By Alex Liu, Foresight News
Solana’s liquidity staking protocol Jito launched its first phase of re-staking deposits at 11:00 last night, and reached its deposit limit of 147,000 SOL (about 25 million US dollars) in just a few hours. Following Ethereum’s re-staking, the popularity of the new track of “Solana re-staking” is evident.
Jito currently has three vaults for staking: kySOL (provided by Kyros), ezSOL (provided by Renzo), and fragSOL (provided by Fragmetric). The first two vaults provide enough time for users who want to deposit to participate, but fragSOL is "peaking from the start", and it shows that the 49,000 SOL quota has been fully deposited as soon as it is opened. What's going on?
It turns out that Fragmetric did not open a new deposit limit in Jito Vault, but directly deposited the SOL pre-deposited in Phase 1 of the protocol. This liquidity re-pledge protocol, which was launched on the mainnet only 6 days ago, has already reached the Phase 1 deposit limit, with a TVL of 8.4 million US dollars.
fragSOL
Let’s skip the basic concepts and look at its core product, fragSOL.
fragSOL is the first Liquid Restaking Token (LRT) on Solana. When users restake SOL or other LST tokens (jitoSOL, mSOL, bSOL, or INF) using the Fragmetric protocol, they will receive fragSOL. fragSOL represents the user's re-staked SOL or LST, providing Solana staking income, MEV rewards, and restaking income from multiple protocols (including Jito, Solayer, Picasso, etc.).
In short, the more babies you have, the higher the returns you will get.
Now let’s get back to the concept. What exactly is re-staking on Solana and what is LRT?
Restaking
Restaking is the process of enhancing the security of a specific decentralized service by staking an asset that has already been staked once (e.g. Liquidity Staking Tokens, LST, jitoSOL). EigenLayer was the first to come up with this idea, and recently, many restaking protocols have begun accepting various types of assets (not just LST) as restaking collateral. In addition to staking rewards, restaking allows users to earn additional fees from decentralized services.
Liquidity Re-Staking Token (LRT)
LRT refers to SOL or LST that is re-staked through a specific liquidity re-staking protocol such as Fragmetric. Like LST, LRT can be used in various DeFi protocols. With Fragmetric's first LRT, fragSOL, users can earn additional income through re-staking on top of their existing Solana validation and MEV rewards.
Team Characteristics
A major feature of the Fragmetric team is that they are more "Solana Native". Most of the founders and team members have a PFP (avatar) of the "Mad Lads" NFT, and they can be seen at first glance as family members who have built (been trapped) with the editor.
Due to their deep involvement in the Solana ecosystem, they have established early partnerships with many core projects (Jito, Sonic, Backpack).
Participation Guide
Although Phase 1 is currently full (note that Phase 1 is in a state where withdrawals are not possible and withdrawals will be allowed in Phase 2), the team has announced that the limit for Phase 1 will be increased in mid-November.
Participating in Fragmetric using Backpack wallet will receive 1.3 times the points bonus.
If you hold Mad Lads NFT, you can join the project Discord to join the exclusive chat channel and obtain an exclusive character, and there is an expectation of airdrops.
