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Unstake Liquidity Pool

The Marinade mSOL/SOL unstake pool is an internal mSOL-SOL pool that is intentionally unbalanced and operating at its best if 100% of its liquidity is filled with SOL from liquidity providers.

No Impermanent Loss

Because liquidity providers only deposit SOL, the Marinade Unstake Liquidity pool is free from divergent/impermanent loss. You are guaranteed by code that you will remove the same or more SOL value than the amount you deposited (minus the 0.00001 transaction fees from Solana).
This liquidity pool serves multiple purposes:
  • Provide immediate liquidity for unstaking.
  • Match staking and unstaking orders (see Order matching).
  • Provide a fair-price, no-slippage source for mSOL liquidations.
The pool has a linear swap fee decreasing until the target liquidity is reached to cover operation costs and incentivize liquidity providers. 50% of the fees go to liquidity providers and 50% to the Marinade treasury.
Current parameters are: - max fee: 9% - min fee: 0.1% - liquidity target 56,000 SOL
Fee structure of the mSOL/SOL pool. As long as the liquidity target is maintained after your unstake, the fees will be 0.3%.
Any user can become a liquidity provider.
Liquidity providers can add or remove liquidity at any time, and they receive a LP Token representing their share of the liquidity pool. As other users utilize the liquid-unstake option, fees are added to the pool and LP's share value.
Composition and flow of the mSOL/SOL liquidity pool.

Fee calculation

The immediate unstake fee varies between 0.1% and 9% and depends on the total liquidity available in the Marinade pool and the amount to unstake. Marinade’s liquidity target is set at 56,000 SOL. As long as this target is maintained after unstaking, the fee will be 0.1%.
If the liquidity in the Marinade pool goes below the given threshold, the instant unstake fee is calculated as:
unstake_fee = max_fee - (max_fee - min_fee) * amount_after / target

Order matching

To minimize unnecessary operations and achieve the best efficiency of the liquidity pool, Marinade continuously adjusts the liquidity pool to be 100% SOL. This is how it’s done:
  1. 1.
    Once an immediate unstake operation is done, the liquidity pool now includes the mSOL (sent by the user unstaking) and original SOL liquidity.
  2. 2.
    When another stake operation is called, the mSOL is provided from the liquidity pool.
  3. 3.
    Marinade refills the liquidity pool with user-deposited SOL at no cost for the user to achieve pool adjustments and full liquidity for immediate unstaking.