Jito is the first liquid staking service on Solana that distributes MEV rewards to holders.
Jito operates as a unique liquid staking service on the Solana blockchain, offering users the opportunity to stake their Solana (SOL) tokens in exchange for JitoSOL, a liquid staking token. By staking SOL via Jito, users receive JitoSOL, which immediately begins accruing yield. This yield is derived from two primary sources: staking rewards and Maximum Extractable Value (MEV) rewards. JitoSOL holders benefit from the platform's distinctive approach, where Jito collaborates with validators that not only contribute to network performance but also partake in an auction-based system for efficient MEV extraction. This process not only enhances the yield for JitoSOL holders but also supports network health by reducing spam and congestion on Solana. Staking and unstaking processes on Jito are straightforward, though they adhere to Solana's native timelines, with a 1-2 epoch waiting period for unstaking. Additionally, Jito focuses on decentralization and performance in its validator selection, ensuring a transparent and permissionless delegation process.
Jito generates revenue by charging an annual management fee, which amounts to 4% of the total rewards (staking and MEV rewards). This fee is extracted after deducting the validators' commissions, translating to roughly 0.3% of the deposited SOL's value per year. Moreover, Jito imposes a 0.1% withdrawal fee for users who choose to directly unstake their SOL via the Jito website. This fee structure is an integral part of Jito's economic model, allowing it to maintain operational efficiency and provide its unique services. The platform also ensures that it collaborates with validators who offer competitive fees, thereby maximizing returns for JitoSOL holders.
As an investor or user of Jito, your earnings come from the appreciation in the value of JitoSOL, the platform's liquid staking token. This appreciation is a result of the accumulated staking and MEV rewards. The staking rewards are a share of the new Solana issuance distributed to validators, which is then passed on to stakers like you. MEV rewards represent a newer, innovative income stream, arising from trading profits based on specific transaction ordering or timing within the Solana network. JitoSOL's value increases in relation to SOL as these rewards accrue, ensuring that all holders benefit regardless of how they store or use their JitoSOL tokens. This unique combination of traditional staking rewards and MEV profits positions JitoSOL as a potentially lucrative investment in the DeFi space, especially for those looking to leverage Solana's growing ecosystem.