What is Liquid Staking on Solana?
Solana staking lets token holders lock up their tokens to help secure and validate the Solana network. In return, they earn staking rewards, paid in $SOL.
While traditional staking allows you to earn yield on your tokens, the downside is that your tokens are locked up, rendering them unusable for other yield-bearing activities such as lending or restaking.
Fortunately, there is another form of staking called “liquid staking.”
Liquid staking allows you to earn rewards on your staked Solana while also receiving a liquid token that can be used in place of your staked tokens.
Jito, our preferred liquid staking provider, issues the $JitoSOL token to users who stake their Solana.Once you stake your Solana and receive $JitoSOL in return, you can use this new token for lending, restaking, and trading just like you would your actual $SOL.
Note:Swapping your Solana for a derivative staked token like $JitoSOL may constitute a taxable event.
Introduction to Jito ($JitoSOL token explained)
Jito is the largest liquid staking platform on Solana. When you stake your $SOL on Jito, you receive a liquid staking token (LST) called $JitoSOL. This token represents your staked Solana and accrues Solana network rewards in real-time.
But here’s where things get interesting: instead of just letting your $JitoSOL tokens sit in your wallet, you can put it to work. You can earn additional yield on your $JitoSOL by lending it out.
In short, $JitoSOL lets you receive staking rewards while still staying liquid, and opens the door to multiple DeFi strategies. It's a win-win for Solana stakers who want yield, liquidity, and flexibility.
It's important to note that the more smart contracts you interact with, the higher the risk of an exploit. Make sure you've thoroughly done your research and are only interacting with reputable platforms that do regular security audits.
If you want to learn where the Milk Road team earns yield on $JitoSOL on the Solana network, check out the Milk Road PRO Portfolio.
$JTO Token vs $JitoSOL Token
Don't confuse the $JTO token with $JitoSOL.
$JTO is the governance token for Jito Labs. Holding $JTO allows you to vote on governance proposals, including protocol upgrades, parameter adjustments, and treasury management.
$JitoSOL is the liquid staking token you receive when users stake Solana on Jito. Both tokens are part of the Jito ecosystem, but they serve different purposes.
Pros and Cons of Liquid Staking Solana via Jito
Pros
- Hold a liquid token even while your $SOL is staked.
- Get even bigger returns on your $SOL by combining staking with other DeFi yield activities.
- Jito is the biggest staking platform on Solana
Cons
- Tax reporting is a hassle and swapping between $SOL and staked $SOL constitutes a taxable event.
- Getting the most out of liquid staking requires a deep knowledge of crypto and DeFi protocols.
Who should consider using Jito to stake SOL?
If you value simplicity above everything else, then liquid staking may NOT be the best option for you.
Liquid staking requires that you are comfortable with self-custody wallets and making transactions on DeFi protocols. If you prefer not to learn how to do on-chain activities, then staking via a centralized exchange is a better option for you. Centralized exchanges are perfect for users who want to stake their SOL in the most user-friendly interface.
But if you’re ok with self-custody, want every opportunity to earn yield on your crypto, care about maintaining liquidity and flexibility without locking assets, then liquid staking is definitely something for you to consider.
How to stake Solana (SOL) on Jito: Step by Step
The instructions below will walk you through liquid staking your Solana through Jito. We will be using the Phantom wallet in this example, which can be installed by following these instructions.
Step 1: Navigate to Jito.Network
Head to Jito and press “Stake Now” on the home page.
Step 2: Connect Your Wallet
Click on “Connect Wallet” after which you will be prompted with the following pop-up:
You have multiple wallets to choose from including your Phantom wallet. The site will automatically understand which wallets you have downloaded outlined by “Detected”.
In case you don’t see your wallet in the pop-up above, you can click on “More options” to find it.
Step 3: Input the Amount of $SOL to Stake
Once you have connected your wallet to Jito, input the amount of Solana you wish to stake. You will then see the various parameters for your transaction.
After reviewing the details, click on “Convert to JitoSOL”
Note:It's a good idea to keep at least a small amount $SOL in your wallet to pay for gas fees on future transactions. You will need some $SOL in your wallet if you eventually want to unstake or trade your $JitoSOL.
Step 4: Confirm The Transactions
You will then be prompted to “Confirm” multiple transactions on your Phantom Wallet.
Note:You will not receive an equal amount of $JitoSOL for your $SOL as the two assets are not pegged on a 1-1 basis.Instead, $JitoSOL’s value always increases with time, ensuring that you will receive more Solana than what you have initially staked.
This type of liquid staking token is called anon-rebasing token. Check out the section of "How to claim your staking rewards" down below to learn more.
Step 5: Use Your JitoSOL Across DeFi (Optional)
After a few seconds, once your transaction is confirmed, you will be prompted with this pop-up message.
Click on “View DeFi Opportunities” to see what else you can do with your $JitoSOL.
