Staking strategies
Staking strategies for various needs and preferences
JPool offers a variety of liquid staking options to suit different needs and preferences. Choose the one that best aligns with your goals:
Liquid Staking: effortless staking through our Smart Delegation Strategy.
High-Yield Staking: staking through a special strategy involving capturing MEV (Maximal Extractable Value) in partnership with bloXroute.
Direct Staking: staking to validator(s) of choice with a leverage option.
Liquid Staking
Liquid Staking is an automated, low-maintenance option for staking SOL. With Liquid Staking, you don't need to select or monitor validators yourself. Instead, our Smart Delegation Strategy does it for you. It uses a scoring system to continuously monitor validators in the JPool Delegation Program and allocate pooled SOL among them.
"Liquid" in "Liquid Staking" means that in return for SOL, you get JSOL, JPool's liquid staking tokens (LST). They represent your share of the total stake in JPool. While you hold JSOL in your wallet, their value grows as JPool accrues rewards on your stake. This growth is reflected by the APY metric, which stands for Annual Percentage Yield. For example, if you bought 1 JSOL for 1 SOL today and APY in the coming year were 10%, in one year you would be able to redeem 1.1 SOL for the same 1 JSOL.
During staking period, your SOL are locked in your account. However, you can use JSOL for extra earnings in decentralized finance (DeFi). For example, you can provide JSOL as liquidity to liquidity pools or deposit them to lending platforms to earn additional yield. JSOL holders are also eligible for additional rewards as a members of the JPool Holders Club.
📖➡️ Learn how to stake with Liquid Staking
High-Yield Staking
JPool's High-Yield Staking is a staking option designed to enhance returns through advanced transaction handling. Using bloXroute's Maximum Extractable Value (MEV) and Stake-Weighted Quality of Service (SWQoS) features, the strategy allows delegators to capture additional yield.
Maximum Extractable Value (MEV)
MEV is the additional profit obtained by reordering transactions within a block to prioritize those with the highest potential yield. bloXroute’s network provides JPool validators with faster data access, allowing them to efficiently identify and prioritize profitable transactions. The extra rewards gained from these optimizations are then shared with delegators.
Stake-Weighted Quality of Service (SWQoS)
SWQoS is a prioritization method that allows transactions from larger delegators to be processed more quickly. This increased processing speed raises the chances of capturing profitable MEV opportunities, resulting in higher yields for delegators with larger stakes.
📖➡️ Learn how to stake with High-Yield Staking
💰➡️ Stake with High-Yield Staking
Direct Staking
Direct Staking gives you the flexibility to choose specific validators you want to stake with. With an easy-to-navigate validator list, you can search for validators, review detailed information, and make an informed decision about where to delegate your stake based on your preferences and strategy.
By default you simply stake SOL to a selected validator and receive the equivalent in JSOL, which gives you the freedom to use these tokens across DeFi while the validator keeps earning rewards for you.
Optional leverage
Leverage lets you amplify your direct stake without adding new SOL. When you use leverage, you borrow extra SOL from a lending platform to temporarily increase your stake. As rewards are calculated on this larger balance, your APY rises. The trade-off is exposure: there is a minimal chance that the standing loan behind the position can be liquidated if borrow APY exceeds staking APY for a sustained period of time.
Staking with a leverage
A flash loan supplies extra SOL.
These SOL and your own SOL are staked to JPool.
JSOL are minted and deposited to the lending platform as collateral.
Fresh SOL are borrowed against it.
The borrowed SOL repay the flash loan.
All of it happens inside one atomic transaction.
Deleveraging
A fresh flash loan repays the debt to the lending platform.
The collateral JSOL is released.
Just enough JSOL is unstaked for SOL to settle the flash loan.
The remaining "de-multiplied" JSOL lands in your wallet.
You can deleverage completely or partially.
Risks and numbers to watch
Liquidation is highly unlikely. It can occur if the borrow APY stays higher than staking APY long enough to wipe out your yield. This situation pushes LTV up and the Health Factor down until the lending platform may sell collateral.
Loan-to-Value (LTV) shows how large the debt is relative to the current value of the collateral. Lower is safer: if LTV climbs past its threshold, the lending platform can liquidate your position.
Health Factor converts that buffer into a single safety score: above 1 the position is healthy, at 0.9-1 it's on the edge, below 0.9 it can be liquidated.
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