Pudgy Penguins has announced plans to boost its presence on Solana beyond the meme space. The platform has announced that it will issue its liquid staking token, PenguSOL, on the blockchain. According to reports, Pudgy Penguins will lend its brand to a growing sector on Solana, challenging other earlier and bigger LST providers.
The LST space is currently picking up speed, as it may be one of the avenues for treasury companies to park their SOL for passive income. Pudgy Penguins launched its LST through Sanctum, a provider of staking-as-a-service. Sanctum offers white-label LST services, which allow teams to simply apply their brand. The tokens have full validator logic, redemption rules, and DeFi access.
PenguSOL is thus a fully functional token. Sanctum’s LST services have also been used by Bybit, Jupiter, and the Backpack exchange. Solana liquid staking already contains over $14B in value locked, while Sanctum validators lock in $2.41B. Value in Solana’s LST protocols doubled since April, as the chain’s DeFi sector grew and built demand for unlocking liquidity.
Pudgy Penguins set to debut PenguSOL in the Solana ecosystem
Pudgy Penguins will provide SOL holders with staking income, without using liquidity. PenguSOL is immediately compatible with DeFi on Solana and is already listed on Jupiter’s services. Pudgy Penguins uses the SOL Strategies validator, with a 6.2% annualized yield. PenguSOL can also be redeemed at any time with no lockups or delays.
The APY proposed by Pudgy Penguins is moderate, but staking with PenguSOL and Sanctum supports the Pudgy Penguins ecosystem and is seen as appealing to the community. In addition to its physical brands, Pudgy Penguins has its presence across the memes and NFTs space. Meanwhile, PENGU remains the top Solana meme token, though still stuck with a price of $0.03.
The Korean won is still important for PENGU, making up over 15% of trading volumes. PENGU has been trading with choppy price moves, abandoning previous rallies. Despite this, the token remains just 25% from its previous high, expecting a potential breakout as altcoins and tokens are still considered capable of having an even stronger season.
The Solana meme space has been more subdued, allowing PENGU to remain at the helm. For now, most tokens, except USELESS, are in the red, as the market has lost its exuberance for memes. Pudgy Penguins is still the third most prominent collection on Ethereum based on its floor price. The collection sank to a floor of 9.25 ETH, close to the lower range for the past three months.
