KoinlyticsSolana had a MEV problem: validators had no way to profit from ordering transactions except by running their own bots. This led to spam and network congestion. Jito's solution: a MEV auction that pays validators to include specific transaction bundles.
How Jito works
- Searchers (arbitrage bots, liquidators) submit transaction bundles to Jito's block engine.
- Block engine orders bundles by tip.
- Jito-enabled validators (~70%+ of Solana stake) include the top bundles in their block.
- Tips are paid to validators, who share with JitoSOL holders.
JitoSOL
An LST. You stake SOL with Jito, get JitoSOL back, earn validator yield (~7%) plus MEV rewards (~1-2%). Total APR routinely 8-9% vs vanilla SOL staking's 7%.
Why it fixed Solana
Before Jito, arb bots spammed the network with duplicate transactions hoping one would land. This clogged Solana. With Jito's private lane, searchers submit once, pay a tip, and get priority inclusion. Network becomes cleaner, validators earn more, users pay less in retry gas.
JTO token
Governance for Jito. Airdropped Dec 2023 to JitoSOL holders and searchers. Currently governs fee splits and future product direction.
MEV competition on Solana today
- Arbitrage. Cross-DEX (Orca vs Raydium vs Meteora) is constant. Prices reconcile in one block.
- Liquidations. Kamino, Marginfi. Sub-second latency competition.
- Sandwiches. Rare on Solana due to protected mempool + Jito private lanes.