Jito

Staking

Jito is the first liquid staking service on Solana that distributes MEV rewards to holders.

Risk Rating
Good
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Jito is the first liquid staking service on Solana that combines MEV rewards with staking returns, offering JitoSOL holders a distinct advantage in the form of additional yield from MEV transactions on Solana.
What we like less
JitoSOL is built on the stake pool program developed by Solana Labs, who also owns the upgrade keys for this program.
What it means for you
Jito offers an opportunity to earn enhanced yields through a combination of traditional staking rewards and MEV profits, while remaining liquid.
Information
Exploit/Hacks
None
Info
Key Metrics
  • TVL: $1.1B (Rank #22)
  • TVL Ranking by Staking: #0
  • Blockchain: Solana
  • Chain TVL
    • Solana: $1.1B
Risk Assessment
Good
Protocol Code Quality
  • Code reviewed by several experienced auditors including Quantstamp, Kudelski, and OtterSec
  • Public team promotes accountability
  • No documented protocol hacks since launch
Protocol Maturity
  • Latest protocol version launched in 2022; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 1% by total value locked reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of at least 4 signers, which means the protocol is less susceptible to centralization risks
  • No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
  • No governance token and/or contracts are fully immutable
Protocol Design
  • No death spiral concerns
  • This protocol is susceptible to risks related to staking a token to secure a network, such as slashing events
Things to know about Jito

How Jito works

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.

How Jito makes money

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.

How you make money on Jito

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.