​Fragmetric, a native liquid restaking protocol on the Solana blockchain, has successfully secured a total of $12 million in funding, following its recent $7 million strategic investment round last month.

This latest round was led by RockawayX, with participation from notable investors including Robot Ventures, Amber Group, Hypersphere, and BitGo.

Notably, restaking on Solana began to take shape in late 2023, with more concrete implementations and fundings still occuring as staking gains traction as a popular method for cryptocurrency holders. It allows users to earn passive income by locking up their tokens to support network security. Stakers can earn an Annual Percentage Yield (APY) ranging from 5% to 8%, depending on network conditions and validator performance.

And Fragmetric’s restaking platform is designed to further enhance the economic potential and security of the Solana network by offering users a liquid restaking solution. It allows users to participate in various decentralized finance (DeFi) activities without sacrificing staking rewards, by allowing staked assets to remain liquid.

Fragmetric To Fuel and Expand its Restaking Operations

Fragmetric is set to use its $12M funding for the expansion of FragAsset, the assets involved in Fragmetric’s restaking process.

Notably, since the launch of Phase 2, Fragmetric has been growing at a remarkable pace, as evident by the increasing supply of fragSOL which has more than doubled since then. In this, approximately 50% is being utilized in DeFi and over 43,000 in unique deposit addresses holding assets such as fragSOL and fragJTO.

Established with the goal of optimizing capital efficiency within the Solana network, Fragmetric focuses on Non-Custodial Node (NCN) reward distribution and the management of Liquid Staking Tokens (LSTs).

By leveraging Solana’s token extension capabilities, Fragmetric implements a normalized token scheme that seamlessly integrates various LSTs into restaking platforms. This approach not only enhances liquidity but also strengthens the network’s security and decentralization.

The recent introduction of TipRouter, a feature that automatically reinvests liquidity restaking proceeds, has further enhanced the returns for fragSOL and fragJTO holders on Fragmetric.

Fragmetric has secured $12M in total funding, with our latest $5M strategic round led by @Rockaway_X, with participation from @robotventures, @ambergroup_io, @hypersphere_, and @BitGo. pic.twitter.com/agDwDwSW2x

— Fragmetric (@fragmetric) March 24, 2025

How Restaking Works on Solana

Restaking on Solana is an emerging concept aimed at optimizing the security, decentralization, and capital efficiency of the blockchain network.

Unlike traditional staking, where users delegate their tokens to validators for securing the network, restaking allows staked assets to be used in additional layers of security and utility. It enables users to earn extra rewards without compromising liquidity.

Restaking protocols such as Fragmetric, leverage liquid staking tokens (LSTs) to allow users to stake their SOL while still retaining liquidity. These tokens represent a user’s staked assets and can be further utilized in decentralized finance (DeFi) applications, such as lending, yield farming, and trading.

Thus, as more projects such as Solayer (backed by Binance Labs), Jito, Marinade Finance, Picasso Network, explore modular blockchain security, its high-speed, low-cost transactions can make it an ideal environment for scalable restaking solutions. And with increasing adoption of liquid restaking protocols, Solana could see a new wave of economic activity, further solidifying its position in the decentralized finance (DeFi) space.

The post Solana’s Restaking Protocol, Fragmetric, Secures $12M Funding to Drive Decentralization and Growth appeared first on CoinGape.

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Filed under: News - @ March 25, 2025 1:29 pm