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Staking strategies ​

JPool offers a variety of liquid staking options to suit different needs and preferences. Choose the one that best aligns with your goals:

INFO

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 Delegation Strategy does it for you. It uses a ranking system to continuously monitor validators in the JPool Delegation Program and allocate pooled SOL among them.

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.

Leveraged Staking ​

Leverage lets you amplify your direct 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 the Direct Staking strategy.

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).

INFO

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

WARNING

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: