Marinade Upgrades USDG Recipe For Flexible Solana Staking

Marinade Upgrades USDG Recipe For Flexible Solana Staking

Key Highlights

  • Marinade Finance has revealed a major upgrade in its USDG Recipe service, which allows users to stake SOL, earn USDG in different wallets
  • This update will remove the need to transfer tokens manually and allow users to route earnings wherever they want to send them
  • This will provide users with the security of native staking combined with the benefits of a liquid staking token

On November 27, Marinade Finance announced a major upgrade to its USDG Recipe service, which changes how staking rewards are managed by allowing users to send their earnings directly to a completely different wallet. 

Marinade Finance Enhances USDG Recipe Services

The announcement is seen as a reversal from the traditional system, where rewards were automatically deposited back into the same wallet used for staking. 

Marinade Finance has tried to resolve a major issue in the latest update. Until now, Solana staking rewards have lacked flexibility in terms of transactions. They were permanently linked to the original staking wallet, which makes it impossible to route them elsewhere or share ownership of the yield. 

In the new update, the Marinade Finance team is trying to resolve this issue. The main function of the USDG Recipe remains the same. It allows users to stake their SOL and receive rewards in USDG instead of in SOL. 

In the past, users had to manually transfer tokens after each distribution if they wanted to send rewards to different wallets. This type of process increases fees with a potential price slippage. 

Now, the entire process is automated with a single click during the initial staking setup. Users can delegate their SOL and set a separate reward wallet. After this, Marinade’s system handles the rest by sending the epoch-based rewards directly to the designated address in stable USDG. This occurs approximately every 2 days on Solana.

For individual users, this update will help them in creative financial planning. A parent could stake their SOL but route the stablecoin rewards to a child’s wallet as a form of automated allowance. 

Similarly, a company can keep its staked SOL secure in one wallet while sending the yield to a separate treasury or compliance wallet, all without interrupting the staking process. This flexibility also enhances security. 

Because the user is engaging in native staking, their original SOL never leaves their custody or is locked in a smart contract. It avoids risks associated with some liquid staking protocols. 

Marinade Finance is the non-custodial liquid staking protocol on the Solana blockchain, which manages over $2.5 billion in assets. At the time of writing, the protocol has $1.48 billion in total value locked, according to DefiLIama

The protocol allows users to delegate a user’s SOL to a selected pool of over 100 high-performance validators. 

The total amount of SOL being staked has reached a new high, with over 65% of the circulating supply currently staked to secure the network. This has boosted competition among validators and liquid staking providers like Marinade and Jito.

Solana Dips after Upbit Hack 

At the time of writing this, SOL is trading at around $142.41 with a 1.27% drop in 24 hours, according to CoinMarketCap. The current market capitalization is around $79.67 billion. 

The recent security incident on Upbit has also declined SOL’s price, where approximately $36 million in assets were stolen from the exchange’s Solana hot wallet. This incident happened at a very crucial time when the cryptocurrency market is rebounding, including SOL, which recently plunged to $120. 

In response to the hack, the South Korean exchange has taken action to suspend all deposits and withdrawals of SOL for an indefinite period. The suspension has directly affected the available supply of SOL on a major trading platform and market liquidity. Such incidents can increase selling pressure.

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Rajpalsinh Parmar
Written by Rajpalsinh Parmar
Rajpalsinh is a crypto journalist with over three years of experience and is currently working with CryptoNewsZ. Throughout his journey, he has honed skills like content optimization and has developed expertise in blockchain platforms, crypto trading bots, and hackathon news and events. He has also written for TheCryptoTimes, where his ability to simplify complex crypto topics makes his articles accessible to a wide audience. Passionate about the ever-evolving crypto space, he stays updated on industry trends to provide well-researched insights. Outside of work, gaming serves as his stress buster, helping him stay focused and refreshed for his next big story. He is always eager to explore new blockchain innovations and their potential impact on the global financial ecosystem.