Wanna learn how we earn additional yield on our $JitoSOL? We've broken it all down in the Milk Road PRO Portfolio. It's probably a good idea to bookmark this page for future reference.
Jito vs Other Liquid Staking Platforms
Below are 3 of the most used liquid staking providers in the Solana ecosystem:
*all figures below are as of April 23rd, 2025
| Name of Liquid Token (LST) | Staking APY | Total Staked $SOL | % of overall $SOL staked | |
|---|---|---|---|---|
| Jito | $JitoSOL | 7.90% | 17,400,000 $SOL | 5.18% |
| Marinade | $mSOL | 8.67% | 9,428,264 $SOL | 2.81% |
| Sanctum | $INF | 9.38% | 641,828 $SOL | 0.19% |
We prefer to use Jito as it captures the majority of the staking market. But, in all fairness, each of these platforms has its own benefits.
For example, Sanctum is a unique staking platform as it aggregates the majority of the LSTs in the Solana ecosystem,including $JitoSOL & $mSOL.
Other notable LSTs on Sanctum are $JupSOL, $bSOL, and $vSOL.
Is Buying $JitoSOL the Same as Staking on Jito?
Yes. An alternate way to stake your Solana is to directly buy $JitoSOL (LST) on a decentralized exchange like Milk Road Swap. Both routes will give you the same staking rewards (by holding $JitoSOL), but they have one key difference outlined below:
Unstaking Process
- Via Jito: If you wish to unstake your Solana on Jito, you’ll need to wait for the Jito unstaking process, which typically takes 1 day. Despite the longer waiting time, the $JitoSOL-$SOL exchange rate on Jito will be slightly better than what you get on Milk Road Swap as we charge a small swap fees (0.15%).
- Via Milk Road Swap: Unstaking your $SOL via Milk Road Swap can be instant, as you can swap $JitoSOL back for $SOL at any time. You can exit whenever you want. Despite the instant liquidity, you receive less $SOL while unstaking through Milk Road Swap due to fees and higher slippage. Traders usually prefer this option.
There is a tradeoff between urgency and quantity. If urgency is the priority, we would suggest unstaking through DEXs like Milk Road Swap.
- Jito: Unstake at a better exchange rate, but has a waiting time of 1-6 days.
- Milk Road Swap:Unstake your $JitoSOL within minutes but at a worse exchange rate.
How To Claim Your Staking Rewards
With liquid staking, you don’t have to worry about claiming rewards manually. Instead, you’re earning rewards daily just by holding your liquid staking tokens, regardless of which one you choose.These rewards automatically accumulate, making the process hassle-free and efficient.
There are different ways to earn yield on your LST, but it depends on the type of liquid staking token (LST) you hold. Some provide rewards by additional tokens while others do it by increasing the value of the token. Each has its benefits, but here’s an outline of the different types of LSTs and how you earn rewards with each of them.
Rebasing Tokens
Rebasing LSTs adjust the supply of their tokens to remain pegged to the price of $SOL.These tokens distribute rewards in the form of additional tokens instead of the token increasing in value.
Non-rebasing / Reward-bearing Tokens
Rewards-bearing LSTs maintain a constant quantity of tokens in your wallet but increase in value with respect to the staking APR.
As these tokens are not pegged to the price of $SOL, it allows users to gain staking rewards through an increase in the token’s value. Jito ecosystem's LST, $JitoSOL, is one of the biggest non-rebasing LSTs in the Solana ecosystem.
Note: Jito distributes rewards every 2 days.
Summary: Is Jito the Best Way to Stake SOL?
Liquid staking issues a new token that represents your staked $SOL. You can then use this new token (liquid staking token or LST for short) to earn additional yield.
The biggest liquid staking protocol on Solana is Jito, and its LST is called $JitoSOL. It lets you earn staking rewards while still staying liquid. It's a win-win for SOL holders who want both yield and flexibility.
For more tutorials on how to make the most of your crypto holdings, visit our new "How To Crypto" YouTube channel.
Frequently Asked Questions
The current APY on Jito sits around 7.90%. Note: This rate keeps changing so it's better to check the APY directly on Jito.
Yes. Being the largest liquid staking token on Solana, majority of Solana dApps support $JitoSOL. That said, there is always risk in crypto. There is a platform risk as the dApp you're interacting with can be hacked or compromised.
JitoSOL is a liquid staking token (LST) when you stake SOL on Jito while mSOL is Marinade's LST. Each LST offers a different APY so check it out before you stake your SOL.
Yes. JitoSOL is well supported across multiple Solana lending platforms including Kamino, the biggest lending platform on Solana.
This report is for informational purposes only and should not be relied upon as a basis for investment decisions, nor is it offered or intended to be used as legal, tax, investment, financial or other advice. You should conduct your own research and consult independent counsel on the matters discussed within this report. Part performance of any asset is not indicative of future results.
It should also be noted that the writer(s) of this report may hold digital assets mentioned in the article at the time of writing.
