Author: Alex Liu, Foresight News
The Solana liquid staking protocol Jito opened its first phase of reStaking deposits last night at 11:00 PM, and reached its deposit limit of 147,000 SOL (about $25 million) in just a few hours. Following the reStaking on Ethereum, the hot new track of "Solana reStaking" is evident.
The current Jito reStaking is composed of three vaults: kySOL (provided by Kyros), ezSOL (provided by Renzo), and fragSOL (provided by Fragmetric). The first two vaults provided enough time for users who want to deposit, while fragSOL was "peak from the start", with the 49,000 SOL quota being filled as soon as it opened. What's going on?
It turns out that Fragmetric did not open a new deposit quota in the Jito Vault, but directly deposited the SOL pre-deposited in the Phase 1 of the protocol. This liquid staking protocol, which went live on the mainnet only 6 days ago, has already reached the Phase 1 deposit limit, with a TVL of $8.4 million.
fragSOL
Let's skip the basic concepts and look at its core product fragSOL.
fragSOL is the first Liquid Restaking Token (LRT) on Solana. When users reStake SOL or other LST tokens (jitoSOL, mSOL, bSOL or INF) using the Fragmetric protocol, they will receive fragSOL. fragSOL represents the SOL or LST that the user has reStaked, providing Solana staking rewards, MEV rewards, and reStaking rewards from multiple protocols (including Jito, Solayer and Picasso, etc.).
In short, it's a nested doll, with higher returns.
Now let's go back to the concept, what exactly is reStaking on Solana, and what is LRT?
Restaking
ReStaking is the process of staking an asset that has already been staked (such as a liquid staking token, LST, jitoSOL) to enhance the security of a specific decentralized service. EigenLayer was the first company to propose this idea, and recently, many reStaking protocols have started accepting various types of assets (not just LST) as reStaking collateral. In addition to staking rewards, reStaking also allows users to earn additional fees from decentralized services.
Liquid Restaking Token (LRT)
LRT refers to SOL or LST that has been reStaked through a specific liquid staking protocol (such as Fragmetric). Like LST, LRT can be used in various DeFi protocols. With Fragmetric's first LRT, fragSOL, users can earn additional income through reStaking on top of the existing Solana validation and MEV rewards.
Team Characteristics
A major feature of the Fragmetric team is that they are quite "Solana Native", with the founders and team members mostly wearing "Mad Lads" NFT profile pictures, looking like family members who built (or were trapped) with the editor.
Due to their deep involvement in the Solana ecosystem, they have established early partnerships with many core projects (Jito, Sonic, Backpack).
Participation Guide
Although Phase 1 is currently full (note that Phase 1 is in a non-withdrawable state, withdrawals will be opened in Phase 2), the team has announced that the Phase 1 quota will be increased in mid-November.
Using the Backpack wallet to participate in Fragmetric will get a 1.3x bonus.
If you hold a Mad Lads NFT, joining the project's Discord will allow you to access a dedicated chat channel and get a special role, with the expectation of airdrops.
