Introduction of Solana's ecological Jito Network

With the news of the Bitcoin spot ETF this week, the overall blockchain market is generally bullish, and among the top ten market capitalization, in addition to BTC, the protagonist of this narrative, the highest increase is the Solana protocol token $SOL.

Source:

In last year's FTX crash, Solana was greatly hurt, not only affected by the collapse of $SOL tokens, but also because of the liquidity of the on-chain ecology and mapping cross-chain tokens such as soBTC, soETH and the underlying DEX protocol Serum and so on, these on-chain infrastructure are provided or sponsored by FTX, and with the collapse also led to the withdrawal of capital liquidity, the zeroing of mapping tokens and the security of the underlying liquidity protocol Serum at risk, Solana ecology TVL has experienced a bloody decline, from a billion dollars TVL before the event to a low of 200 million US dollars.

However, with the persistence of Solana community members and the continuous efforts of the Foundation to update, it is now nearly one year after the FTX crash, Solana not only has the price of the token $SOL recovered to the level before the event, but the Solana on-chain TVL has also risen by nearly 90% from the low point at the beginning of the year, from $200 million to $380 million today.

Source:

In such a difficult environment this year, the best performance in the Solana ecological protocol is definitely Jito, Jito launched the mainnet in November 2022 last year in the most difficult period after the FTX crash, TVL from the initial four million US dollars, a year has passed now has exceeded 100 million US dollars, second only to Solana liquidity pledge protocol Marinade Finance has become the second largest protocol on the chain TVL.

Source:

**This week's CryptoSnap Dr.DODO introduces you to Jito, the most rising in the Solana Defi ecosystem today, ** let everyone find out what magic makes Jito perform so well in the bad environment of the currency circle and being in Solana.

What is Jito? **

Jito is the **** liquidity pledging protocol launched by Jito Lab, which received a $10 million Series A financing round led by Multicoin Capital and Framework Ventures in August 2022, and participated by Solana Ventures and Solana Labs co-founder Anatoly Yakovenko.

Jito refers to itself as the first staking product on Solana to include MEV rewards, Unlike other existing liquidity staking protocols, the rewards Jito provides to stakers have special MEV rewards in addition to staking earnings, Jito Lab in addition to the liquidity staking track, also focuses on the MEV track, is Solana's first third-party validator client Jito-Solana development team, through Jito-Solana architecture, It will effectively capture the MEV revenue in the Solana network, and reduce the ineffective tx dust attack, and reduce the probability of Solana's entire public chain crashing.

The Jito-Solana client introduces an auction mechanism similar to the Flashbot auction on the Ethereum mainnet, where traders submit bids for sequences of transactions they consider profitable, and then a third-party block engine runs complex simulations to find the highest value trade combinations, which are then distributed to validators and coin holders (JitoSOL), eliminating tx dust attacks while increasing the rewards for coin holders.

Source:

Flashbot + Lido = Jito

In the Solana Foundation's recently released October 2023 Blockchain Validator Health Report, Jito Labs client Jito-Solana has increased its network ratio from 0% to 31% since its initial launch in August 2022, and is currently the only third-party client, and the auction mechanism brought by Jito-Solana has successfully opened up different from the official validator and successfully attracted many stakers to use.

Source:

The emergence of Jito not only solves the troublesome MEV problem on the Solana chain, but also reduces the downtime caused by congestion on the Solana chain, and as Lido announces that it will withdraw from the Solana staking field, Jito is expected to get more Sol liquidity staking share.

In addition, because Jito does not yet have a governance token factor also attracts long-airdrop hunters to participate, Jito is currently conducting a points campaign, holding JitoSOL and putting JitoSOL into the lending platform or providing liquidity can earn points, and there is also a referral mechanism, referral more people can get higher points.

Author's opinion

The author believes that the Solana ecosystem is definitely an area worth paying attention to, after a year of low tide, projects that are not favored by the community or inaction of the project party have long been eliminated, and the protocols that can survive today represent strong community support and continuous update and delivery of the development team, and among the many projects that have not yet been issued coins are worth participating.

Therefore, this time will introduce this Jito protocol is also because of the above three points and get the author's attention, the author believes that Jito can be said to be a rule changer on Solana, the potential of the protocol is huge, ** and in addition to Jito, there are kamino, marginfi are also in the author's watch list also meet the above three characteristics **, all worthy of everyone's attention and participation.