GM, this is your Daily Bolt briefing.
In this edition, we’re keeping you up to date on LSTs on Solana, specifically JitoSOL. Stay up to date on non-ETH liquid staking, and learn about the nuances of the Solana ecosystem. Whether you’re bullish or bearish SOL, staying on top of other chains is essential to spotting narratives.
We’ve also included notes on the state of Onchain gaming, featuring industry insights from Delphi Digital.
Also; don’t miss our 1st episode of Metrics Matter LIVE, today at 11AM EST, featuring Souvlaki and Nick Drakon. Previously, this was a private workshop available only for premium members… Tune in to learn about the DEX landscape and capital efficiency in DeFi.
Over and out ⬇️
1/ 0xResearch - JitoSol: Building Solana's Hot Seat DeFi Moment
Preview: Lucas Bruder from Jito Labs talks about MEV on Solana, Jito Labs, JitoSOL, and more. Click here to listen to the full episode (77 mins).
Read our Note (7 mins) and save 70 mins.
Here are some key takeaways:
When asked by Dan about the interaction between MEV solutions and liquid staking on Solana, Lucas explains that Solana's design differs from Ethereum, specifically in terms of block production and speed. He elaborates that Solana's block production is continuous, unlike Ethereum's 12-second pause, and likens this to high-frequency trading.
Sam brings up JitoSOL, a custom client focused on extracting MEV. Lucas explains that JitoSOL is similar to Flash Bots' MEV Geth, and it's based on Solana's client. JitoSOL can process bundles and handle MEV tips efficiently.
When Sam asks about Fire Dancer, an upcoming upgrade, Lucas confirms that it will lead to the development of Jito Dancer. Lucas says that Jito Labs are closely monitoring the progress of Fire Dancer, which is expected to significantly improve Solana's performance.
Dan asks Lucas about the tip from the searcher to the validator in the JitoSOL liquid staking solution. He confirms that the tip goes to all stakers on that validator. He explains that JitoSOL stakes 38 validators, who will get the MEV, and that JitoSOL is a reward-bearing token.
Sam compares Jito's 38 validators with Lido's 29 node operators on Ethereum. Lucas confirms that 145 validators run JitoSOL clients and 38 of them are staked. He adds that they aim to expand the validator set for better performance.
Discussing JitoSOL, the liquid staking token, Dan points out that it performs well with an average yield of 7.2%, higher than Marinade and Lido. Lucas confirms that they extract a small amount of MEV daily with the Jito Labs block engine and plans to improve this extraction process in the future.
Lucas explains how isolated fee markets work on Solana, allowing individual transactions to bid on access to a set of states, mitigating block space contention from varied activities such as NFT mints and trades, speculations, and arbitrages. He anticipates improvements in Solana's validator's scheduler.
Sam mentions the relatively low percentage of supply staked in liquid staking tokens compared to other proof-of-stake ecosystems and asks Lucas for his perspective on this.
Lucas points to structural differences between Ethereum and Solana as potential reasons, including Solana's allowance for withdrawals from day one, its shorter withdrawal or activation queue, and its less mature DeFi ecosystem.
1/ Deus Ex DAO - The State Of Onchain Gaming
Preview: ACL and Kepler discuss the state of the onchain gaming ecosystem, the layers of onchain gaming, and the challenges. Click here to listen to the full episode (69 mins).
Read our Note (6 mins) and save 63 mins.
Here are some key takeaways:
JACL says that the current state of on-chain gaming is quite nascent. He says that there are less than 10 on-chain games that you can actually play at the moment.He says that the development of these games is faster than typical AAA games because of their more simplistic nature. Unlike AAA games which are complex and require extensive resources and time to develop, on-chain games are simpler and thus quicker to develop.
JACL says that the on-chain gaming space is expected to move incredibly fast over the next 12 to 24 months.
He says that blockchain gaming can be divided into different sub-sectors. He says that there are games that are entirely off-chain with NFTs slapped on top, also there are games that are slightly more on-chain with NFT and fungible token components, and fully on-chain games where all game logic and data are on-chain.
He believes that on-chain gaming will not become a mass-market product, but will appeal to a certain percentage of gamers who demand a certain level of permanence and accountability from game developers.
Kepler says that as on-chain games reach more daily active users, we will see more developments in infrastructure to allow for more use cases. JACL says that on-chain gaming isn't as big as some people may think.
JACL says he believes in the importance of the role of DAOs or sub-DAOs in on-chain gaming. He says that these entities are effectively engaging with these virtual worlds at such a high level that they're able to profit and treat them almost like a job.
He says that on-chain games are like UGC (User Generated Content) on steroids, indicating that the level of user and community involvement in on-chain games is significantly higher than in traditional games.
JACL says that bots are a feature in on-chain gaming and can't be avoided. He thinks that the use of bots is an inherent part of on-chain gaming, and attempts to eliminate them would likely be futile.
Kepler says that the use of bots could be a natural progression for on-chain gaming.
JACL says that on-chain games are uniquely positioned to take advantage of bots within gameplay. He thinks that instead of trying to eradicate bots, on-chain games could lean into it as a feature, further differentiating them from traditional games.
If you read these 2 Notes on Revelo Intel you would have saved: 2 hours and 45 minutes!