Direct Staking

Staking to validator(s) of choice with a leverage option

Overview

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.

➡️ Stake direct 🔗

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.

➡️ Stake with leverage 🔗

Staking with a leverage

1. A flash loan supplies extra SOL.

2. These SOL and your own SOL are staked to JPool.

3. JSOL are minted and deposited to the lending platform as collateral.

4. Fresh SOL are borrowed against it.

5. The borrowed SOL repay the flash loan.

All of it happens inside one atomic transaction.

Deleveraging

1. A fresh flash loan repays the debt to the lending platform.

2. The collateral JSOL is released.

3. Just enough JSOL is unstaked for SOL to settle the flash loan.

4. 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.

Step-by-step guide

How to stake

Before you proceed, don't forget to connect your wallet by pressing Connect wallet at the top.

Solana will take a fee for your staking transactions. To cover it, make sure you have a tiny bit more SOL (~0.00001 SOL) in your wallet than the amount you want to stake.

Step 1. Use the search field and/or filters to find the validator you want to stake to.

Step 2. Press the Details button.

Step 3. In the You stake field on the Direct tab, enter the amount of SOL you want to stake.

Step 4. Press Stake SOL.

Step 5. Approve the transaction when prompted by your wallet app. If it's successful, you will see a confirmation pop-up.

Your stake is delegated directly to the chosen validator via JPool (the validator must be in the JPool Delegation Program). In return, you get JSOL that unlock the benefits of liquid staking.

How to unstake

Before you proceed, don't forget to connect your wallet by pressing Connect wallet at the top.

• Solana will take a fee for your unstaking transaction. To cover it, make sure you have a small fraction of SOL in your wallet (~0.00001 SOL).

• A small fee may be charged for unstaking. Please consult the info page for the current fees.

Step 1. In My Direct Stake Balance, press Unstake for the validator you want to withdraw your stake from.

Unstakable amount shows how many JSOL you can currently exchange back for SOL. If this amount is lower than your stake amount, it means part of your JSOL tokens are locked in DeFi protocol(s).

Step 2a. Press Unstake Instantly to unstake your SOL at once for an extra fee, OR

Step 2b. Press Unstake with Delay to wait till the end of the current epoch and unstake without the additional fee.

Step 3. Approve the transaction when prompted by your wallet app. If it's successful, you will see a confirmation pop-up.

How to stake with leverage

Step 1. Toggle Show Leverage Options.

Step 2. Enter the amount of SOL you want to stake with leverage.

Step 3. Set the Leverage Multiplier slider you’re comfortable with.

For more information, see Risks and numbers to watch.

Step 5. Approve the transaction when prompted by your wallet app. If it's successful, you will see a confirmation pop-up.

JPool runs the flash-loan transaction, updates your balances, and boosts your APY for the stake.

How to deleverage

Step 1. Press Deleverage and Withdraw.

Step 2. Enter how much JSOL collateral you want to withdraw (you can deleverage partially or fully).

Keep in mind that the amount you specify is the multiplied JSOL collateral, which means after deleveraging you will receive "de-multiplied" collateral.

Step 3. Check the updated LTV and Health Factor, then press Deleverage Position and Withdraw Collateral.

Step 4. Approve the transaction when prompted by your wallet app. If it's successful, you will see a confirmation pop-up.

JPool repays the debt, releases collateral (partially or fully) and returns the "de-multiplied" JSOL to your wallet.