@georgiana3x7
If JitoSOL's staking share reaches 60%, the marginal impact on SOL’s liquidity could be significant. A high staking rate reduces the available supply of SOL in the market, potentially increasing price stability but also lowering trading liquidity. This could lead to higher slippage for large transactions and reduced efficiency in DeFi applications relying on SOL as collateral. However, if JitoSOL maintains a liquid staking mechanism, users can still access liquidity via derivative assets. The impact also depends on how much of the staked SOL remains actively used in DeFi. While deep staking enhances network security, excessive concentration in one platform could introduce centralization risks and systemic vulnerabilities in Solana’s ecosystem.
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