Liquid Staking’s Rise In DeFi And How JPool Is Revolutionizing It On Solana

Liquid staking has been a challenging yet transformative sector in the decentralized finance ecosystem. Proof-of-stake blockchains like Ethereum and Solana have been sitting at the forefront of the industry, all thanks to the diverse liquid staking protocols like JPool, a user-centric liquid staking ecosystem that have been simplifying the DeFi entry for mainstream adoption.

PoS networks are secured by staking, where validators commit a certain amount of the blockchain’s native token, e.g., SOL for Solana or ETH for Ethereum, for a fixed duration. Subsequently, the validator receives the rewards for securing the network and processing transactions.

In traditional staking, users would need to lock their tokens to support the network. They would only receive the rewards for staking the digital coins, making these assets illiquid for the duration of the staking period.

Retaining Liquidity

Liquid staking comes to the rescue as the new method allows the participants to stake their tokens while retaining liquidity through derivative tokens. This also allows for capital efficiency, composability, and accessibility within the DeFi ecosystem.​

The liquid staking ecosystem has grown impressively over the last few years. The total value locked for the sector grew from just $35 million in January 2021 to an all-time high of $71 billion in December 2024, according to data from DefiLlama.

Despite the recent market-wide downturn, the liquid staking ecosystem still accounts for over 35% of the total $88 billion DeFi TVL.

In contrast with conventional staking that has extremely limited provisioning, liquid staking protocols would mint Liquid Staking Tokens (or LSTs) which essentially convert respective staked assets into a one-to-one exchange; for example, the JPool space of Solana issues JSOL as its LST. The LST tokens are a measure against the native currencies and are usable on various DeFi platforms. Meanwhile, the original staked assets go on earning rewards.

Stakers would therefore take their JSOL tokens and earn from it, or penetrate other DeFi through JPool’s partner platforms such as Meteora, Save Finance, Raydium, Solayer, Saber, and Orca.

JPool: The Gamechanger

Strengths of liquid staking protocols are APY, user-friendliness, partnerships with other ecosystems, and community. JPool is a global and future-facing liquid staking ecosystem that has proved its reliability within Solana’s DeFi backbone.

Recently, the platform has undergone a splendid rebranding phase with the aim of providing its users with a seamless and bug-free DeFi and liquid staking experience.

JPool enables high-yield into liquid and direct staking for users to have complete control over their assets. Unlike the regular liquid staking protocols that offer their users a measly 2%-5% annual percentage yield, JPool offers a more lucrative package of up to 20% APY. High-yield staking gives further potency to users maximizing returns inside its ecosystem.

Note that JPool allows users to pick a list of operators and stake their assets with the validators of their choosing, thanks to the direct staking feature. The platform intends to roll out an upgrade on its Direct Staking feature in the coming weeks for a better user experience.

As for the protocol, it offers a broad set of tools like Analytics, Validator Toolkit, and Bookkeeper.

These dashboards and solutions allow users to keep track of validator operations, automate the process of maintaining nodes, and receive financial and onchain reports.

JPool’s team is set to attend the TOKEN2049 conference in Dubai on April 30 and May 1, and the Crypto Valley conference in Prague on June 19 to 21 to share its upcoming features, integrations, and potential partners.

Growing with the Holders Club

At the heart of JPool’s community engagement is the Holders Club — an exclusive community initiative designed to reward active and loyal participants within the ecosystem.

The Holders Club rewards loyal community members based on tiered membership. Each tier gives users access to a different set of privileges, offers, and staking boosters.

To become a club member, users need to receive a decentralized ID from Albus Protocol, JPool’s technology partner, in the form of a non-fungible token. Holders Club members can access the DID as an NFT in their crypto wallets.

JPool offers data-driven rewards for its Holders Club members based on their JPoints, the amount of SOL staked, and the staking duration. Users can earn JPoints by holding JSOL, completing simple social media tasks, referring friends, and using JSOL on JPool’s partner platforms.

A New Era for Solana Staking

Liquid staking has become unnecessary as a DeFi concept. Foundations are rapidly being laid for participation through capital efficiency in PoS networks. Already, the leading networks such as Ethereum and Solana have shown that liquid staking is capable of fundamentally changing how users earn and experience the decentralized ecosystem.

Solana is perfectly suited in terms of its high TPS, very low transaction fees, and a developer-friendly architecture to cash in on the transition from traditional staking to liquid staking – with the likes of JPool sitting right at the center of this evolution.

In addition to being technically advanced and having a good effective annual percentage yield (APY), this sometimes stands out from being highly honest and transparent in its offers but also from its ecosystem- and community-oriented ethos. This empowers stakers and operators with many tools to track and maximize their earnings.

Deeper trust, ongoing innovation, and integration with the larger DeFi ecosystem are all necessary for the new era of liquid staking on Solana. JPool may emerge as a leader in this field because it has already established the foundation for leadership in all three. To experience staking happiness like never before, sign up with JPool right now!

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