Announcing Lido for Solana: A Liquid Staking Protocol

Chorus One
Sep 8 · 4 min read

We are thrilled to announce the launch of Lido for Solana. Lido, the leading protocol bringing liquidity to staked assets on Ethereum and Terra, has expanded its offering to Solana. Lido’s liquid staking token for Solana — stSOL — allows its holders to passively earn Solana staking rewards with a diversified set of professional node operators while retaining the ability to collateralize their stake in DeFi applications such as liquidity pools or lending protocols.

Over $6bn have already been staked with Lido by more than 29000 stakers making Lido the largest non-custodial staking protocol for Ethereum and Terra. This overwhelming confidence in Lido’s liquid staking products will only grow with the addition of Lido for Solana to the cohort. As is true with other Lido staking products, Lido for Solana is going to integrate with a number of decentralized finance applications making it easy for stSOL holders to earn passive rewards!

Lido for Solana makes the value locked in staked SOL tokens accessible by issuing stSOL in exchange. Lido for Solana makes Solana staking extremely attractive by providing

  • Liquidity — No delegation/activation delays and the ability to sell your staked tokens
  • One-click staking — No complicated steps
  • Decentralized security — Assets spread across the industry’s leading validators chosen by the Lido DAO

Staking your SOL in Lido

In Proof-of-Stake (PoS) networks, users participate in securing the network by locking up their tokens. They get rewarded as a result in the form of native tokens. The staking assets are used as collateral to register validators in the consensus process. This means that while assets are staked, they are held in an escrow on the network. Consequently, staked assets are inaccessible to the token holder while they are being used to secure the network.

Another restriction in most PoS protocols is that even when a token holder decides to exit a staking position, they are only able to do so with a delay. This is most commonly referred to as the unbonding period. In Solana, this period is known as the deactivation/cooldownand lasts for approximately 2–3 days (1 epoch). There are many costs associated with such illiquidity.

Liquid staking circumvents the opportunity cost of having your tokens locked up in a PoS protocol. In liquid staking, the staked positions are tokenized and derivative tokens are issued. These derivative staked tokens are a claim to the underlying, illiquid staking positions and become the liquid representation of the native token. These liquid tokens can be used in various financial products thereby enabling stakers to earn additional yields and manage their liquidity risk exposure.

Liquid Staking on Solana issues liquid tokens called stSOL which can be used in various DeFi integrations available on the platform. Liquid staking for Solana is available on mainnet at https://solana.lido.fi

Steps to stake

  1. Connect your Wallet to the widget
  2. If your wallet doesn’t have SOL already, transfer some SOL to it, or use the FTX Pay button to fund it with SOL.
  3. Enter the amount of SOL you want to stake, or click MAX if you want to stake the entire available balance.
  4. Click Stake and approve the transaction in your wallet.

After approving your transaction you will see the new stSOL balance reflected on the widget.

Utilizing stSOL

Head over to the DeFi integrations section at https://chorus.one/products/liquid-staking/ and choose your preferred DeFi Integration. Alternatively, visit https://lido.fi/lido-ecosystem to explore the latest decentralized applications where you can use the stSOL token.

Documentation

The complete documentation for the project can be found at https://chorusone.github.io/solido/. Head over to the page to explore staking guides and other technical resources.

Security

The launch on the Solana mainnet was preceded by 2 security audits and an ongoing bug bounty program, highlighting the importance placed on the security of the protocol. The complete source code for the on-chain program has been made publicly available and can be accessed at https://github.com/ChorusOne/solido

Stay Connected

Join the liquid staking revolution by heading over to the widget!

Further information and the latest updates on Lido for Solana can be found on the official website.

About Chorus One

Chorus One offers staking services and builds protocols and tools to advance the Proof-of-Stake ecosystem.

Website: https://chorus.one
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Chorus One

We offer staking and interoperability solutions for over 20 decentralized networks.