JITO Foundation recently unveiled the Jito restaking code, marking a pivotal moment in Solana's ecosystem. The release positions JITO at the forefront of the restaking race within the blockchain network. This code, although pending auditing and implementation, presents a promising avenue for bolstering economic security across diverse on-chain applications.
Jito restaking aims to offer economic security for Actively Validated Services (AVS), encompassing a wide array of on-chain applications. In contrast to EigenLayer on Ethereum, which confines collateral to ETH and specific derivatives, Jito's approach allows users to secure AVSs with any cryptocurrency of their preference. This adaptability signifies a significant stride forward, potentially expanding the horizons of restaking applications within the Solana ecosystem.
Components of Jito Restaking
Jito restaking comprises two core components: the Vault Program and the Restaking Program:
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Vault Program: Manages Liquid Restaking Tokens (LRTs) creation and operations using multiple SPL tokens as underlying assets. It orchestrates minting, burning, and delegation processes, offering customizable delegation strategies, flexible slashing terms, and caps aligned with associated AVSs.
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Restaking Program: Streamlines the setup and oversight of AVSs and operators, handling relationships between AVSs, operators, and vaults. It governs reward dispersion and enforces slashing penalties, furnishing a scalable infrastructure for managing staked assets and AVSs.
Flexibility and Security
The Jito restaking framework is multi-asset, leveraging staked base assets like JitoSOL and other SPL tokens. This versatility permits tailored slashing conditions, enabling precise risk management and security models tailored to each project's requirements. Projects can implement multi-tiered and multi-asset slashing for comprehensive economic security.
Reports suggest that Jito Restaking's flexibility extends beyond securing L2 sequencers and provers. It can be integrated into diverse sectors such as insurance funds, cross-chain bridges, keepers, on/off-ramps, or any decentralized crypto use case necessitating economic security and decentralization.
Current Status and Future Outlook
Although Jito's restaking code is pending deployment on the Solana mainnet, its release signifies a significant achievement. JitoSOL, Jito's liquid staking pool, ranks among Solana's largest, dominating the liquid staking token market. Presently, Jito constitutes approximately 38% of Solana's $5.34 billion total value locked (TVL), according to DeFiLlama data.
