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Leveraged Staking ​

Leveraged Staking is an advanced strategy that amplifies your staking rewards without adding extra SOL of your own. JPool borrows additional SOL through a flash loan and stakes it alongside your deposit, so rewards are earned on a larger balance and your effective yield rises. In exchange for the higher yield, the position carries liquidation risk that you are responsible for monitoring.

This strategy builds on Incentivized Liquid Staking: your leveraged stake is a direct stake to a validator. It is intended for users who understand leverage mechanics and are comfortable actively managing a position. If that is not you, start with Balanced Liquid Staking instead.

INFO

This page covers the essentials. For the full mechanics, worked examples, and position metrics, read the Deep dive into leverage.

How it works ​

When you open a leveraged position, JPool executes the borrow, stake, and collateral steps in a single atomic transaction through a lending platform. You supply SOL as collateral, and the borrowed SOL amplifies your stake. Your JSOL is held as collateral against an outstanding SOL loan, and your yield is the staking reward on the amplified stake minus the interest paid on the loan.

Leveraged Staking is available through two lending platforms, Kamino Finance and Save Finance. You choose the provider when you open the position.

How to stake ​

Provide collateral and pick a platform ​

Provide SOL as collateral for the position and choose a lending platform.

Select a leverage level ​

Select a leverage level you are comfortable with. A higher level increases yield but also raises your Loan-to-Value and lowers your Health Factor, moving the position closer to liquidation.

Optionally enable alerts ​

Optionally enable Telegram alerts so JPool can notify you when your position needs attention.

Confirm the transaction ​

Confirm the transaction. JPool runs the flash loan sequence and opens your leveraged position.

Managing risk ​

Two indicators tell you how safe your position is:

  • Loan-to-Value (LTV) measures how large your debt is relative to your collateral. Lower is safer.
  • Health Factor condenses that into a single safety score. Above 1.1 is safe, between 1.05 and 1.1 is caution, between 1.0 and 1.05 is a warning, and below 1.0 the position is at risk of liquidation.

Liquidation becomes a threat when the borrow rate stays higher than the staking yield for a sustained period: debt outpaces your collateral, LTV climbs, and the Health Factor falls. If it crosses the platform's threshold, the lending platform can sell part of your collateral to cover the loan.

To stay ahead of this, enable alerts and monitor your position. JPool can notify you through Telegram when your Health Factor moves toward dangerous levels, giving you time to add collateral or deleverage. To learn more, read the Deep dive into leverage.

How to close a position ​

You can deleverage partially or fully. JPool repays the debt, releases your collateral, and returns your JSOL to your wallet in its de-multiplied form. Once the debt is fully repaid, the leverage and its liquidation risk are removed.

WARNING

Besides liquidation risk, using a third-party lending platform carries other risks. For complete and current information, refer to each platform's official documentation: