How Does Fragmetric Work?

Restaking|Risk C+|5 mechanisms|4 interactions

Fragmetric is Solana's first native liquid restaking protocol with $21M TVL, using the novel FRAG-22 token standard for fragSOL and fragJTO tokens earning yield from Node Consensus Networks (NCNs). Its C+ grade reflects the untested token standard, leverage-like multi-NCN exposure, early-stage Solana restaking ecosystem, and recent FRAG token price decline.

TVL

$4M

Sector

Restaking

Risk Grade

C+

Value Grade

D-

Core Mechanisms

8.3.1

Novel

Liquid restaking on Solana with fragSOL/fragJTO securing NCNs

Novel: first native liquid restaking on Solana using FRAG-22

3.4.2

fragSOL and fragJTO reward-bearing LRTs

Standard LRT pattern adapted for Solana

3.2.1

NCN slashing for validator misbehavior

Standard slashing model

7.3.1

FRAG token points and airdrop distribution

Standard points-to-token incentive

2.2.4

Novel

FRAG-22 flexible reward distribution from multiple NCNs

Novel token standard for modular reward streams

How the Pieces Interact

Multi-NCN restaking↔Correlated slashingHigh

fragSOL backing multiple NCNs creates leverage-like exposure from correlated failures

FRAG-22 token standard↔DeFi composabilityHigh

Novel token standard may have undiscovered edge cases in DeFi integrations

FRAG token incentives↔Restaking depositsMedium

Mercenary capital may withdraw when emissions decline

Solana restaking ecosystem↔NCN qualityMedium

Early-stage NCNs may have higher failure rates than mature Ethereum AVSs

What Could Go Wrong

  1. FRAG-22 token standard is a novel Solana primitive for liquid restaking that has not been battle-tested through market stress.
  2. fragSOL and fragJTO earn yield from multiple NCNs simultaneously, creating leverage-like slashing risk.
  3. Solana's liquid restaking ecosystem is nascent with less established security infrastructure.
  4. FRAG token -33% price decline over 90 days indicates speculative dynamics.

FRAG-22 Edge Case in DeFi Composability

Moderate

Trigger: DeFi protocol integrating fragSOL encounters FRAG-22 edge case causing incorrect accounting when used as collateral or in liquidity pools

  1. 1.DeFi protocol integrates fragSOL — Smart contracts interact with FRAG-22 reward distribution logic
  2. 2.Edge case causes incorrect balance calculation during rewards — DeFi protocol calculates wrong collateral values
  3. 3.Exploit or error leads to fund loss in DeFi protocol — fragSOL holders in affected protocol lose funds
  4. 4.fragSOL trades at discount — Other protocols pause fragSOL integration
  5. 5.TVL drops as users withdraw to standard Solana staking — NCN security weakens
See all 2 collapse scenarios in the full risk report →

Risk Profile at a Glance

Mechanism Novelty6/15
Interaction Severity8/20
Oracle Surface5/10
Documentation Gaps4/10
Track Record6/15
Scale Exposure0/10
Regulatory Risk2/10
Vitality Risk7/10
C+

Overall: C+ (38/100)

Lower score = safer

More on Fragmetric

Is Fragmetric Safe?

Safety analysis

Is Fragmetric a Good Investment?

Value analysis

Full Risk Report

All mechanisms & interactions

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