What is liquid staking?
3 min read · updated 10 Jun 2026
Liquid staking is a way to stake your tokens and stay liquid at the same time. You deposit your SOL into a protocol, the protocol stakes it on your behalf, and in return it gives you a tradeable token (a "liquid staking token" or LST) that represents your staked position plus its accruing rewards.
You hold the LST instead of locked-up SOL. You can sell it, lend it, use it as collateral, or just hold it while it appreciates against SOL.
Why this exists
Native Solana staking earns you ~7% APY but locks your SOL until you submit an unstake request and wait 2–4 days for the epoch to clear. That's bearable for long-term holders but bad for anyone who wants their stake to also work in DeFi (lending, providing liquidity, leveraging up, etc.).
Liquid staking solves both problems at once: you get the rewards, you stay liquid, and the underlying staking is professionally managed.
How LST prices work
LSTs are not pegged 1:1 to SOL. The exchange rate increases over time as staking rewards accrue. If 1 JitoSOL = 1.05 SOL today and the pool earns 7% APY, then in a year 1 JitoSOL ≈ 1.124 SOL.
So when you see JitoSOL trading above 1 SOL on a DEX, that's correct — that's the rewards baked into the price.
The major Solana LSTs
- JitoSOL — largest by TVL. Captures MEV in addition to standard staking rewards.
- mSOL (Marinade) — oldest. Auto-distributes across many validators.
- bSOL (BlazeStake) — lets you choose which validator your stake goes to.
All three are battle-tested. JitoSOL has the most DeFi integrations; mSOL has the longest track record. Torn between the top two? See JitoSOL vs mSOL.
Risks to know
- Smart contract risk. An LST is a smart contract. It has been audited, but smart contract risk is never zero.
- De-peg risk. In a "everyone wants out at once" scenario, the LST can trade below its redemption rate on a DEX. mSOL did this briefly during FTX's collapse — recovered within days.
- Centralization concern. If too much SOL is staked through one liquid staking protocol, it concentrates validator influence. Solana's design intentionally fragments LSTs across multiple protocols to avoid this.
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More explainers
- What is staking on Solana?Staking SOL means delegating it to a validator and earning ~7% APY in return. Here is how it works, your options, and the trade-offs.
- What is JitoSOL?JitoSOL is a liquid staking token on Solana that earns staking rewards plus MEV from the Jito client. Here is how it works and why it matters.
- What is Marinade?Marinade is the liquid-staking pioneer on Solana — stake SOL, receive mSOL, and keep your capital usable across DeFi while it earns. Here is how liquid staking works and how Marinade approaches decentralisation.
- JitoSOL vs mSOL: which liquid staking token should you pick?JitoSOL and mSOL are the two biggest liquid staking tokens on Solana. Here is how they compare on yield, safety, DeFi support, and decentralization.
- What is Tensor?Tensor is the NFT marketplace and aggregator built for pro traders on Solana — fast execution, advanced order types, and the TNSR token. Here is what makes it different and who it is for.
- What is Solflare?Solflare is one of the longest-running Solana wallets — a staking-focused, self-custody wallet available as an extension, mobile app, and hardware-friendly tool. Here is what sets it apart from Phantom.