The Vault
  • About
    • πŸš€Our Mission
    • πŸ”₯vSOL
    • ✨Points program
    • πŸ€“Contributors
    • πŸ”’Stake pool address
    • 🏦The Vault Fees
    • πŸ“ˆTokenomics
  • Validators
    • πŸ“ŠDelegation Strategy
    • πŸ’«Get stake from the pool!
    • βœ…Validator Allowlist
    • πŸ›‘οΈValidator Shield Initiative
    • 🏦Kamino Multiply Strategy
    • πŸ”Signing A Message
    • πŸͺ™LST Creator
    • βš™οΈLST Creator Widget
    • πŸ“šLST Creator API
    • πŸ›οΈValidator Application Process
    • πŸ“ƒWaitlist Criteria
    • β˜€οΈAllowlist Criteria
    • πŸ’»Validator Reward Claim Instructions
    • πŸ“¦Stake-as-a-Service (SaaS)
  • Users
    • 🎯Validator target stake
    • 🌊Liquid staking
    • πŸ“ˆStaking APY
    • πŸ‘¨β€πŸ‘©β€πŸ‘§β€πŸ‘¦Multisig staking
    • πŸ””The Vault Discord
    • β˜€οΈDelayed LST unstaking in Solflare Wallet
    • πŸ‘»Delayed LST unstaking in Phantom Wallet
    • πŸ…Squads
    • πŸŽ–οΈUnits
  • πŸ”Risks
  • πŸ”—Links
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On this page
  • 🚧 Challenges of Traditional Staking
  • πŸ’‘ The Solution: Liquid Staking
  • 🌍 Supporting Decentralization
  1. Users

Liquid staking

Maximize your SOL's potential with flexible liquid staking options.

The Solana network relies on validators to maintain its security, operating on a proof-of-stake consensus mechanism. To contribute to the network, SOL must be staked with a validator. However, traditional staking comes with certain limitations:


🚧 Challenges of Traditional Staking

  1. Locked Funds:

    1. Staked SOL is locked for at least 1 epoch (up to 3 days), preventing its use for providing liquidity, generating yield, or other activities.

  2. Limited Decentralization:

    1. Staking with just one validator concentrates stake, which is not ideal for network decentralization.


πŸ’‘ The Solution: Liquid Staking

Liquid staking allows you to stake SOL through a stake pool, like The Vault, and receive a liquid staked token (vSOL) in return. This token represents your staked SOL and unlocks additional opportunities:

  • Provide Liquidity: Use vSOL in liquidity pools to earn additional yield.

  • Generate Yield: Participate in DeFi protocols while earning staking rewards.

  • Collateral for Borrowing: Use vSOL as collateral to borrow funds.


🌍 Supporting Decentralization

By staking through The Vault, your SOL is distributed across multiple validators, aligning with the pool’s community goals. This ensures:

  • Greater network decentralization: Stake is spread among smaller or community-centric validators.

  • Optimized rewards: Your stake continues to grow while maintaining flexibility.

Liquid staking combines the best of both worldsβ€”helping secure Solana while enabling you to maximize the utility of your staked SOL. 🌟

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Last updated 2 months ago

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