Guide
What Is Liquid Staking? JitoSOL and mSOL Explained
Bottom line: staking you can still "use"
Liquid staking lets you stake SOL while receiving an exchangeable liquid staking token (LST) in return. The leading examples are JitoSOL and mSOL. Ordinary staking locks your funds with a delayed unstake; with liquid staking you can use or trade the LST in DeFi, keeping your liquidity while you earn rewards.
Key takeaways
Liquid staking = stake SOL and receive an LST (JitoSOL/mSOL, etc.). The LST is usable in DeFi, so you keep liquidity. Rewards usually show up as a rising SOL value per LST. But you take on extra smart-contract, operator, and de-peg risk. Basics: How to stake SOL.
How it works (in plain terms)
- Deposit SOL into a protocol (e.g. Jito, Marinade).
- Receive an LST (JitoSOL, mSOL, etc.) as proof of your deposit.
- Behind the scenes, your SOL is delegated across multiple validators and accrues rewards.
- Rewards are usually reflected as a rising SOL value per LST.
- The LST can be used directly in DeFi for collateral, liquidity provision, or trading.
Leading LSTs
| LST | Provider | Notes (neutral) |
|---|---|---|
| mSOL | Marinade | A long-standing Solana LST. Delegates across many validators |
| JitoSOL | Jito | An LST designed to also capture MEV-derived revenue |
Note: this is not an endorsement of any LST or protocol. Yields and fees vary — verify the latest terms officially.
Vs ordinary staking
| Aspect | Ordinary staking | Liquid staking |
|---|---|---|
| Liquidity | Unstaking takes time | The LST is usable/tradable instantly |
| Complexity | Simple | More complex (via smart contracts) |
| Extra risk | Relatively low | Adds contract, operator, and de-peg risk |
Risks to understand
- Smart-contract vulnerabilities: bugs or attacks are possible.
- Operator / centralization risk: you depend on the protocol's operations.
- De-peg: an LST's market price can temporarily diverge from its underlying SOL value.
- Plus the same price-volatility and tax risks as ordinary staking.
Read next
- Basics → How to stake SOL
- Choosing → How to choose a validator
FAQ
Q. What is liquid staking? A. Staking SOL while receiving a proof-of-deposit token (an LST such as JitoSOL or mSOL) that you can also use in DeFi, keeping liquidity while you earn rewards.
Q. What's the difference between JitoSOL and mSOL? A. Both are leading Solana LSTs. mSOL is from Marinade and JitoSOL is from Jito; JitoSOL is known for also capturing MEV-derived revenue. Terms vary, so check officially.
Q. Is it riskier than ordinary staking? A. It adds smart-contract, operator, and de-peg risk. Use it understanding the trade-off between convenience and risk.
Q. How do I receive rewards? A. Usually as a rising SOL value per LST (your number of tokens typically stays the same).
Sources
- Solana staking: https://solana.com/staking
- Jito official: https://www.jito.network/
- Marinade official: https://marinade.finance/
Disclaimer
This article is for general information only and is not investment advice. Crypto assets (including SOL) carry risks such as price volatility, hacking, scams, and network outages. Make your own decisions, verify the latest official sources, and only use funds you can afford to lose.
Sources
FAQ
- What is liquid staking?
- Staking SOL while receiving a proof-of-deposit token (an LST such as JitoSOL or mSOL) that you can also use in DeFi, keeping liquidity while you earn rewards.
- What's the difference between JitoSOL and mSOL?
- Both are leading Solana LSTs. mSOL is from Marinade and JitoSOL is from Jito; JitoSOL is known for also capturing MEV-derived revenue. Terms vary, so verify officially.
- Is it riskier than ordinary staking?
- It adds smart-contract, operator, and de-peg risk. Use it understanding the trade-off between convenience and risk.
- How do I receive the rewards?
- Usually as a rising SOL value per LST; your number of tokens typically stays the same.
This article is informational only and is not financial, investment, or trading advice. Prices are reference snapshots and may be outdated. Always do your own research.
