Jito is a liquid staking protocol built on the Solana blockchain, enabling users to deposit SOL tokens and receive LSD (Liquid Staking Derivative) assets called JitoSOL—functionally similar to Ethereum's wstETH. By introducing its own client to capture MEV (Maximal Extractable Value) and implementing auction mechanisms to alleviate network congestion, Jito has rapidly grown to become the second-largest protocol by TVL in the Solana ecosystem, fueled by Solana's resurgence and lucrative token airdrops.
Introduction to Liquid Staking
The liquid staking sector gained significant traction last year, led by major players like Lido, Rocket Pool, and Frax. While Ethereum's staking rewards require high entry barriers, Solana offers lower thresholds with current staking yields around 6%. Key advantages of liquid staking include:
- Enhanced liquidity for staked assets.
- Protocol composability within DeFi ecosystems.
Unlike Ethereum's PoS, Solana uses DPoS consensus, where users delegate SOL to validators to earn inflation-based rewards. Key ecosystem participants:
- Validators: Process transactions and earn fees.
- Delegators: Receive SOL inflation rewards proportional to their stake.
- Users: Pay transaction fees (50% to nodes, 50% burned).
With Lido exiting Solana's liquid staking market, Jito has emerged as a dominant alternative, combining staking yields with innovative MEV solutions.
What Is Jito?
Jito is a Solana-native liquid staking protocol that:
- Issues JitoSOL tokens 1:1 against deposited SOL.
- Captures MEV rewards to boost staking yields.
- Reduces network congestion via auction-based transaction bundling.
Launched in November 2022 by an anonymous team, Jito secured $10M in Series A funding (led by Multicoin Capital) in August 2022. Its governance token, JTO, debuted in December 2023 alongside a 10% supply airdrop, accelerating TVL growth.
👉 Explore Jito's staking dashboard
How Liquid Staking Works
- Users deposit SOL → receive JitoSOL (accruing staking rewards over time).
- 4% annual fee on staking rewards.
- Two-day redemption period for unlocking SOL.
MEV Solutions
Jito's client tackles Solana's congestion by:
- Auctioning MEV bundles: Traders bid for block space, with validators and stakers sharing profits.
- Filtering spam transactions: Prioritizes high-value trades.
Key Data:
- Total validator rewards: 145,535 SOL
- MEV revenue: 1,619 SOL (minimal but mitigates network strain).
Decentralization via Jito StarkNet
To reduce centralization risks, Jito introduced:
- Validator History Program: Tracks validator performance over 3 years.
- Steward Program: Allocates stakes to top-performing validators.
JTO Tokenomics
- Total supply: 1 billion JTO.
Distribution:
- 34.3% → Community growth (incl. 10% airdrop).
- 24.5% → Core contributors.
- 25% → Ecosystem development.
- 16.2% → Investors.
Governance: JTO holders vote on staking pool fees.
Unlock schedule: Team/investor tokens vest over 1–3 years.
Current Growth Metrics
- TVL: $670M (Solana's #2 protocol).
- Peak stakers: 15,000+ weekly (November 2023 post-airdrop).
- Recent activity: ~100 weekly stakers (post-airdrop correction).
👉 Track Jito's real-time stats
Conclusion
Jito distinguishes itself by:
- MEV-driven yield optimization.
- Congestion-alleviating auctions.
- Rapid TVL growth amid Solana's revival.
Despite similarities to traditional liquid staking, its focus on scalability and decentralization positions Jito as a key Solana infrastructure player.
FAQ Section
Q: How does JitoSOL compare to stSOL or mSOL?
A: JitoSOL offers MEV-augmented yields and lower redemption times (2 days vs. 2–4 days for competitors).
Q: Is JitoSOL safe to hold long-term?
A: Yes, it’s backed 1:1 by SOL and audited for smart contract security.
Q: How do MEV rewards benefit small stakers?
A: Rewards are pooled and distributed proportionally to all JitoSOL holders.
Q: Can JTO tokens be staked?
A: Not currently, but governance participation earns potential future incentives.
Q: What’s the risk of centralization?
A: Jito StarkNet’s validator scoring system mitigates this by decentralizing stake allocation.
### Keywords:
- **Jito (JTO)**
- **Solana liquid staking**
- **JitoSOL**
- **MEV rewards**
- **Jito StarkNet**
- **Staking yields**
- **TVL growth**