Executive Summary

Gauntlet conducted a comprehensive statistical analysis of user behavior within Jito, a staking platform in the Solana ecosystem, comparing it with its main competitors: Marinade, BlazeStake, and LST(Marginfi).

The analysis examined user behavior across different cohorts based on stake size and user status, aiming to uncover significant trends and insights into the Jito incentive program’s efficacy.

Key findings include:

  1. The current incentive campaign is ineffective in attracting and retaining small-to-large users but effectively generates sustained staking growth among whales.
  2. Jito users have a higher average number of withdrawal operations per account than competitors; however, a low 17% withdrawal rate (the percentage of accounts that withdraw at least once) suggests strong holder retention.
  3. Jito has the highest wallet net-worth average among competitors but one of the lowest LST utilization rates, indicating that it has the most risk-averse users overall.
  4. Many wallets hold at least two kinds of LSTs, reflecting a tendency for diversification among stakers.

Recommendations include:

  1. Redesigning the incentive program to target different user cohorts
  2. Considering targeted staking yields for medium to large stakers
  3. Developing strategies to leverage high net-worth users
  4. Exploring cross-platform partnerships or features to cater to users who diversify their holdings.

Introduction

Jito has recently concluded an incentive campaign to attract and retain users across various stake sizes. The program ran from December 1, 2023, to March 11, 2024. To assess the effectiveness of the incentive program and identify areas for improvement, Gauntlet conducted a comprehensive statistical analysis of user behavior within Jito and compared it with its main competitors: Marinade, BlazeStake, and Marginfi.

The analysis examined user behavior across cohorts based on stake size and user status. The stake size cohorts were defined as follows:

  1. Small Stake Sizes (0-0.1 SOL)
  2. Medium Stake Sizes (0.1-10 SOL)
  3. Large Stake Sizes (10-100 SOL)