Solana Leveraged Stake FAQ

mpSOL was deployed in Solana by the Meta Pool DAO, in order to provide users easy access to the benefits of Leveraged Staking.

Why does mpSOL have a higher APY than standard Solana staking?

mpSOL offers a higher APY through leveraged staking, which amplifies the standard Solana staking yield. While traditional Solana staking typically provides an APY of around 8%, mpSOL can achieve an APY of approximately 10% by borrowing additional SOL to increase staking exposure. For example, if you deposit 900 SOL, after one year, your mpSOL should be worth approximately 1000 SOL, assuming a 10% APY. Note: The additional APY from leveraged staking is variable and depends on the availability of borrowed SOL, market conditions, and platform dynamics.

Where does the yield come from?

The protocol uses "leveraged staking" to create extra yield for your tokens. It borrows additional SOL then increase staking exposure and rewards.

What do I get when depositing LSTs in the mpSOL aggregator?

You get mpSOL that is a receipt for the SOL-value of the tokens you deposited.

Is mpSOL tradeable?

Yes, the mpSOL token that you will receive in your wallet after depositing, is a receipt for the SOL-value of the tokens you deposited. It can be traded as any other Solana token. You can use jup.ag to trade mpSOL. You can also provide liquidity for mpSOL<>SOL in orca.so

What are Liquid Staking tokens (LSTs)?

Liquid Staking Tokens in Solana like mSOL, jitoSOL, jupSOL, hubSOL, bSOL, distribute SOL in validators, staking them and giving you a receipt token (LST) representing your staked SOL. In general they provide the standard staking yield for Solana.

Are LSTs interchangeable (fungible)?

Yes. Most LSTs share the same source code from the Solana Program Library (except for mSOL that was the first LST). All of them can be exchanged via the Sanctum platform. All LSTs are just receipts for the underlying token, the staked SOL.

How do I get my LSTs back?

You need to unstake your mpSOL, wait for the unstaking period, and then withdraw from the available LSTs. The yield is continuous, so if you kept your mpSOL for a month and a half, you should expect to get around 1% more SOL than the amount you deposited.

Do I have to withdraw the same token I deposited?

No. You decide which Liquid Staking Token (LST) to withdraw once the unstaking wait period is complete. You can withdraw the same LST you deposited or choose any other available LST offered by the platform. If your preferred LST is unavailable at the time of withdrawal, you can select another LST and later exchange it for your desired token using platforms like Sanctum or Jupiter (jup.ag).