As the Solana ecosystem evolves, investors are exploring various staking options, including traditional staking and liquid staking tokens (LSTs) like JitoSOL. This guide will help you understand the different staking methods and their implications.

1. Understanding Solana Staking
2. Types of Staking
3. Popular Staking Methods
4. Liquid Staking Tokens (LSTs)
5. Considerations and Risks
6. Conclusion

Staking Solana allows token holders to participate in network security while earning rewards, providing a passive income stream from SOL holdings.

a) Native Staking:

• Involves staking directly with validators
• Requires warm-up and cool-down periods

b) Liquid Staking:

• Provides immediate liquidity through receipt tokens (LSTs)
• Offers flexibility for use in DeFi applications

a) Direct with Validators

This type of staking is done directly with validators and is done via the non-custodial wallets like Phantom or Solflar

To stake your Solana directly with the validators, you can simply open your crypto wallet.

Select the native asset, for example in this case Solana. You will see an option to stake them directly with the validators.

You will see a very long list of validators, each of them having a different amount of Solana staked with them and also offering a different % return.

The different amount of Solana is derived by the fact that some of these validators are more popular than others. And as a consequence, the fee that they offer varies as well.

Different validator takes different percentage fee for the job that they are providing.

We suggest you to research which is the best validator to stake with, or just go with the largest one for safety.

b) Liquid Staking Protocols:

• Marinade Finance
• Jito (https://jito.network/)

c) Hardware Wallet Staking:

• Ledger.
• This is the same as what we described above when we talk about staking directly with validators, with the only difference that you are staking from your ledger wallet instead of your Non-custodial wallet in the browser or in the app.

d) Centralized Exchanges:

• Bybit and Coinbase

LSTs like JitoSOL offer several advantages:

• Liquidity: Use staked assets in DeFi without unstaking
• Flexibility: Trade, lend, or use as collateral
• Continuous Rewards: Earn staking rewards while maintaining asset mobility

Popular LST options:

• JitoSOL: Offered by Jito Network
• mSOL: Marinade Finance's liquid staking token

LST Use Cases:

• Deposit in liquidity pools (e.g., JitoSOL-SOL pools)
• Use as collateral for borrowing
• Participate in yield farmin

Recommended platforms for JitoSOL:

• Kamino
• Meteora

• Security: Non-custodial solutions generally offer better security
• Validator Selection: Important for native staking
• Smart Contract Risk: Present in liquid staking protocols
• Depeg Risk: LSTs may not always maintain a 1:1 value with SOL
• Complexity: Liquid staking introduces additional layers of complexity
• Fees: May impact overall returns

Staking Solana, whether through native staking or liquid staking tokens, can be a rewarding way to participate in the network. Native staking offers simplicity and direct network participation, while LSTs like JitoSOL provide additional flexibility and DeFi opportunities.

When choosing between native staking and LSTs, consider:

• Your comfort level with DeFi complexity
• Need for liquidity and flexibility
• Risk tolerance
• Desired level of involvement in the Solana ecosystem

Remember to:

• Research thoroughly before committing to any staking method
• Start small when exploring new platforms or LSTs
• Stay informed about network updates and changes in the Solana ecosystem