Solana Staking Outage Highlights Concentration Risks

A recent outage in Solana's staking ecosystem has raised concerns about concentration risks and network resilience. On [Date], a routing failure at Teraswitch, a staking infrastructure provider, took down approximately 28.83% of all staked SOL for around 33 minutes.

The incident occurred when Marinade Finance, a leading liquid staking protocol on Solana, reported that the outage was triggered by a routing failure at Teraswitch. The autonomous system number associated with the provider, AS20326, held 118.9 million SOL, representing 27.34% of the network's total staked SOL.

Of this amount, 94% went offline simultaneously, causing a sharp drop in network participation. The affected validators missed a combined 333 SOL in staking rewards during the brief period.

The event has highlighted concentration risks inherent in Solana's staking infrastructure, where a single provider or data center can become a single point of failure. Marinade Finance has stated it plans to review its concentration cap standards, which could lead to stricter limits on stake distribution across ASNs and data centers.