What is Liquid Staking? Complete Guide for 2026
You want to stake your SOL to earn yield. But traditional staking locks your assets for days - and if an opportunity comes up, you're stuck.
Liquid staking solves this. You earn staking rewards and keep your assets usable. But here's what most guides won't tell you: not all liquid staking tokens are the same, and the differences matter more than you think.
This guide explains how liquid staking actually works, compares the major Solana LSTs with real data, and helps you decide which approach fits your goals.
How liquid staking works
When you liquid stake, three things happen:
- You deposit SOL into a liquid staking protocol
- The protocol stakes it to validators and gives you a liquid staking token (LST)
- Your LST appreciates in value as staking rewards accrue
Your LST is a receipt for staked SOL. It's not pegged 1:1 forever - it grows relative to SOL over time.
Example: If you deposit 100 SOL today and receive 100 mSOL, in a year that 100 mSOL might be redeemable for ~106 SOL (at current ~6% APY). The mSOL quantity stays the same; its SOL-value increases.
This is called a reward-bearing token - no claiming, no rebasing, just automatic appreciation.
Liquid staking vs native staking
| Factor | Native Staking | Liquid Staking |
|---|---|---|
| APY | ~6-7% | ~6-6.5% (slightly lower due to protocol fees) |
| Liquidity | Locked 2-3 days to unstake | Instant via DEX swaps |
| DeFi composability | None - locked SOL can't be used | Full - use LST as collateral, in LPs, etc. |
| Validator choice | You pick one validator | Protocol distributes across many |
| Risk | Validator performance risk | Smart contract risk + validator risk |
The honest take: If you're just holding SOL long-term and never need liquidity, native staking to a quality validator gives slightly better APY. But most people underestimate how often they do need liquidity - and liquid staking's flexibility often outweighs the ~0.5% APY difference.
Solana LSTs compared
Here's what the major LSTs actually look like right now:
| Token | Protocol | APY (Current) | Key Differentiator |
|---|---|---|---|
| JitoSOL | Jito | 6.09% | MEV rewards included |
| mSOL | Marinade | 6.23% | Stake Auction Marketplace |
| INF | Sanctum | 6.27% | LST aggregator/infrastructure |
| JupSOL | Jupiter | 6.44% | Jupiter ecosystem integration |
| bpSOL | Backpack | 6.65% | Backpack wallet native |
| raSOL | Hubra | ~6%+ | All-in-one DeFi integration |
Data from Sanctum, February 2026
Why the APY differences?
The ~0.5% spread between LSTs isn't random. It comes from:
1. MEV Distribution (Jito) Jito runs modified validator software that captures MEV (Maximal Extractable Value) - essentially, profits from transaction ordering. JitoSOL holders get a share of this. When on-chain activity is high, Jito's effective APY can spike above competitors.
2. Stake Auction Marketplace (Marinade) Marinade's SAM lets validators bid for stake. Higher-performing validators pay more to receive delegations, and that premium flows to mSOL holders. It's a market mechanism that theoretically optimizes for the best validators.
3. Protocol Fees Each protocol takes a cut (typically 5-10% of staking rewards). Lower fees = higher APY for you, but also less protocol revenue for development.
4. Validator Selection How a protocol picks validators affects returns. Some optimize purely for APY; others balance decentralization, uptime, and commission rates.
The Sanctum layer
Here's something most liquid staking guides miss: Sanctum is the infrastructure layer that connects all Solana LSTs.
What this means practically:
- You can swap between LSTs instantly (mSOL → JitoSOL → raSOL) with minimal slippage
- New LSTs get instant liquidity by plugging into Sanctum's unified pool
- No fragmented liquidity - the old problem of "I have mSOL but the opportunity needs JitoSOL" is solved
This is why raSOL, despite being newer, has full liquidity from day one - it's built on Sanctum's infrastructure.
Which LST should you choose?
