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.

• Leveraged Staking: staking with a leverage to amplify yield at the cost of increased risk under Direct Staking or High-Yield Staking strategy.

When you stake SOL under any strategy, you get JSOL, JPool's liquid staking tokens (LST). They represent your share of the total stake in JPool. To learn more about JSOL and how you benefit from them, read JSOL tokens and their benefits.

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.

➡️ Learn how to use Liquid Staking 🔗

➡️ Stake smart 🔗

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.

➡️ Learn how to use High-Yield Staking 🔗

➡️ Stake profitable 🔗

What are MEV and SWQoS?

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.

For more details on this integration, refer to JPool x bloXroute Integration: Unlocking High-Yield Staking Opportunities.

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.

➡️ Learn how to use Direct Staking 🔗

➡️ Stake direct 🔗

Leveraged Staking

Leverage lets you amplify your direct or high-yield stake without adding new SOL at the cost of increased risk exposure. When you stake with a 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.

This option is available for High-Yield and Direct Staking strategies.

➡️ Learn how to use Leveraged Staking 🔗

➡️ Stake direct with leverage 🔗

What are Loan-to-Value (LTV) and Health Factor (HF)?

The trade-off of leverage is exposure: there is a minimal chance that the standing loan behind the position can be liquidated if a borrow rate exceeds your staking APY for a sustained period of time. This situation pushes Loan-to-Value (LTV) up and the Health Factor (HF) 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 (HF) 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.

Using the Alerting feature, you can set JPool to alert you when LTV drops down to dangerous levels (see Step 4 in How to stake with leverage).

This section covers only essentials of leverage to help you get started. To find out more, please read Deep dive into leverage.

Besides the liquidation risks, there are a number of other other risks associated with using a third-party lending platform. For complete and relevant information, please refer to the respective platform's official documentation:

• Save: https://docs.save.finance/getting-started/risks

• Kamino: https://docs.kamino.finance/automated-liquidity/security-and-risks/risks-and-technical

JSOL tokens and their benefits

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.

➡️ Explore extra yield opportunities with our DeFi partners 🔗

➡️ JSOL holders are also eligible for additional rewards as a members of the JPool Holders Club 🔗