Announcing gVaults: The First Staking Vaults on Monad

Magma’s v2 contract release incorporates gVaults, a Staking Vaults innovation that expands the frontier of staking infrastructure on Monad. With gVaults, users can choose to stake with one specific validator. This means they will only be exposed to the slashing risk of their selected validator. This feature allows validators to refer their existing customers to enjoy the benefits of liquid staking while retaining stake on their validator. Institutional clients are able to access validator setups with compliance requirements while providing the operational control they need to underwrite participation.

gVaults are the onramp for institutional staking on Monad.

The breakthrough of gVaults lies in retaining fungibility among vaults. Some protocols on other chains have designed systems where each validator effectively releases its own LST. However, this non-fungibility lowers the utility of the LST and increases liquidity fragmentation. gVaults mints the same fungible gMON LST for each depositor. This allows depositors to benefit from all of the many DeFi integrations that are powered by gMON.

Validator Selection

To mitigate against validator underperformance, only gVault whitelisted validators may be delegated towards. There are relative total deposit caps on the amount of MON that may be staked to a particular validator with the default being 0.25% of the total assets of Magma. Validators can apply to have this cap raised in certain conditions where there is demonstrated demand. The cap ensures that if one gVault whitelisted validator is slashed, the slashing loss can be safely socialized across the protocol without significantly lowering the total assets.

We are partnering with a cohort of world class validators including: Chorus One, P2P, Everstake, Simply Staking, Chainlayer, Dteam, Pathrock, Stakely, Blockvision, Node Infra, Blockspace Lab and Forest Staking to launch gVaults. Our selection process is unwaveringly stringent, and we only support validators with a track record and pledge to uphold certain performance metrics. Validators that fail to uphold minimum performance metrics will be removed from the whitelisted set.

With these measures, Magma again commits to their vision of providing Liquid Staking on Monad that is secure, decentralized and stable.

Custom Deposit Portals for Validators

Each validator will receive a customized deposit UI on the Magma site that they share with their clients. The custom deposit UI will be branded for the validator and 100% of MON staked through the UI will be delegated to the validator. Users can manage positions for their gVault deposits and redeem at any time.

Institutions are here

In our conversations with leading validators and institutional funds over the past years, we’ve consistently heard requests for a customizable feature like this. We listened to their feedback, and today we are live on Monad testnet with our production-ready staking vaults platform, which is the third of its kind in all of crypto as of writing this article.

At Magma, we’ve always had an ambitious tech roadmap. Whether it’s our unbeatable low latency performance on MEV, our R&D program towards DVT, or our exceptional decentralized governance roadmap, we remain committed to continue pioneering real innovation on Monad.