Solana continues to stand out as one of the most dynamic blockchains in the decentralized ecosystem, with staking playing a central role in its network security and economic activity. Unlike traditional proof-of-work systems, Solana operates on a delegated proof-of-stake (dPoS) model, enabling users to stake their SOL tokens by delegating to validators—without the need to run their own nodes. This accessibility has contributed to over $61 billion worth of SOL being staked, surpassing even Ethereum in total staked value.
However, while native staking is widespread, liquid staking—where users receive tradable tokens representing their staked assets—remains underdeveloped on Solana. Only about 6.5% of staked SOL is currently in liquid form, compared to 65% of staked ETH on Ethereum. This gap highlights a massive growth opportunity for Solana’s DeFi ecosystem.
In this deep dive, we’ll explore the current state of liquid staking on Solana, spotlight key protocols like Jito, Marinade Finance, and Jupiter, and examine emerging innovations such as re-staking and modular infrastructure that are shaping the next phase of Solana’s evolution.
👉 Discover how liquid staking can boost your yield potential on high-performance blockchains.
What Is Liquid Staking?
Liquid staking allows users to maintain liquidity while earning staking rewards. Instead of locking up assets during the staking period, users receive a liquid staking token (LST) that represents their staked position. These LSTs can be used across DeFi applications—such as lending, borrowing, or yield farming—unlocking capital efficiency without sacrificing security or rewards.
On Solana, major LSTs include JitoSOL, mSOL, and JupSOL, which together control over 80% of the liquid staking market. Let’s take a closer look at each.
JitoSOL: The Leading Force in Solana Liquid Staking
JitoSOL dominates the Solana liquid staking landscape, accounting for 48% of all liquid-staked SOL—approximately $1.7 billion in value. As the largest LST and one of the top protocols on Solana, Jito has become synonymous with high performance and innovation.
What sets Jito apart is its unique approach to Maximal Extractable Value (MEV). By deploying specialized validators that optimize block construction and fairly order transactions, Jito prevents harmful practices like front-running and sandwich attacks. This not only improves network health but also boosts returns for JitoSOL holders by around 15% through MEV rewards.
Beyond yield enhancement, JitoSOL is deeply integrated into Solana’s DeFi ecosystem. It serves as collateral on platforms like Solend, Drift, and Marginfi, and can be leveraged on Kamino for boosted yields. These integrations create a powerful liquidity flywheel, increasing demand and utility for JitoSOL.
Additionally, Jito’s StakeNet system decentralizes validator selection and reward distribution, enhancing network resilience and fairness. This holistic approach positions Jito not just as a staking provider, but as a foundational pillar of Solana’s infrastructure.
mSOL: Marinade Finance’s Established Contender
Marinade Finance was once the dominant player in Solana’s liquid staking space before being overtaken by Jito. Today, it holds 22% of the LST market with its mSOL token.
Launched in August 2021, mSOL functions similarly to JitoSOL—users stake SOL and receive mSOL, which appreciates over time as rewards accrue. In July 2023, Marinade introduced Marinade Native, allowing direct staking without relying on smart contracts, thereby reducing counterparty risk while maintaining user control.
One of Marinade’s standout features is its Protected Staking Rewards mechanism. Validators must post collateral to participate, ensuring users aren’t penalized due to validator downtime or poor performance. This added layer of protection enhances trust and reliability.
Despite losing some market share to newer entrants like Sanctum, Marinade remains a critical component of Solana’s DeFi stack. Its focus on security and decentralization ensures it will remain a key player in the long term.
JupSOL: Jupiter’s High-Performance Entry
Launched in April 2025, JupSOL quickly captured 10% of the LST market, becoming the third-largest liquid staking solution on Solana. Developed by Jupiter in collaboration with Sanctum, JupSOL offers instant liquidity for staked SOL with added benefits tied to transaction efficiency.
Jupiter delegated 100,000 SOL to its own validators, boosting their influence on the network. On Solana, validators with higher stake have priority in transaction processing. This means that trades executed through Jupiter’s DEX or other platforms using its validators are more likely to succeed quickly—even during peak congestion.
