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About Fragmetric

Fragmetric Protocol

What is Restaking and an LRT?

Restaking

Restaking involves staking an already staked asset (like an LST, e.g., jitoSOL) to secure an additional decentralized service. First introduced by EigenLayer, restaking has evolved to support not only Liquid Staking Tokens (LSTs) but also various other tokens as collateral. This approach enables users to earn additional fees from the new service on top of their standard staking rewards.

Liquid Restaking Token (LRT)

A Liquid Restaking Token, or LRT, represents the assets you have restaked via a specific protocol—such as Fragmetric—and functions similarly to a Liquid Staking Token within the DeFi ecosystem. For instance, fragSOL, the first LRT offered by Fragmetric, generates additional revenues beyond standard Solana validation and MEV rewards.

Fragmetric’s Process

  1. Deposits
    When a user deposits SOL, LSTs, or other SPL Tokens into Fragmetric, they receive an equivalent amount of $fragmetric Asset (e.g., fragSOL).
  2. Normalized Token Program
    Developed by Fragmetric, this program maintains precise conversion ratios between deposited assets and minted $fragmetric Asset. Users’ combined deposits (SOL, LSTs, and other tokens) form a unified basket that Fragmetric allocates across various restaking protocols and NCN/AVS.
  3. Rewards Distribution
    Assets are delegated to partner validators who secure NCN/AVS networks. The earnings from these delegations are distributed to $fragmetric Asset holders. Fragmetric serves as both a portfolio manager and a liquidity layer between users and restaking protocols.

How Are $fragmetric Asset Holders Rewarded?

  • Underlying Yields
    $fragmetric Asset     inherits the yield from any deposited asset that naturally accrues rewards—such as LSTs (Liquid Staking Tokens) that generate staking and MEV returns. When a user unstakes, they can receive more SOL (or other underlying tokens) than initially deposited, reflecting the average APR of all yield-bearing assets in the basket. Conversely, if a deposited asset does not produce any yield on its own, that portion of the deposit will not generate yield for the corresponding $fragmetric Asset tokens.
  • NCN/AVS Rewards
    Besides standard yields, NCN/AVS protocols can distribute rewards in SOL, native tokens, or other assets. Fragmetric leverages transfer hook functionality (unique to Solana) to accurately track and allocate these additional rewards. Each $fragmetric Asset transfer updates the user’s eligibility for NCN/AVS revenue, which can be claimed anytime.

Note: $fragmetric Asset is an OPOS (Only Possible on Solana) LRT; its advanced reward distribution mechanism relies on Solana-specific capabilities not available on Ethereum.

Using $fragmetric Asset in DeFi

Because $fragmetric Asset is a Liquid Restaking Token, it can be leveraged throughout DeFi for numerous purposes. For example, fragSOL can be used in:

  1. Collateral for Borrowing
    Use fragSOL as collateral in lending protocols to borrow other assets while still earning staking and restaking rewards.
  2. Liquidity Provision
    Provide fragSOL as liquidity in DEX pools. This boosts overall liquidity and allows providers to earn transaction fees on top of staking rewards.
  3. Trading on DEXs
    Trade fragSOL on decentralized exchanges. Users can purchase fragSOL directly without depositing into Fragmetric, and they can sell it any time for immediate access to liquidity.
fragSOL is the first $fragmetric Asset introduced by Fragmetric and is central to the Fragmetric ecosystem. For more detailed information, please refer to the Protocol Architecture section.