Saber announced last Monday, August 9, through his Twitter account, his new partnership with Marinade Finance, to do in Solana, the stake of liquid through the common fund of $mSOL.
“Saber is pleased to announce a partnership with Marinade Finance to create a group of mSOL / SOL, making betting on Solana liquid and accessible to all”, he said through an article published on the Medium platform.
The company explained that Marinade Finance is the first liquid betting protocol created in Solana that allows users to bet, exchange, accumulate rewards and seamlessly guarantee their SOL wagered through tokenization in the form of mSOL.
How to earn SBR by providing mSOL / SOL liquidity
The company shared the steps users must follow to earn $BR:
1) Bet your SOL on Marinade Finance to get mSOL, receiving participation rewards.
2) Provide liquidity for mSOL / SOL in Saber, receiving rewards from Liquidity Provider.
3) Stake that r LP tokens onto Saber, receiving SBR mining rewards of liquidity.
According to the company, gambling is the lifeblood of Proof-of-Stake blockchains like Solana. Democratizing access to participation is vital to ensuring adequate security, consensus, and decentralization for Solana itself.
“However, manually delegating / setting bets on Solana is not only a major annoyance, BUT your wagered SOL is ALSO not liquid in this way. While you do get wagering rewards (~ 8% APY), traditionally wagered SOL cannot be traded, transferred, or used for further rewards. Typically, you only start receiving wagering rewards after a 3-day warm-up period, and you can only withdraw your wagered SOL after a 3-day payback period. Additionally, users must manually reinvest their participation rewards to capitalize on the compounding effects of participation over time. Without liquid participation solutions like Marinade Finance, SOL’s participation inherently excludes it from the DeFi ecosystem”, he added.
Saber guarantees that liquid equity derivatives like mSOL are truly liquid
The company highlighted that a liquid market to invest in derivatives such as mSOL is fundamental to its strength. “Without a liquid market, derivatives with liquid participation can experience high slippage and even run the risk of being delinked from the underlying asset. Saber’s Stableswap AMM design ensures low slippage, deep liquidity and rich trading experience”, he said.