DeFi
Jito launches open source re-staking service for Solana
- The Jito Foundation has launched an open source resttaking service for Solana, allowing any asset to be used for economic security.
- Resttaking aims to improve Solana’s DeFi ecosystem and expand security features.
The Jito Foundation has made significant progress in Solana‘s blockchain by publishing the code for its staking and re-staking program. This development is a significant milestone for the Solana Networkintroducing its first-ever re-staking service and expanding economic security options for on-chain applications.
The re-stitching revolution
Retaking is a process by which blockchain networks use the value of other staked assets as collateral, ensuring honesty and security on the network. Jito’s open-source code allows protocols on Solana to implement mechanisms that provide economic security for actively validated services (AVS) using any crypto asset, a notable departure from EigenLayer’s Ethereum-based model, which limits collateral to ETH, ETH derivatives, and EIGEN tokens.
Lucas Bruder, contributor to Jito Network, highlighted the flexibility of this architecture. “The flexibility and customization enabled by this architecture will be particularly useful for the most important customer of these systems, the AVS,” Bruder said.
What Retaking Brought to Ethereum
Resttaking has already proven its potential on the Ethereum network, primarily through EigenLayer. Since its mainnet launch in June 2023, EigenLayer has become the second-largest protocol in DeFi, with a total value locked (TVL) of $15 billion. Clean diaperResttaking services have provided a robust security framework for Ethereum, using staked ETH and its derivatives as collateral to secure various applications.
This success on Ethereum highlights the potential benefits for Solana. With Jito’s open-source re-staking code, Solana can now offer similar, if not more versatile, security options for its protocols. This move will likely attract more developers and projects to Solana, improving its DeFi ecosystem and overall network security.
Jito Re-Staking Components
Jito’s re-staking service consists of two main components: the vault program and the re-staking program.
The Vault program is responsible for minting, burning, and delegating Jito’s Liquid Re-Staking Tokens (LRT). It supports all Solana Program Library (SPL) tokens as underlying assets, similar to Ethereum’s ERC-20 tokens.
The re-staking program manages Jito’s actively validated services (AVS) and handles reward distribution and penalty mitigation. AVS can borrow economic security from re-staking tokens, making the network more secure and rewarding users with additional yield.
Jito’s approach to resttaking also leverages staking rewards boosted by Maximum Extractable Value (MEV). Validators on Jito can earn higher yields from both staking rewards and MEV, potentially increasing validator revenue by 15% or more as adoption increases.
Market reaction and future outlook
Jito’s JTO token rallied after the announcement, rising 22.69% to $3.21 on Friday. Solana’s SOL also rose 6.34% on Friday, though this could be due to a general market rally. Jito’s retaking code is currently open source and awaiting implementation on mainnet, which is expected later this year. While the code has yet to be audited, its release has positioned Jito as a leader in the Solana retaking race, ahead of other projects like Solayer.