While plenty of Solana validators perform their network-securing duties and are justly rewarded, it takes a special effort and high-end expertise to maximize rewards while maintaining security practices and ensuring compliance. With Figment’s enterprise-grade staking infrastructure, diligent regulatory compliance efforts and top-notch security practices, our partners can have their cake and eat it too, all while retaining full self-custody of their digital assets.
In Q4, Figment achieved all-time high staking rewards with an exceptional Staking Rewards Rate (SRR) of 8.42%, surpassing the not-bad-at-all network average of 6.41% by an impressive 27%.
The strong trend has continued over the first 30 days of the new year, with even higher staking rewards of an astounding 10.11% versus the network average of 6.84%.
Figment’s industry-leading staking strategies — with transparency, safety, consistent uptime and efficient participation as our north stars — have resulted in incredible rewards for those taking advantage of the service.
Our success in Q4 is in no small part thanks to the cleverly effective harnessing of MEV, or maximal extractable value, achieved via the Jito Labs MEV-boosted validator client. Jito MEV performs blockchain transaction optimization at lightning speed, sorting transactions into highly efficient bundles while conserving blockspace by reducing wasteful network spam.
Due to these massive improvements in network efficiency, Jito earns MEV “tips” which are then added to the standard staking rewards that other services might forego, protecting partners from missing out on rewards. Jito’s MEV produced more than 25% of our Solana validator rewards in Q4. We then passed these even bigger rewards on to our stakeholders.
An interesting note: Over the course of time, MEV tip rewards will become even more important as Solana follows a gradual disinflation schedule. Eventually, Solana will arrive at a terminal inflation rate of 1.5%, so we are constantly on the lookout for the best strategies to maximize validator rewards.
No slashing, thanks
It’s worth noting that the Solana network itself offers investors a unique advantage over other Proof-of-Stake (PoS) protocols. By not enabling automatic slashing — a common tool among many PoS protocols — validators can avoid potentially suffering losses for invalid transactions.
Instead of slashing automatically, the validator community can vote to manually slash the stake of a malicious actor. Because Figment has proven over four years to be a reliable and trustworthy Solana staking solution, our users continue to be protected against the consequences of manual slashing.
Voting Effectiveness is another crucial element in maximizing staking rewards. We achieved greater than 99% accuracy in voting, modulated by latencies over the last 30 days of Q4 — and it’s trending toward 100% in recent weeks.
Crunching the numbers
Consider all of these contributing factors with a simple example: A user staking 100 SOL via Figment throughout Q4 would have netted an extra 4.8 SOL in staking rewards. That’s more than 20% higher than the network average.
Over the course of time, it all adds up to substantially greater rewards for our users than competing solutions.
Security is Priority #1
Most importantly, we provide optimized rewards with security and compliance as our top priorities. Our institutional-grade operations and regulatory expertise provide legal compliance while balancing risk mitigation with cutting-edge security engineering. After all, there’s no point optimizing rewards if your funds aren’t safe.
To keep would-be attackers at bay, we use advanced security controls such as access authentication, multi-factor authentication (MFA) and hardened perimeter protections. Our validator keys are managed with encrypted devices and zero-trust vaults to ensure our clients’ digital assets are always safe and secure.
Our partnership with Ledger adds an additional layer of security. Using the Ledger Live app, our users can directly manage their assets and track staking rewards while retaining custody of their SOL throughout the staking process.
It’s why Figment is a fully compliant and trusted Staking as a service (StaaS) provider for over 700 institutional clients that include asset managers, exchanges, wallets, foundations and custodians. To take advantage of the safest and highest rewarding Solana staking service available on the market, connect with us today.
