Native vs Liquid Staking on Solana
Native staking locks SOL in a stake account only you control; liquid staking gives you a tradable token (an LST like JitoSOL or mSOL) you can use across DeFi. Both earn the same underlying rewards — what sets them apart is liquidity, control and the risks you take on along the way.
What native staking is
Native staking means you delegate SOL directly to a validator from your own wallet. The SOL sits in a stake account only you control, rewards land and compound automatically every epoch (about 2 days), and no smart contract sits between you and the protocol. The one constraint: to get the SOL back you deactivate the stake and wait out a short cooldown, usually under two days. New to it? Start with how to stake Solana.
Liquid staking and LSTs
Liquid staking routes your SOL through a stake pool. In return you receive a liquid staking token (LST), a standard SPL token that represents your share of the pool. The LST does not pay rewards directly. Its exchange rate against SOL drifts upward each epoch as the pool earns, so your yield shows up as the token becoming worth more SOL over time.
Because an LST is an ordinary token, you can hold it, swap it to SOL instantly, or put it to work as collateral and liquidity across Solana DeFi while it keeps earning. Liquid staking is still a minority of staked SOL (high single digits to low-teen percent as of 2026), but its share has grown steadily.
Native vs liquid: side by side
| Native staking | Liquid staking (LST) | |
|---|---|---|
| Custody | Your stake account, non-custodial | Pool contract holds the stake; you hold the token |
| Liquidity | Locked until deactivation + cooldown | Tradable instantly on DeFi markets |
| Exit speed | Rest of the epoch — under 2 days | Seconds via a DEX swap, or wait one epoch to redeem |
| Usable in DeFi | No | Yes (lending collateral, LPs, looping) |
| Rewards | Auto-compounded into the stake account | Accrue as the token's value rises |
| Validator choice | You pick the validator | Pool decides, though some let you direct it |
| Taxes (typical) | Per-epoch rewards often taxed as income | Often deferred until you sell or redeem |
| Extra risk | Validator performance only | Validator + smart contract + possible depeg |
| Best for | Long-term holders | Active users who want flexibility |
The main Solana LSTs compared
If you go liquid, the token you hold matters. The leading LSTs are not interchangeable: they differ in where the yield comes from, how the validator set is chosen, and how widely DeFi accepts the token as collateral.
| LST | Pool | Yield edge | Validator approach | Notable for |
|---|---|---|---|---|
| JitoSOL | Jito | MEV-boosted (highest headline) | MEV-aware validators | Largest TVL, deepest DeFi and exchange support |
| mSOL | Marinade | MEV, restaked into the token each epoch | 100+ validators, decentralization-scored | Original LST (2021), most decentralized set |
| INF | Sanctum | Index across many LSTs | Spread across pools | Liquidity layer; instant LST-to-LST swaps |
| JupSOL | Jupiter | Base, app-integrated | Jupiter-operated | Convenient inside the Jupiter app |
| JSOL / vSOL / jagSOL | JPool / The Vault / JagPool | Base inflation | You can direct the stake | Hold an LST while delegating to Stake.Cake |
JitoSOL and mSOL dominate by size and liquidity, so they are the safest bets for deep DeFi use. The smaller pools, JPool, The Vault and JagPool, are worth knowing because they let you choose the validator behind your LST, including Stake.Cake. Figures here are approximate and shift over time; check current APY, TVL and integrations before committing.
Yield: what each actually earns
The base reward is identical for both routes, because both ultimately delegate to validators. Solana inflation pays staked SOL about 5.5% APY before commission, distributed each epoch in proportion to your stake. On top of that, MEV changes the picture:
- Native staking earns inflation plus whatever MEV your validator passes through. The pass-through is the operator's choice, so it varies from nothing to everything.
- Every major LST above captures MEV, mSOL included: they route to Jito-client validators and restake the tips into the token each epoch. Comparisons that still sort LSTs into “MEV” and “non-MEV” are describing an earlier Solana.
