Solana Staking: A Guide to SOL Liquid Staking Tokens and What to Choose

Top SOL Liquid Staking Tokens

If you're looking to dive into Solana staking without tying up all your SOL, you should definitely check out how to stake Solana. 

There are several ways to do this. Here’s the lowdown - you can: 

• Deposit SOL tokens on a centralized platform for staking.
• Assign SOL tokens to a validator on the Solana network for staking.
• Delegate SOL tokens to a liquid staking provider for a tradable derivative token.
• Operate your own network validator and gain support by having others delegate their SOL to you (this method is not for everyone).

Among them, liquid staking stands out as the most capital-efficient solution as you can earn staking rewards while joining DeFi with your receipt tokens. Now, below are the top players in the SOL liquid staking game:

• JitoSOL
• mSOL (Marinade)
• JupSOL (Jupiter)
• bSOL (Solblaze)
• bbSOL (Bybit)
• BNSOL (Binance)

Each of these offers competitive APYs, so you can maximize your rewards while keeping your tokens liquid. But which one is the best fit for you? Let's dive into a detailed review of each type of token below to help you make an informed decision and find the perfect match for your staking needs. 

1. JitoSOL

JitoSOL is one of the most innovative SOL liquid staking tokens in the market, leveraging cutting-edge tech like MEV (Maximal Extractable Value) rewards through its Jito Stake Pool. 

• APY: 7.49%
• Pros:
  • MEV Rewards: By partnering with enhanced validators, JitoSOL maximizes yield through MEV transaction rewards, increasing overall returns. This is a unique edge in the Solana staking ecosystem.
  • Liquidity: JitoSOL provides fast, good liquidity, allowing users to stake while maintaining the flexibility to trade or use the tokens in DeFi.
  • Trusted Validators: The Jito pool is run by trusted validators, ensuring reliability and network security.
• Cons:
  • Moderate APY: While 7.49% is competitive, it's not the highest compared to other tokens like bbSOL or JupSOL.
  • Unstake Fees: Users face an unstake fee of 0.1% for delayed unstaking and a variable fee (usually under 0.2%) for instant unstaking, which might eat into profits.
• How to start: Buy SOL on MEXC, withdraw to your wallet, and stake at Jito Network.

2. mSOL

Marinade automates monitoring Solana validators and delegates to the top 100+. If you're looking for a tried-and-tested SOL liquid staking option, mSOL is a top contender. 

• APY: 7.82%
• Pros:
  • Protected Staking Rewards: Marinade guarantees 100% uptime protection, meaning your staking rewards are secured.
  • Instant Unstake: You can unstake instantly, giving you liquidity whenever you need it. For someone who’s always looking to move fast, this is a huge advantage.
  • Algorithmic Rebalancing: Marinade’s system dynamically shifts assets to top-performing validators, ensuring maximum yield.
  • Stake Auction Marketplace: Validators bid for staked assets, directly boosting your staking yields—an innovative way to enhance Solana staking rewards.
  • Wide DeFi Integration: With over 20 integrations, mSOL is highly flexible and can be used across various DeFi platforms.
• Cons:
  • Complex for Beginners: While powerful, Marinade’s features can be overwhelming for new users. If you’re just starting your staking journey, it might feel like jumping into the deep end.
• How to start: Buy SOL on Gate.io, withdraw to your wallet, and stake at Marinade.

3. JupSOL 

JupSOL is a powerhouse in the SOL liquid staking ecosystem, offering stakers the opportunity to maximize their yield through Jupiter’s validator, managed by Triton. JupSOL boosts returns by passing along 100% of validator rewards and MEV (Maximal Extractable Value) earnings directly to users.

• APY: 8.96%
• Pros:
  • High APY: The 8.96% APY is among the best for Solana staking rewards, significantly boosted by Jupiter’s MEV pass-through.
  • 0% Fees: There are no withdrawal, management, or validator commission fees, which is rare in the staking world and maximizes net returns.
  • Network Efficiency: JupSOL actively improves Jupiter's transaction rate, making it easier for users to execute swaps, dollar-cost averaging (DCA), and limit orders, even during network congestion.
• Cons:
  • Deposit Fee: A 0.1% SOL deposit fee is the only drawback, which might not seem like much, but it can be a consideration for users staking large amounts.
• How to start: Buy it directly via Jupiter integration on Coin360, or Telegram trading bots like Maestro, and just hold to earn rewards.

4. bSOL 

bSOL by SolBlaze stands out as the first community-run stake pool in the Solana staking space. It’s an ecosystem where stakers can participate in a DAO-based treasury, support Solana projects, and even receive airdrops. 

