Fragmetric And Jito Partner To Introduce Liquid Restaking Token fragSOL
In Brief
Fragmetric and Jito launched Solana’s first native LRT, fragSOL to improve liquidity and composability for staked SOL assets.
Liquid restaking protocol Fragmetric on Solana announced that it had forged a partnership with the liquid staking protocol Jito to launch Solana’s first native Liquid Restaking Token (LRT), fragSOL. This partnership seeks to integrate restaking-based security finance into Solana by enabling liquid restaking and yield optimization. The new token is based on Jito’s (Re)staking Vault Receipt Token (VRT) and is set to improve liquidity and composability for staked SOL assets.
Furthermore, it represents the first LRT to tackle reward allocation and slashing issues that have challenged other LRTs, and it achieves this uniquely on Solana. The token leverages Solana’s token extension and its transfer hook instrument to accurately operate reward distribution. Such an approach guarantees that rewards from the Node Consensus Network (NCN) are precisely allocated based on the duration each individual holds their funds.
During transactions involving fragSOL, the transfer hook is triggered, updating the fragSOL balances of both parties within Fragmetric’s Rewards Module. Upon receiving NCN incentives in Fragmetric’s vault, the rewards module logs the time-based balances, enabling individuals to claim their incentives. This process guarantees that fragSOL precisely determines and allocates NCN rewards to all participants.
Fragmetric Leverages Normalized Token Program, Optimizing Slashing Ratios And Enhance NCN Validation
Furthermore, Fragmetric tackles the challenge of defining clear slashing ratios for different LSTs through its Normalized Token Program. This program allows for the concurrent use of multiple LSTs in NCN validation. It distributes fragSOL tokens based on the quantity and value of pooled LSTs, with newly minted nSOL being restaked into the Fragmetric Vault for secure NCN validation. In case of slashing, proportional LSTs can be reclaimed from the pool using the slashed nSOL.
Fragmetric aims to establish secure standards for LRTs and VRTs and will also quantitatively assess the profitability and security of NCNs once restaking is operational. Fragmetric seeks to be more than a leverage product, representing itself as a liquid restaking protocol that enhances the security of the Solana ecosystem.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