- What actually differs is the pool's own fee, taken off the rewards before they reach the token, and which validators the pool delegates to.
Those are the mechanics. The sizes are smaller than most comparisons imply, so here are the current numbers:
| Route | Validators earned | Pool fee | You keep |
|---|---|---|---|
| Native — median validator baseline | 5.21% | — | 5.21% |
| Stake.Cake our validator | 5.47% | — | 5.47% |
| JitoSOL Jito | 5.37% | 4.0% | 5.16% |
| vSOL The Vault | 5.36% | 5.0% | 5.09% |
| bSOL BlazeStake | 5.24% | 5.0% | 4.98% |
| JSOL JPool | 5.34% | 7.0% | 4.97% |
| jagSOL JagPool | 5.15% | 5.0% | 4.89% |
| JupSOL Jupiter | 5.12% | 5.0% | 4.86% |
| mSOL Marinade | 5.31% | — | — |
“Validators earned” is the yield each pool's validators actually produced. The pool fee is that pool's cut of the rewards, read live from its on-chain stake pool account. “You keep” is what is left for the token holder. Native rows carry no pool layer, so the two columns match; a validator's own commission is already reflected in what it earned. A dash means no fee could be read from the pool's own account, so no net figure is claimed — Marinade's pool is not an SPL stake pool, so it always sits there and its row shows gross only. Yield data via Trillium.
The routes sit closer together than their headline APYs suggest. Every pool above delegates to the same kind of validator, so what those validators earned spans just 0.25 percentage points. What separates the last column is the pool's own fee, running from 4.0% to 7.0% of your rewards. Best to worst among the liquid routes is 0.30 points, or about 3.0 SOL a year on a 1,000 SOL position.
The network-wide average is a different matter, and worth ignoring wherever you see it quoted. Across all stake it sits at 3.93%, far below the median validator's 5.21% — but no delegator receives that number. It is pulled down by validators charging 100% commission: exchanges and operators staking their own SOL, who keep the rewards because there is nobody else to pay. Screen those out and the average lands back near the median. The spread worth acting on is the one in the table above, and it is wider than the gap between native and liquid.
One caveat keeps these numbers honest: they are what each route produced over a past epoch, not a promise about the next one. A validator's commission and reliability decide how much of the theoretical yield reaches you, and both can change after you delegate. To model your own numbers, use the Validator Profit Calculator.
From the validator's seat. Both routes delegate to a node like ours, so the wrapper changes liquidity and tax treatment, not the underlying work. Uptime, skip rate and commission hit every staker the same way, native or liquid.
Instant exit, in practice
This is the clearest practical split between the two. Native staking has one wait: deactivate, then withdraw after the cooldown, usually under two days, with no penalty. See how to unstake Solana for the steps.
An LST gives you two exit routes. You can swap it to SOL on a DEX (for example through Jupiter) in a single transaction, settling in seconds; for ordinary sizes the spread is usually well under 0.25%. Or you can redeem through the pool, which returns native SOL after the next epoch boundary at full value with no spread. Aggregators such as Sanctum also let you swap one LST for another instantly for a small fee, useful for chasing APY or diversifying without unstaking.
Using your LST in DeFi
The reason to accept the extra risk of an LST is capital efficiency: the same SOL earns staking yield and stays productive elsewhere. Common uses:
- Collateral for borrowing on lending markets like Kamino, MarginFi, Drift and Save, so you can borrow against staked SOL without unstaking.
- Liquidity provision in LST/SOL pools to earn trading fees on top of staking yield.
- Looping (borrow, restake, repeat) to amplify yield, which also amplifies risk; treat it as advanced, not a starting move.
Native stake cannot do any of this. If your SOL is just sitting and compounding, that simplicity is a feature, not a limitation.
Taxes: a quick note
The two routes can be taxed differently. Native rewards arrive as new SOL each epoch, which many jurisdictions treat as income on receipt. Most LSTs accrue value through a rising exchange rate rather than new tokens, which can defer recognition until you sell or redeem, similar to an appreciating asset. This is a genuine difference, not tax advice; rules vary by country and change, so confirm with a professional for your situation.