This depends on what you're optimizing for:
Choose JitoSOL if:
- You want exposure to MEV upside
- You believe on-chain activity will stay high
- You're comfortable with Jito's dominant market position
Choose mSOL if:
- You value Marinade's track record (oldest Solana LST, SOC 2 certified)
- You like the SAM auction mechanism
- You want the most "battle-tested" option
Choose raSOL if:
- You want liquid staking + DeFi yield in one place
- You prefer a simplified experience (no hopping between apps)
- You plan to use your LST in lending/strategies (Kamino, Loopscale integration)
The aggregator approach
If you're already using platforms like Hubra that aggregate DeFi opportunities, the specific LST matters less - you can easily swap between them. What matters more is having a liquid position you can deploy across protocols.
Risks to know about
Smart contract risk
Every LST relies on smart contracts. If there's a bug or exploit, staked funds could be at risk. Mitigation: stick to audited, high-TVL protocols.
Depeg risk
In extreme market conditions, LSTs can trade below their "fair" SOL value. This happened briefly with stETH on Ethereum during the 2022 market crash. On Solana, Sanctum's unified liquidity layer reduces this risk significantly - but it's not zero.
Validator slashing
Solana doesn't currently have slashing (validators losing stake for misbehavior), but this could change. If implemented, liquid staking protocols would need to handle slashing events.
Opportunity cost
At ~6% APY, liquid staking is solid but not spectacular. In a bull market with high DeFi yields, you might find better risk-adjusted returns elsewhere. The advantage is that with an LST, you can also pursue those opportunities (e.g., deposit your mSOL as collateral on Kamino).
How to start
The manual way (multiple apps)
- Go to jito.network, marinade.finance, or sanctum.so
- Connect wallet
- Deposit SOL, receive LST
- If you want to use it in DeFi, go to Kamino/marginfi separately
- Manage positions across multiple dashboards
The aggregated way (Hubra)
- Open hubra.app
- Connect wallet (or sign up with email - no seed phrase needed)
- Stake SOL → receive raSOL
- Browse all yield opportunities in Earn tab
- Deposit raSOL into lending/strategies directly
- Track everything in one portfolio view
The difference: Hubra handles the complexity. You don't need to understand which protocol to use for what - the platform shows you the best opportunities for your assets and lets you act in one click.
FAQ
What APY can I realistically expect? Currently 6-6.5% on Solana. This fluctuates with network inflation and validator performance. Be skeptical of any protocol promising significantly higher - there's usually hidden risk.
Is my SOL safe with liquid staking? Your SOL is delegated to validators, not held by the protocol. The smart contract risk is the main concern. Stick to audited protocols with significant TVL and track record.
Can I lose money? You can't lose your staked SOL principal through normal operation. You can lose relative to holding SOL if the LST temporarily depegs, or if there's a smart contract exploit. Both are rare but not impossible.
How is this different from staking on Coinbase/Binance? CEX staking is custodial - they hold your assets. Liquid staking is non-custodial - you hold the LST in your own wallet. CEXs can freeze withdrawals; with liquid staking, you can swap to SOL on a DEX anytime.
Why not just stake natively for slightly higher APY? If you never need flexibility, native staking is fine. But liquid staking lets you: exit instantly, use your position as collateral, or switch strategies without a 2-3 day wait. That flexibility often justifies the small APY difference.
Bottom line
In 2026, leaving your SOL un-staked means missing ~6% annual yield. With liquid staking, you get that yield without giving up flexibility.
The question isn't whether to liquid stake - it's which approach fits your needs:
- Maximizing raw yield? Compare JitoSOL vs mSOL APYs and pick the leader
- Want simplicity? Use an aggregator like Hubra that handles the complexity
- Building a DeFi strategy? Pick an LST with deep integrations (Kamino, Jupiter, etc.)
Whatever you choose, you'll be earning yield while keeping your assets productive. That's the point.
Ready to start? Explore liquid staking on Hubra →
Last updated: February 2026
APY data sourced from Sanctum. Rates fluctuate - always verify current yields before depositing.
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