Investing In Jito Network (JTO)  – Everything You Need to Know

The Jito Network (JTO) is a liquidity staking protocol that operates within the Solana Ecosystem.  The platform introduces a new staking model that incorporates MEV “maximum extractable value” into users’ rewards. This structure enables stakers to receive more returns versus competitors. Here’s everything you need to know about investing in the Jito Network.

Currently, the Jito Network is the largest liquid staking provider in the Solana ecosystem. A liquid staking protocol functions by issuing users a token that represents the value of the asset staked. This structure is popular because it enables users to continue to access additional DeFi (Decentralized Finance) options to increase returns while their original asset remains locked securing staking rewards.

Liquid staking protocols help to alleviate a lot of problems, such as locked funds and missed opportunities. Normally, when you stake a token, you cannot access it during the staking period without fees or losing your reward completely. Liquid staking eliminates this issue by leveraging LP (liquidity pool) tokens and smart contracts.

What Problems Does Jito Network Attempt to Fix?

The Jito Network helps to reduce MEV issues within the mining and staking community. The term MEV originated as a way to describe how nodes and users manipulate the market slightly to improve returns. There are many ways to do this, ranging from arbitrage trading to miners delaying certain transactions to put through others to improve rewards.

Source – Jito Network

Maximum Returns

In the early days of the market, the main forms of MEV would be arbitrage trading and miner selectivity. Before its upgrade to the PoS consensus, Ethereum miners used to be able to see potential transactions to validate. They could use this information to make buys or sells before pushing through the other transaction. These results would sometimes result in a +5% increase in returns.

New Networks Still Have MEV Issues

Notably, newer blockchains deal with other forms of MEV. For example, many DeFi gen-4 PoS blockchains have bot manipulation issues. Bots are automated protocols that can execute trades on a trader’s behalf. They are prevalent among professional traders.

Bots help you never miss a trade. However, they can also be used maliciously. For example, some bots scan NFT releases and purchase all of them at a base price. Then, the bots resell the tokens automatically after the demand increases prices temporarily.

Jito doesn’t shy away from MEV, as it’s an essential part of the market. Instead, it integrates these strategies into the liquid pool rewards to drive returns higher. This approach combined with its LP token, JitoSOL, enables users to simultaneously accumulate rewards that include MEV across both staking and yield farming options.

Benefits of Jito Network

The Jito Network provides a lot of benefits to the Solana ecosystem. It operates a permissionless liquid stacking protocol that makes it easy for users to obtain passive returns securing the network.

Notably, The Jito Network’s unique structure enables stakers to benefit from MEV profits based on their contributions. For example, MEV-enabled validators profit from transaction re-ordering, arbitrage, and other strategies.

Non-Custodial

The Jito Network is a non-custodial liquid stacking protocol. This structure means that you are the only one who can access your private keys. Notably, the most secure options are non-custodial, decentralized, and open-source DeFi systems.

Fully Audited

The Jito Network’s developers remain committed to security. The platform has had its open-source code audited by multiple forensic firms. Additionally, the community has the opportunity to review it at any time.

How Does Jito Network Work?

The Jito Network enables users to pool their funding to help secure the Solana blockchain. The protocol operates as an open-source Solana validator client. Validator pools help more users join in on validation processes by reducing the token requirements.

JitoSOL Liquid Staking Pool

The JoSOL Liquid Staking Pool enables users to stake their SOL tokens. In exchange for their assets, they receive JitoSOL tokens which mimic the value of the staked token. Notably, each pool requires specific validator requirements and delegation tactics.

Token – JTO

JTO is the main utility and governance token of the network. The tokens can be used to pay fees, issue rewards, and as a core component of the community governance system. 1B JTO tokens will be issued over the project’s life.

JitoSOL

JitoSOL gets issued to users when they stake in the liquidity pools. This token opens the door for additional returns and can be used to leverage yield farming options. When the staking period ends and your original asset is released, the JitoSOL is sent to a burn address.

Governance

JTO token holders have a say in the direction of the network. They can stake their token to gain access to voting and proposal rights. Notably, the system leverages a weighted structure that gives users who stake more tokens more influence. The community governance system can be used to adjust fees, adjust treasury management, and improve initiatives.

Jito Foundation

The Jito Foundation is the non-profit associated with the project. This group helps to promote the platform and anyone who seeks to improve it. They can provide technical and other means of support for developers who want to expand the Jito Network’s usability or reach.

History

The Jito network entered the market on December 7th, 2023. Since its launch, it has surpassed all competitors to become Solana’s most popular liquid staking protocol. In the future, the network intends to offer a wide range of services to improve capital efficiency across pools, DEXs, and other DeFi systems.

How to Buy Jito Network (JTO)

Currently, Jito Network (JTO) is available for purchase on the following exchanges.

Uphold – This is one of the top exchanges for United States residents that offers a wide range of cryptocurrencies. Germany & Netherlands are prohibited.

Uphold Disclaimer: Terms Apply. Cryptoassets are highly volatile. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong.

Coinbase – A publicly traded exchange listed on the NASDAQ. Coinbase accepts residents from 100+ countries, including Australia, Canada, France, Germany, Netherlands, Singapore, the United Kingdom, and the United States (excluding Hawaii).

Kraken – Founded in 2011, Kraken is one of the most trusted names in the industry and offers trading access to over 190 countries, including Australia, Canada, Europe, and the United States (excluding Maine, and New York).

Kraken Disclaimer: Not investment advice. Crypto trading involves risk of loss. Payward European Solutions Limited t/a Kraken is authorised by the Central Bank of Ireland.

The Jito Network (JTO) – Liquid Stacking Just Got Better

The Jito Network wisely incorporated MEV into its reward structure. It’s the first to make this maneuver, and its efforts continue to see results. You can expect other liquid staking protocols to follow suit as the competition heats up. For now, you can’t ignore the Jito Network’s pioneering efforts and first-mover advantage.