• APY: 6.99%
• Pros:
  • Earn BLZE Rewards: In addition to staking returns, users can earn BLZE rewards by staking with BlazeStake, giving you more than just SOL rewards.
  • DeFi Integration: You can use bSOL across DeFi applications, increasing liquidity and utility.
  • Non-Custodial & Secure: Security is a priority, with bSOL being a fully non-custodial solution. That’s critical for long-term stakers.
  • Detailed FAQ: SolBlaze provides a thorough FAQ to guide users through the staking process, which makes it accessible even for new participants.
• Cons:
  • Lower APY: At 6.99%, the APY might not be as attractive to yield-maximizing stakers.
  • Unstaking Fees: Both instant and delayed unstaking incur a 0.1% fee, which can add up for larger stakers.
• How to start: Buy SOL on KuCoin, withdraw to your wallet, and stake at SolBlaze.

5. bbSOL

bbSOL is Bybit’s first foray into SOL liquid staking, designed to bridge the gap between centralized exchange services and the decentralized world of Web3. It brings something fresh by leveraging Bybit's platform to offer a seamless experience for both Solana staking and broader Web3 integration. 

• APY: 21.50%
• Pros:
  • Exchange-Backed: Being tied to Bybit, users can easily convert between SOL and bbSOL, making it one of the more liquid staking tokens on the market.
  • Attractive APY: With a solid 21.50% APY, bbSOL provides a unique earning opportunity, leveraging both validator rewards and trading fees to offer substantial returns.
  • MEV and Trading Fees: On top of staking rewards, bbSOL holders benefit from MEV rewards and trading fees, maximizing user earnings.
  • Security: bbSOL utilizes the Sanctum protocol, providing enhanced safety for stakers.
• Cons:
  • Lower TVL: Currently, bbSOL has a lower Total Value Locked (TVL) compared to its more decentralized competitors, which could affect future APY as more users join the pool.
  • Limited DeFi Integration: As a new entrant, bbSOL doesn’t yet have wide DeFi integrations, meaning fewer options for using the token across decentralized finance applications.
• How to start: Buy SOL on ByBit and stake on the exchange.

6. BNSOL

BNSOL is Binance’s solution for SOL liquid staking, allowing users to stake their SOL while keeping it tradable and transferable. 

• APY: 5.3%, yield is calculated dynamically based on Solana staking rewards minus commission. 
• Pros:
  • Exchange-Backed: Binance’s backing ensures seamless conversion between SOL and BNSOL, making it ideal for those who frequently trade on Binance.
  • One-Click Staking: With one-click staking and simple redemption, BNSOL offers one of the easiest ways to get started with Solana staking.
• Cons:
  • Low APY: At 5.3% APY, it’s not the most attractive option for those chasing high yields.
  • Lower TVL: With a relatively low Total Value Locked (TVL), rewards might decrease as more users join.
  • Limited DeFi Use: BNSOL still lacks extensive DeFi integration, limiting its utility beyond staking.
• How to start: Buy SOL on Binance and stake directly on the exchange.

FAQs: Solana Staking

1. How much do you earn staking Solana?

The earnings from Solana staking vary depending on the staking method you choose. For traditional staking, APYs typically range between 5% to 7%, depending on the validator and network conditions. However, with SOL liquid staking, you can potentially earn more through rewards and additional benefits like MEV (Maximal Extractable Value) rewards. For example, JupSOL offers up to 8.96% APY, while other options like mSOL and JitoSOL offer competitive rates around 7-8%.

2. Is it a good idea to stake Solana?

Yes, staking Solana can be a great way to earn passive income while contributing to the security and decentralization of the network. With SOL liquid staking, you also retain access to your tokens while they earn rewards, allowing for more flexibility in trading and DeFi participation. However, it's important to consider the APY, liquidity, and any potential fees before deciding which option suits your needs. Long-term stakers often find Solana staking rewards to be worth the effort, especially with liquid staking offering both yield and liquidity.

3. What are the risks of staking Solana?

While staking Solana is generally safe, there are a few risks to keep in mind:

• Validator Performance: If your chosen validator performs poorly or is slashed for malicious behavior, your rewards could be affected, though loss of your principal is rare.
• Liquidity Risks: In traditional staking, your SOL tokens are locked up, meaning they aren’t immediately accessible. Liquid staking solves this by offering liquidity, but there could be withdrawal or unstaking fees involved, like the 0.1% fee seen with JitoSOL.
• Fluctuating APY: Staking rewards fluctuate based on network conditions and validator performance, and APYs may decrease as more users join the staking pool, like BNSOL, which has a relatively lower APY of 5.3%.

4. Can I lose staked Solana?

Technically, losing your staked SOL is rare, but it is possible under certain circumstances. If a validator is penalized (slashed) for malicious behavior or going offline, you may lose a portion of your staking rewards. However, with most well-established validators, the risk of losing your principal SOL is minimal. For added security, consider using trusted validators and staking pools, like mSOL and JitoSOL, which focus on maintaining high performance and decentralization.

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