The new liquid restaking coin that Jito and Fragmetric have added to the Solana blockchain is called fragSOL. According to a blog post by Fragmetric on August 29, this is the first liquid restaking token that is native to Solana. It is based on Jito’s restaking vault receipt token.
FragSOL is meant to solve problems with how rewards are given out and how liquid stake tokens are cut. Fragmetric said that these features are possible because of the Solana blockchain’s special features.
Boosting Solana’s Staking Liquidity
Liquid restaking tokens (LRTs) are a new type of token in the liquid staking market. They let people in decentralized finance make rewards from both their staked tokens and Actively Validated Services (AVS) rewards.
Users can put tokens like SOL into any system for liquid restaking, get staked liquid tokens, and then restake those tokens to support AVS, which earns them more yield. However, many LRT systems have trouble giving out AVS rewards correctly.
Fragmetric says that fragSOL, which uses Jito’s restaking framework and Solana’s token extension, will make the market much better by making held Solana tokens more liquid and easy to combine with other tokens.
Unlike Ethereum-based protocols, which often have trouble allocating AVS rewards, fragSOL plans to fix this problem with SOL transfer hook feature, which will make sure that rewards are given out based on how long users hold their LRTs.
Not long ago, Renzo released its liquid restaking coin, ezSOL, on the Jito platform. Now, fragSOL has also been released. The liquid restaking tokens ezETH on EigenLayer and pzETH on Symbiotic can also be used with Renzo’s system.
