Tag: vrt tokens

  • How to start Solana restaking on Jito as EigenLayer rivalry heats up

    How to start Solana restaking on Jito as EigenLayer rivalry heats up

    EigenLayer holds $19.7 billion in total value locked in 2026. Jito’s block-building stack runs on 60% of Solana’s stake weight. EigenLayer uses Actively Validated Services (AVSs) to secure middleware. Jito uses Node Consensus Networks (NCNs). NCNs like TipRouter and Switchboard use restaked assets for economic security. Lucas Bruder says Solana’s low fees allow for more composable and fast work. Sreeram Kannan says EigenLayer is a platform for building decentralized services. EigenLayer’s AVSs allow developers to rent Ethereum’s security. Jito’s NCNs allow projects to borrow security from existing SOL validators.

    The mechanics of Jito restaking

    Restakers delegate tokens to NCNs through the Vault program. The program issues VRTs to represent the user’s stake. These VRTs can be traded or used in DeFi. Node operators run the offchain protocols for NCNs. They receive stake from approved vaults.

    How to start Solana restaking on Jito as EigenLayer rivalry heats up (2)

    NCNs pay rewards to restakers and node operators. NCNs enforce specific slashing conditions. Each NCN defines an offchain protocol. Node operators opt in to service these operations. NCNs allow projects to launch without building a consensus or a network of validators from scratch.

    The Jito TipRouter is a live NCN that optimizes the routing of transaction tips. It collects 3% of all tip revenue as a fee. 2.7% of the revenue flows to the Jito DAO. 0.15% flows to SOL vault operators. 0.15% flows to JTO vault operators. This model ensures that restakers and validators receive incentives.

    How to use the Jito interface

    I prefer the asset-first method.

    The Jito interface provides a toggle for deposit methods. You can select your asset first or choose a vault first. To start, go to the Jito restaking website. Connect a Solana wallet such as Phantom or Solflare. Choose your preferred approach via the toggle. Pick a token and a compatible vault. Enter the amount. Review and confirm the transaction. You should check the specific fee structure before depositing.

    If you select the vault first, you pick a vault and then deposit compatible assets. If you select the asset first, you pick your token and then select a compatible vault. After you deposit, your assets sit in a vault smart contract. You receive VRT tokens representing your share.

    If you want to exit your position quickly, you can swap your liquid staking tokens for SOL on a decentralized exchange like Jupiter, though you must accept a slippage of approximately 0.3% for the transaction. A standard withdrawal involves a two-epoch cooldown that lasts 4 to 5 days. Using Jito for withdrawal involves a 0.1% fee and a 1-day delay.

    Yields and liquid staking assets

    jitoSOL provides MEV rewards. In mid-2026, jitoSOL implied APY sits near 5.6% to 5.7%. Native Solana staking rewards are 6-7% APY. jitoSOL holders earn an extra 0.5-1% from MEV tips. Marinade’s mSOL has over $1.2 billion in TVL. Renzo supports $36 million on Solana. Solayer has $112 million in total deposits and 304,000 users.

    Protocol Type 2026 Yield (Approx)
    Native Solana Staking 6-7%
    jitoSOL Liquid Staking 7.2-7.8%
    EigenLayer Restaking 5-15%
    Solayer Restaking 7.65%
    Renzo LRT 7.2%

    jitoSOL is a reward-bearing token. Its value relative to SOL climbs as rewards accrue. This happens because Jito captures MEV tips from arbitrage bots and distributes 95% to holders. In 2026, the premium from MEV tips narrowed because transaction-ordering tips fell.

    I use Phantom.

    Managing risks and validator performance

    Slashing is a risk.

    Slashing is a penalty where a portion of staked assets is lost if an operator fails to follow NCN rules. NCNs enforce these conditions. Slashing can be multi-tiered. If an operator is dishonest, the stake is lost. NCNs can also define maximum slashable amounts per epoch per operator.

    The top three validators hold 26% of delegated SOL. This includes Helius, Binance Staking, and Galaxy. The Nakamoto coefficient is 20. This means 20 validators could halt block production.

    Smart contract risk exists in all DeFi protocols. If a vault contract has a vulnerability, assets could be lost. Liquidity risk is also possible. VRT prices may diverge from the underlying asset during high demand.

    Regulatory risks exist for exchange-based staking. The SEC brought enforcement actions against Coinbase and Kraken in 2023.

    Comparing Solana and Ethereum strategies

    Jito handles 60%.

    Jito focuses on services like keepers, oracles, and MEV networks within the Solana Layer 1. EigenLayer focuses on scaling Ethereum through AVSs. EigenLayer requires EigenDA for data availability because Ethereum has limited throughput. Solana’s high throughput and low fees make restaking more accessible to everyday users.

    Jito’s liquidity is tied to VRTs. EigenLayer uses Liquid Restaking Tokens (LRTs). Both allow users to maintain liquidity in DeFi.

    What happens if NCN adoption fails?

    I find Jito to be the better choice for Solana users.