Risks to understand
- Smart-contract risk (liquid only). An LST depends on the pool's code. The major pools run the widely deployed, audited SPL stake-pool program and have no holder-loss history, which lowers but never removes this risk.
- Depeg risk (liquid only). An LST can trade below its SOL value during stress or congestion. Redeeming through the pool returns full value, but selling on the open market in a panic may not. Solana LST depegs have generally been brief (hours), versus weeks for some Ethereum cases in 2022.
- Leverage risk (liquid only). Looping and lending stack extra layers; each added protocol is one more thing that can break. Keep early positions simple.
- Validator performance (both). A validator with downtime or a high skip rate produces fewer rewards to share. This is why choosing a good validator matters in either model.
- Slashing. Solana does not currently slash stake for ordinary downtime, so the practical downside is reduced rewards rather than loss of principal.
Which should you choose?
Choose native if you hold SOL for the medium to long term, want the simplest non-custodial setup, and value automatic compounding with no contract or depeg risk.
Choose liquid if you want your staked SOL to stay productive, as DeFi collateral or liquidity, or if you might need to exit in seconds instead of waiting out a cooldown. For deep DeFi use, the largest LSTs (JitoSOL, mSOL) carry the most liquidity.
You can do both. A common split is a core native position for the long haul plus a smaller liquid position for DeFi. Either route can delegate to Stake.Cake, natively or through JPool, The Vault or JagPool.
Stake your way
Delegate natively for full control, or pick a liquid staking pool that routes to Stake.Cake and keep your SOL liquid while it earns.
FAQ
What is liquid staking on Solana?
You stake SOL through a pool and receive a liquid staking token (LST) such as JitoSOL, mSOL, INF, JSOL, vSOL or jagSOL. The token represents your position, its value rises against SOL as rewards accrue, and it stays tradable and usable across DeFi.
Is native or liquid staking better on Solana?
Neither is universally better, and both earn the same base rewards. Native is non-custodial, compounds automatically and has no contract layer, but the SOL is locked until you deactivate and wait a short cooldown. Liquid stays tradable and works as DeFi collateral, at the cost of smart-contract and depeg risk. Native suits long-term holding; liquid suits flexibility and capital efficiency.
Is liquid staking safe on Solana?
It adds two risks over native staking: smart-contract risk (the pool's code) and depeg risk (the LST trading below its SOL value during stress). Major pools use the widely deployed, audited SPL stake-pool program with no holder-loss history, but the risk is never zero. Solana LST depegs have been brief, usually hours.
JitoSOL or mSOL: which is better?
Both capture MEV, so this is not a choice between yield sources. JitoSOL has the largest TVL and the deepest DeFi and exchange support; mSOL is the original LST, with the most decentralized validator set and the longer track record. What separates them in practice is the pool fee — compare the last two columns in the table above.
Do you pay tax on liquid staking?
It depends on your jurisdiction. Native rewards arrive each epoch and are often treated as income on receipt. Most LSTs accrue value through a rising exchange rate rather than new tokens, which can defer recognition until you sell or redeem. This is not tax advice; confirm with a professional.
How long does native unstaking take?
After you deactivate, the stake stops earning at the next epoch boundary and becomes withdrawable after a short cooldown, usually under two days. With an LST you can skip the wait by swapping to SOL on a DEX in one transaction.
Can I stake to a specific validator with an LST?
Some pools let you direct your stake. With JPool, The Vault and JagPool you can select Stake.Cake as the validator while holding the pool's LST.
What is the best liquid staking token on Solana?
It depends on what you optimize for. JitoSOL has the deepest liquidity and DeFi support; mSOL offers the most decentralized validator set and the longest track record; INF diversifies across many LSTs; and JSOL, vSOL or jagSOL let you choose the validator behind your token. On yield they land within a fraction of a point of each other — the table above shows the current gap.