As a result, holding JupSOL doesn’t just earn staking rewards and MEV kickbacks; it actively improves the performance of core DeFi tools within the Jupiter ecosystem. This alignment between user incentives and platform efficiency makes JupSOL a compelling choice for active traders and yield seekers alike.
Sanctum: Solving Liquidity Fragmentation
While Jito, Marinade, and Jupiter lead in terms of LST issuance, Sanctum addresses a broader structural challenge: liquidity fragmentation across multiple LSTs.
Originally launched in February 2021, Sanctum enables whitelisted validators to launch their own branded LSTs while aggregating liquidity across them. Its suite of tools includes:
- Sanctum Router: Enables seamless swaps between different LSTs.
- Sanctum Reserve: Provides instant liquidity for unstaking.
- Infinity Pool: A multi-LST pool that supports an unlimited number of LSTs natively—unlike traditional AMMs limited to two or three assets.
By depositing any LST or SOL into the Infinity Pool, users receive INF, Sanctum’s native LST, which can then be used across DeFi platforms like Kamino and Meteora.
Sanctum’s vision extends beyond aggregation. With upcoming products like Launchpad, Profiles V2, and Pay, it aims to support foundational on-chain economic activities—from identity to payments—making it a critical infrastructure layer for Solana’s future growth.
Re-Staking on Solana: The Next Frontier
Beyond liquid staking, Solana is seeing early momentum in re-staking, where LSTs are used to secure additional networks or services—similar to EigenLayer on Ethereum.
Three notable projects leading this charge are:
Solayer
Solayer builds application-specific chains secured by Solana’s economic security. Leveraging Solana’s fast execution engine (SVM), it enables customized consensus and optimized workloads. Its May soft launch reached a $20 million deposit cap in just 45 minutes, growing TVL to **$127 million**, signaling strong market demand.
Cambrian
Cambrian is developing a modular re-staking layer for Solana, aiming to reduce costs and improve resource allocation. Protocols can rent security from Solana instead of building their own validator sets—positioning Cambrian as a potential “AWS of blockchain.”
Picasso
Initially focused on bridging Solana and Cosmos via IBC, Picasso now acts as a re-staking hub supporting new L2s like Mantis. Its universal re-staking layer allows temporary or permanent security leasing, expanding use cases for SOL and LSTs across ecosystems.
👉 Explore how re-staking could unlock new dimensions of capital efficiency in DeFi.
Frequently Asked Questions (FAQ)
Q: What is liquid staking?
A: Liquid staking lets users stake their crypto assets while receiving a token (LST) that represents their stake. This token remains liquid and can be used in DeFi apps for lending, trading, or yield farming.
Q: Why is liquid staking important on Solana?
A: It increases capital efficiency by allowing users to earn staking rewards while still using their assets across DeFi. With only 6.5% of staked SOL in liquid form, there's significant room for growth.
Q: Which LST has the highest adoption on Solana?
A: JitoSOL leads with 48% market share among LSTs and is widely used as collateral across major DeFi platforms.
Q: Can I lose money with liquid staking?
A: While staking itself carries minimal risk if done through reputable providers, smart contract vulnerabilities or validator slashing could lead to losses. Always assess protocol security before depositing funds.
Q: What is re-staking?
A: Re-staking involves using already-staked assets (like LSTs) to provide security for other protocols or chains, amplifying utility and potentially increasing yields.
Q: How does MEV benefit JitoSOL holders?
A: Jito captures MEV through ethical block-building practices and redistributes it to users, increasing overall returns by approximately 15% compared to standard staking.
Final Thoughts: A Growing Ecosystem Ready for Scale
Solana’s liquid staking ecosystem is still in its early stages—but rapidly evolving. With dominant players like Jito and Marinade laying the foundation, innovative aggregators like Sanctum solving fragmentation issues, and next-gen re-staking protocols expanding utility, the stage is set for exponential growth.
As more users recognize the benefits of liquidity-preserving staking and developers build new use cases around LSTs, Solana’s position as a high-performance blockchain will only strengthen.