receiving an LST — targeting institutional users and those preferring direct staking. This dual-product approach serves both DeFi-native and traditional staking users.
As of early 2026, Marinade holds approximately $1-1.5 billion in TVL across liquid and native staking products. While it pioneered Solana liquid staking, the protocol has lost market share to Jito, whose MEV-boosted yields attracted significant TVL migration.
Smart Contracts
Architecture
Marinade's core architecture consists of the stake pool program (managing SOL deposits and mSOL issuance), the delegation strategy algorithm, and the withdrawal system. The delegation strategy is a key differentiator — it uses scoring algorithms to distribute stake based on validator performance, commission, decentralization metrics, and stake concentration. Marinade Native uses a separate staking flow that delegates directly to validators without minting mSOL.
Code Quality
The protocol is fully open source and has been audited by Neodyme, Ackee Blockchain, and other Solana-focused auditors. As one of the earliest Solana DeFi protocols, it has been refined over multiple iterations. The codebase is mature by Solana standards, with the delegation strategy algorithm being the most complex component.
Upgradeability
Solana program upgrade authority is managed through a multisig controlled by the Marinade team and community members. The protocol has executed multiple upgrades since launch, including the addition of Marinade Native and improvements to the delegation algorithm. Upgrade processes follow standard Solana multisig patterns.
Security
Validator Security
Marinade's algorithmic delegation spreads stake across 400+ validators based on performance scoring. This is the most decentralized delegation strategy among Solana LSTs. Validators are automatically rebalanced based on performance — underperforming validators have stake removed, while high-quality validators receive additional delegation. This creates a self-correcting validator selection mechanism.
Operational Safety
The protocol uses multisig controls for administrative operations. The delegation algorithm runs off-chain and submits results on-chain. Oracle systems are used for performance monitoring. Marinade has established an emergency response process for network incidents, which has been tested during Solana's historical outages.
Track Record
Marinade has operated since August 2021, making it the longest-running Solana LST. It has navigated Solana's network outages, the FTX collapse, and multiple market cycles without a critical exploit. This multi-year track record on Solana is a meaningful differentiator, though the protocol has faced and resolved minor issues through its bug bounty program.
Decentralization
Validator Set
Marinade delegates to 400+ validators, more than any other Solana staking provider. The algorithmic delegation strategy actively penalizes stake concentration and rewards smaller, high-quality validators. This approach directly supports Solana network decentralization and has been recognized by the Solana Foundation as a model for healthy stake distribution.
Market Share Risk
Marinade holds approximately 5-7% of staked SOL, a meaningful but not dominant share. The protocol has lost relative market share to Jito but maintains a significant position. Its decentralization-focused approach means it poses minimal concentration risk to Solana's validator set.
Governance
MNDE token holders govern the protocol through governance proposals and voting. The Marinade DAO controls treasury allocation and protocol parameters. Governance participation has been moderate. The protocol has implemented directed stake programs where MNDE holders can influence delegation to specific validators, creating an additional governance utility.
Adoption
TVL & Growth
Marinade holds approximately $1-1.5 billion in TVL across liquid and native staking products. After peaking as the dominant Solana LST, growth stalled as Jito captured market share with MEV-boosted yields. Marinade Native has partially offset liquid staking TVL losses by attracting a different user segment.
DeFi Integrations
mSOL is widely integrated across Solana DeFi — accepted on Marginfi, Kamino, Solend, and other lending markets, and used as LP base on Raydium, Orca, and Jupiter. While integrations are strong, mSOL's DeFi footprint has been partially eclipsed by JitoSOL, which has become the preferred Solana LST for many users.
Market Position
Marinade is the second-largest Solana liquid staking protocol behind Jito. It maintains a loyal user base attracted to its decentralization ethos and long track record. The protocol's competitive position depends on its ability to differentiate through decentralization, validator health, and potential MEV integration or yield enhancements.
Tokenomics
Token Overview
MNDE is the governance token with a total supply of 1 billion. Distribution includes allocations to the team, investors, community incentives, and DAO treasury. MNDE provides governance voting power and can be used in directed stake programs. The token's value proposition is primarily governance utility rather than direct fee capture.
Fee Structure
Marinade charges a fee on staking rewards, currently around 6% on liquid staking and 0.1% on native staking. The liquid staking fee is competitive but higher than Jito's 4%. Native staking's minimal fee structure is designed to attract institutional and large-scale stakers.
Yield Sustainability
mSOL yield derives from Solana's base staking rewards (~6-7% APY). Unlike Jito, Marinade does not integrate MEV revenue directly into mSOL yields, resulting in slightly lower returns. This yield gap is the primary competitive disadvantage. The protocol has explored MEV integration and yield enhancement strategies to close this gap.
Risk Factors
- Competitive Pressure: Jito's MEV-boosted yields have captured significant market share. Without MEV integration, Marinade may continue losing relative position.
- Solana Network Risk: Solana's history of outages and performance issues directly impacts staking operations and mSOL usability.
- MNDE Token Utility: MNDE's value proposition is limited primarily to governance, with less clear fee capture or utility than some peer tokens.
- Off-Chain Delegation Algorithm: The delegation scoring runs off-chain, creating a trust assumption on the accuracy and integrity of the algorithm.
- Validator Quality Risk: Automated delegation to 400+ validators means some validators may underperform or behave poorly before being detected and removed.
Conclusion
Marinade Finance is the original Solana liquid staking protocol, with the longest track record and the most decentralized delegation strategy on the network. Its algorithmic distribution across 400+ validators is a genuine contribution to Solana's network health, and its 3+ year operational history provides confidence in protocol reliability.
The challenge for Marinade is competition. Jito's MEV-boosted yields offer a clear financial advantage that has driven meaningful TVL migration. Marinade's response — including Marinade Native, directed stake, and exploration of yield enhancements — shows adaptability, but the protocol needs to close the yield gap to regain growth momentum.
For Solana stakers who prioritize decentralization and network health, Marinade remains the ideal choice. For those optimizing purely for yield, Jito currently offers a superior product. The Solana staking ecosystem benefits from having both approaches competing for users.