# 🎯 Direct Staking (/stake/direct-staking)











The Vault on Solana is a stake pool that allows users to stake their SOL in a decentralized and transparent manner. Users have the ability to delegate their stake to a specific validator through a process called direct staking. The validator does not need to be on The Vault's [approved list](/approved/approved-validators). This document explains how direct staking works and its impact on the pool.

<img alt="Banner: A person directs a single clean orange path from their cream wallet to one selected server tower among several, symbolizing choosing a validator." src="__img0" />

## How Direct Staking Works [#how-direct-staking-works]

Direct staking lets you choose the validator your vSOL supports. An optional leveraged position can increase staking exposure, but borrowing costs and losses can outweigh the additional rewards.

### Directing Stake to a Validator [#directing-stake-to-a-validator]

The user goes to [The Vault dApp](https://thevault.finance/direct-stake), chooses a specific validator on the Direct Stake page and sets their wallet to it by approving a transaction. In this example, Validator X. For the steps, see [How to direct stake](/stake/how-to-direct-stake).

All [vSOL](/about/vsol) in the wallet that is set to Validator X will be used, including vSOL from that wallet in a supported location such as Kamino. The stake bot ensures that specific validator will receive the amount of vSOL that was directed to it (Figure 3.12).

<img alt="Flow showing a user directing a wallet in The Vault dApp to the example Validator X, with all vSOL in the direct-staked wallet used and the stake bot ensuring Validator X receives the directed amount; the validator does not need to be on the approved list." src="__img1" />

Figure 3.12: How direct staking works

### Leveraged Staking and APY [#leveraged-staking-and-apy]

When users deposit vSOL into [Kamino Multiply](/kamino-multiply/kamino-multiply-strategy), they borrow SOL to multiply their staking position. This functions similarly to manual leverage, where users loop: deposit SOL → get vSOL → borrow SOL → deposit borrowed SOL → get more vSOL → repeat.

A larger vSOL position earns staking rewards on more collateral, but net APY also depends on SOL borrowing costs and fees. It can be lower or negative, and the position can be liquidated. Read the [Kamino Multiply risk disclosure](/kamino-multiply/risk-disclosure-kamino-multiply-strategy) (Figure 3.13).

<img alt="Kamino Multiply increases staking exposure and adds borrowing costs. Net returns can be positive or negative, and the position carries liquidation risk." src="__img2" />

Figure 3.13: How leveraged staking works

The user will be able to see the Kamino amounts on their [Direct Stake dashboard](https://thevault.finance/direct-stake) once they connect their wallet. There may be a delay in between updates for this data.

## Impact of Direct Staking [#impact-of-direct-staking]

Direct staking affects the pool in two ways: validator weighting and transparency.

### Increased Validator Weighting [#increased-validator-weighting]

Large direct stake deposits (leveraged or not) will shift the percentage of total TVL assigned to a validator. However, the [Direct Stake Leaders bucket](/delegation/direct-stake-leaders-bucket) and the [Elite Performance bucket](/delegation/elite-performance-bucket) still give each qualifying validator an equal share of [undirected stake](/stake/direct-vs-undirected-stake) (Figure 3.14).

<img alt="Direct stake follows eligible directed vSOL. The Direct Stake Leaders bucket is shared equally among its top 100 qualifying approved validators; Elite Performance is shared equally among its top 50 qualifying approved validators." src="__img3" />

Figure 3.14: What direct staking changes

### Transparency and on-Chain Data [#transparency-and-on-chain-data]

The Vault maintains full transparency regarding validator stakes. Users can track stake distribution on the [Validators page](https://thevault.finance/validators) and in these public repositories:

* [Stakebot data](https://github.com/SolanaVault/stakebot-data)
* [Holdings data](https://github.com/SolanaVault/holdings-data)

## Conclusion [#conclusion]

Direct staking lets you support a chosen validator while retaining vSOL. Optional Kamino Multiply positions increase exposure and carry borrowing and liquidation risks. Use the public dashboard and stakebot data to track allocations.