After six weeks of rigorous activity, Xandeum has successfully concluded its liquid staking program, setting high standards for future initiatives. The program offered a generous distribution of 205 million XAND tokens as rewards and saw a striking 68% of available XAND being staked by users. The program was designed to provide a 16% annual percentage yield (APY), achieved through an innovative quadruple rewards system.
Xandeum’s unique approach to liquid staking incorporated staking rewards, MEV rewards, block rewards, and XAND incentives. The equitable distribution of these rewards showcased the potential for liquid staking to grow on the Solana blockchain and become an integral part of its decentralized finance (DeFi) ecosystem.
Xandeum’s staking model distinguishes itself from traditional models by sharing MEV and block rewards with its stakers. This strategy is designed to maximize user value and ensure network resilience. The model has succeeded in attracting over $7 million worth of SOL to its staking pool.
Transparency was a cornerstone of the program. All pool fees were directed to the Xandeum DAO treasury, where XAND token holders were given the power to make decisions. This approach not only made staking more accessible but also added value, contributing to the strengthening of the Solana network.
But Xandeum’s innovation doesn’t stop with staking. The protocol is gearing up to launch a scalable storage layer in early 2025, which is set to revolutionize how Solana handles data. This new layer addresses the storage trilemma in blockchain infrastructure by offering a scalable, cost-effective, and smart contract-native solution. This will not only unlock new use cases for Solana dapps but also introduce new revenue streams for stakers.
Liquid staking is proving to be a catalyst for Solana’s growth. By eliminating the traditional trade-off between earning rewards and maintaining liquidity, it enables greater participation in staking. For Solana, which is highly regarded for its speed and efficiency, liquid staking augments its utility by enhancing user participation and network decentralization.
The future looks promising for developers working within this sector on Solana, with the creation of dapps and protocols that leverage liquid staking tokens (LSTs) in innovative ways. From collateralizing stablecoins to providing liquidity for onchain perpetual contracts, prediction markets, and decentralized exchanges, the potential applications of LSTs are limitless.
In conclusion, Xandeum’s successful liquid staking program has set a high bar for future initiatives in the Solana ecosystem. Its innovative approach to staking and upcoming scalable storage layer demonstrate a commitment to maximizing user value and strengthening Solana’s network. The future of DeFi on Solana looks brighter than ever, thanks to protocols like Xandeum.
