# 🔥 vSOL (/about/vsol)









vSOL is the [liquid-staked SOL](/stake/liquid-staking) token from The Vault, designed to make staking both efficient and rewarding.

<img alt="Banner: A person holds a plain orange liquid droplet token beside a small open vault and a flowing ribbon of cream water, representing liquid staking." src="__img0" />

The flow below shows how SOL becomes vSOL and earns staking rewards (Figure 2.1).

<img alt="How vSOL works: stake your SOL with The Vault, mint vSOL at the current exchange rate, The Vault delegates the SOL to validators, and staking rewards raise the vSOL:SOL rate" src="__img1" />

Figure 2.1: How vSOL works

## How vSOL Grows in Value [#how-vsol-grows-in-value]

When the stake pool launched, the vSOL:SOL exchange rate started at 1:1. Staking rewards normally increase the amount of SOL backing each vSOL. Returns are variable, and protocol losses can reduce that backing. A market swap can also price vSOL differently from the pool rate; see [Risks](/risks).

For example (Figure 2.2):

* At launch, holding 100 vSOL is equivalent to 100 SOL.
* After one year, assuming an APY of 7%, that same 100 vSOL will be worth approximately 107 SOL from staking rewards alone.

<img alt="Example: 100 vSOL is worth 100 SOL at launch and about 107 SOL after one year at a 7% APY" src="__img2" />

Figure 2.2: What 100 vSOL is worth after one year

## Your Staking Journey Starts Here [#your-staking-journey-starts-here]

vSOL isn't just about staking. It's about unlocking the full potential of your SOL. Grow your stake, earn rewards, and participate in the governance of Solana's ecosystem, all with vSOL. To stake SOL for vSOL and choose its validator, see [How to direct stake](/stake/how-to-direct-stake); to swap vSOL back to SOL, see [How to unstake your LST](/products/how-to-unstake-your-lst).