JITO Foundation recently disclosed the launch of Jito restaking code, positioning itself at the forefront of implementing restaking on the Solana blockchain. The framework, although pending auditing and deployment, shows promise in bolstering economic security for various on-chain applications. Jito restaking aims to offer economic security for Actively Validated Services (AVS), catering to a wide array of on-chain applications. In contrast to EigenLayer on Ethereum, which limits collateral to ETH and specific ETH derivatives, Jito allows users to secure AVSs with any cryptocurrency, showcasing a flexible and innovative approach that may expand restaking applications within the Solana ecosystem.
Components of Jito Restaking
Jito restaking comprises two core components:
- Vault Program: This program oversees the creation and functionality of Liquid Restaking Tokens (LRTs) supporting multiple SPL tokens as underlying assets. It enables minting, burning, and delegation, offering customizable delegation strategies, flexible slashing conditions, and specific caps associated with AVSs.
- Restaking Program: Responsible for creating and managing AVSs and operators, this program coordinates interactions among AVSs, operators, and vaults. It manages reward distribution, enforces slashing penalties, and provides a scalable infrastructure for handling staked assets and AVSs.
Flexibility and Security
Jito's restaking framework is multi-asset, using staked base assets like JitoSOL and other SPL tokens. This versatility allows for tailored risk management and security models with fine-tuned slashing conditions, facilitating multi-tiered and multi-asset slashing for comprehensive economic security.
Jito Restaking's adaptability extends beyond securing L2 sequencers and provers to applications 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 Prospects
Although Jito's restaking code is not live on the Solana mainnet yet, its introduction marks a significant milestone. JitoSOL, Jito's liquid staking pool, is a dominant player in Solana's liquid staking token market. Presently, Jito represents approximately 38% of Solana's $5.34 billion total value locked (TVL) as per DeFiLlama data.
