TL;DR
Jito Network has offered unlimited staking power since it introduced the first Liquid Staking Tokens (JitoSOL) on Solana. Creating new opportunities and limitless potential for SOL liquidity. Jito Network’s expansion of the Solana Ecosystem is nothing short of amazing. Wrapping itself up like a warm blanket with only the strongest protocols on Solana. Is this enough to keep the Jito train going or is the project undeserving of all this hype? That’s the topic of today’s article.
Jito doesn’t care much for filler. Working alongside The Best Solana Project Kamino Finance, and others like Orca, Meteora, Raydium, Drift, MarginFi, Solend, Mango, and even Euphrates. An Acala/Polkadot-based protocol. This signifies that even protocols operating completely outside the Solana Ecosystem want to leverage the strength of Jito. That’s because the amount of value locked into JitoSOL is so much bigger than you’d expect. With 84% of all staked SOL represented by the JitoSOL token. This means there’s more SOL liquidity captured on Jito Validators than on Solana. Not by just a small amount either. Showcasing how undeniably important Jito Networks’ position is in the Solana Ecosystem.
What is Jito Network?
Based in Arlington Virginia, The Jito project started back in 2021 with a $12 million investment from Solana CEO Anatoly Yakovenko, Solana Ventures, Delphi Capital, Multicoin Capital, Framework Ventures, and Alameda Research (Yuck). Aside from that tiny imperfection. Jito’s had very little stopping its rise to the top of the Solana food chain. That’s because Jito’s focus wasn’t being a “staking” product as much as a value extraction tool. With the founders of Jito Labs making MEV their entire purpose of operation. As for what Jito actually does, that part is slightly less obvious. Let’s break it down.
With 13.3 million SOL being locked into Jito and turned into JitoSOL. Jito extracts value by bundling transactions together to save users money and lower the risk of front-running. This helps increase the amount of MEV (Maximal Extractable Value) on Solana by removing the funds normally stolen by bad actors and giving them back to real users.
To do this, Jito Network focuses on three major entry points that are normally exploited by front-runners. Starting with Validators, the Jito Network enables those who help secure Solana to earn up to three times more running a Validator on Jito than directly on Solana. This is why we now have considerably more Validators running staked JitoSOL than ever before. Searchers help bundle Solana transactions together and send this information to Validators. Helping to separate the two functions from one another. Running a special block engine integrated with the Jito-Solana validator client. This provides searchers with the first MEV infrastructure on Solana.
Known as Stakenet, Jito Networks brings everything together in an easy-to-access dashboard. Allowing those moving the Jito ball forward to monitor all activity on the network and take full advantage of these infrastructure tools to extract incredible value. Connecting the Jito Stakenet API to existing products like Kamino Finance means that information can be executed in a more secure and safe environment. Reducing the time of…
Head of Research Jesse is a passionate seeker of truth who enjoys educating others about Bitcoin. As a free thinker and 2nd amendment advocate, Jesse believes each individual has the right to monetary freedom. “The swarm is headed towards us” -Satoshi Nakamoto
