Liquid staking is a process that allows users to stake tokens (like SOL) with a validator while receiving a liquid, tokenized representation of their staked assets—such as mSOL or bSOL—on a 1:1 or proportionate basis. These liquid staking tokens (LSTs) accrue staking rewards automatically, and because they're fully transferable, users can use them across various DeFi protocols.
Unlike traditional staking, where tokens are locked and illiquid for a set period, liquid staking gives users access to both the benefits of securing the network (earning rewards) and the ability to swap, lend, borrow, or use their staked tokens elsewhere. This approach is increasingly popular on Solana due to low fees, composable yield opportunities, and integrations with protocols like Marinade Finance, Lido, or Jito.
How It Works
Users delegate SOL to a liquid staking protocol such as Marinade or Lido.
The protocol stakes these tokens on the user's behalf and issues them liquid staking tokens (e.g., mSOL, stSOL, bSOL).
The LSTs automatically increase in value as staking rewards are accrued.
Users can trade, collateralize, or use these LSTs in DeFi, while still earning staking rewards.
When they wish to unstake, users return the LSTs to the protocol in exchange for their original SOL and any accrued rewards.
Liquid Staking in Solana’s Ecosystem
Liquid staking is core to Solana’s DeFi landscape, with multiple leading protocols (Marinade Finance, Lido, Jito, BlazeStake) delivering LSTs that integrate natively into Solana DeFi, NFT marketplaces, and even DAO treasuries. By unlocking otherwise locked assets, liquid staking supports deeper liquidity, composability, and innovation across the Solana ecosystem.
Why Is Liquid Staking Important?
Increases capital efficiency—users can earn staking rewards and still have instant liquidity.
Deepens DeFi liquidity and composability, allowing LSTs to be used as collateral or for yield strategies.
Promotes network security, as more SOL is staked through decentralized, distributed validators.
Enables advanced DeFi use-cases, such as leveraged yield farming, derivatives, or DAO treasury management.
🔑 Key points
Liquid staking lets you earn staking rewards while keeping liquidity.
Receive tradable tokens like mSOL or stSOL, usable across Solana DeFi and NFT dApps.
Core to DeFi composability and yield optimization on Solana.
Unlocks benefits over traditional staking: flexibility, capital efficiency, instant DeFi access.
Supported by leading protocols: Marinade, Lido, Jito, BlazeStake.