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Marinade Finance looks to boost liquid staking on Solana

Marinade Finance will reward Solana holders who stake SOL via its liquid protocol. The incentive program will run for the next 12 months and see the plaform offer up to 160 million native Marinade tokens. The goal is to grow Solana TVL by 40 million SOL, and liquid staking is key to that. Marinade Finance, […]

The post Marinade Finance looks to boost liquid staking on Solana appeared first on CoinJournal.

  • Marinade Finance will reward Solana holders who stake SOL via its liquid protocol.
  • The incentive program will run for the next 12 months and see the plaform offer up to 160 million native Marinade tokens.
  • The goal is to grow Solana TVL by 40 million SOL, and liquid staking is key to that.

Marinade Finance, a liquid staking platform that supports the Solana blockchain, is looking to bring more liquidity to the Solana ecosystem via a major incentive program.

The protocol noted in an announcement that the program “Open Doors” is designed to incentivise Solana builders, validators and wallets into increasing the blockchain platform’s asset liquidity. 

Accordingly, Marinade is looking to offer rewards in the form of its tokens to users who contribute to growing the total value locked (TVL) of Solana on the protocol.

Marinade Finance’s 12-month incentive program for Solana

Over the next 12 months, users have a chance to earn some of the 160 million Marinade (MNDE) tokens when they deposit SOL for mSOL, the liquid staking token they will get in exchange. The target is to get 40 million SOL staked for mSOL, – a scenario that could significantly increase the ecosystem’s liquidity and help with decentralisation.

Currently, only 2-3% of SOL is reportedly in liquid staking, which makes the plan to have more brought into the ecosystem crucial for Solana. This is because staked SOL doesn’t contribute to Solana’s DeFi TVL. However, mSOL’s liquid stake does as it flows across different protocols. 

As for decentralisation, Marinade supports hundreds of validators staking through its delegation strategy.

For Solana DeFi to rebound stronger, more $SOL (LOTS MORE) must be made liquid. Those who contribute this through $mSOL, on their protocols, or via the referral program will be rewarded with direct Marinade ownership,” the Marinade team said.

According to data from DeFiLlama, the Solana chain has about $278 million in TVL as of 25 January 2023, down from over $10 billion in November 2021. More than 53% of the total TVL on this chain is on Marinade Finance, while Lido’s liquid staking accounts for the second-largest share.

The post Marinade Finance looks to boost liquid staking on Solana appeared first on CoinJournal.

Source: CoinJournal: Latest Bitcoin, Ethereum & Crypto News

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4 bearish factors for Bitcoin this week

The Federal Reserve meeting scheduled on Wednesday may be hawkish for the dollar Bitcoin might give up some of its 2023 gains on a hawkish Fed All eyes are on the Fed’s view on inflation, growth, future interest rates, and quantitative tightening The Federal Reserve’s monetary policy decision is scheduled this week. It is the […]

The post 4 bearish factors for Bitcoin this week appeared first on CoinJournal.

  • The Federal Reserve meeting scheduled on Wednesday may be hawkish for the dollar
  • Bitcoin might give up some of its 2023 gains on a hawkish Fed
  • All eyes are on the Fed’s view on inflation, growth, future interest rates, and quantitative tightening

The Federal Reserve’s monetary policy decision is scheduled this week. It is the first time the FOMC (Federal Open Market Committee) meets in 2023, and the stakes are high for the US dollar.

Bitcoin has strengthened against the US dollar in January so far, in sync with other fiat currencies. Therefore, whatever the Fed decides on Wednesday will affect Bitcoin price too.

A hawkish Fed may turn up being bearish for Bitcoin. These are the four areas where the Fed may express its hawkishness: inflation outlook, growth outlook, interest rates level, and quantitative tightening.

Inflation outlook

The Fed is committed to bringing inflation to its 2% target. This is why it has raised rates so aggressively, so if the Fed says that inflation is embedded and upside risks remain, then the US dollar should move higher.

In this scenario, the market will bet that the Fed sees ongoing rate hikes as appropriate.

Growth outlook

The currency stance is that a sustained period of below-trend growth is likely. If the Fed changed its view and sees recession required to have a material impact on the inflation outlook, that would also trigger a sharp move higher in the dollar.

Interest rates

Ultimately, it is all about the interest rate level. The funds rate range has reached 4.25%-4.50%, and all eyes are on what the Fed does and says on Wednesday.

The base case scenario is that the Fed will hike by 25bp and says that ongoing interest rate increases are appropriate. Therefore, anything more than that should be bullish for the dollar and bearish for Bitcoin.

For example, the Fed might hike 50bp. This is a risk going into the meeting, especially considering that inflation is not backing down as fast as initially thought.

Quantitative tightening

The Fed currently shrinks the balance sheet at a pace of $95 billion/month. A decision to accelerate the balance sheet reduction would be very hawkish for the dollar.

The post 4 bearish factors for Bitcoin this week appeared first on CoinJournal.

Source: CoinJournal: Latest Bitcoin, Ethereum & Crypto News

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