What is Lido Staked SOL (STSOL)?

Quick Facts

  • Token name: Lido Staked SOL (stSOL)
  • Blockchain: Solana
  • Type: Liquid staking derivative token
  • Issued by: Lido DAO, developed by Chorus One
  • Fee: 10% on earned staking rewards
  • Reward mechanism: Value appreciation, not token rebasing
  • Protocol status: Discontinued October 2023; frontend ended February 2024

Introduction

stSOL is the liquid staking token issued by Lido for Solana, a protocol that allowed users to stake SOL and receive a tradeable, yield-bearing token in return. It enabled SOL holders to earn staking rewards without locking up their assets or running validator infrastructure.

The token represented a proportional share of the total SOL pool managed by the Lido program on Solana.

History & Background

Lido Finance launched its liquid staking solution for Ethereum in 2020, quickly becoming the largest non-custodial staking protocol in the space. In 2021, Lido expanded to the Solana blockchain through a collaboration with Chorus One, which proposed and developed the Lido for Solana protocol.

The protocol launched on Solana mainnet in May 2021, preceded by two security audits and an ongoing bug bounty program. It gained meaningful adoption before facing financial headwinds in 2023.

How Lido Staked SOL Works

When a user deposited SOL into the Lido program, they instantly received stSOL tokens representing their share of the pool. There were no activation delays or lock-up periods.

The deposited SOL was distributed evenly across a set of Lido DAO-approved validators. As those validators earned staking rewards, the total SOL under management grew — and so did the value of each stSOL token.

Unlike stETH on Ethereum, stSOL is not a rebasing token. Rewards are reflected through the token's appreciating exchange rate against SOL, similar to how Lido's wstETH works.

Tokenomics

stSOL tokens are minted when SOL is deposited and burned when users redeem their stake. The token's value appreciates over time as staking rewards accrue to the pool.

Lido applies a 10% fee on earned rewards (not on the staked principal). This fee is split between node operators, the Lido DAO treasury, and Chorus One as the protocol developer.

Circulating supply ? 106,156 STSOL
Total supply ? 106,156 STSOL
Max supply ? -- STSOL
Updated 2y ago

Ecosystem & Use Cases

stSOL was designed to be composable with the broader Solana DeFi ecosystem. Users could deploy their stSOL across platforms like Saber, Raydium, and Serum to provide liquidity, earn additional yield, or use it as collateral in lending protocols — all while continuing to accumulate base staking rewards.

Team, Governance & Community

Lido for Solana was governed by the Lido DAO, with LDO token holders able to vote on key parameters like fee structures. Day-to-day protocol management on Solana was initially handled via a multisig by Lido stakeholders. Chorus One served as the primary technical developer for the Solana implementation.

Advantages

  • No lock-up period: Users received stSOL instantly with no waiting or unbonding delays.
  • Passive yield: Staking rewards accrued automatically through token value appreciation.
  • DeFi composability: stSOL could be used across multiple Solana DeFi applications for additional yield.
  • Decentralized validator set: Stake was spread across multiple DAO-approved validators, reducing concentration risk.

Risks & Challenges

  • Protocol discontinued: Lido on Solana stopped accepting new stakes in October 2023, and its web frontend was shut down in February 2024 due to financial challenges and low fee revenue.
  • CLI-only unstaking: After the frontend shutdown, users can only unstake via the Command Line Interface, increasing complexity for non-technical holders.
  • Smart contract risk: As with any DeFi protocol, users were exposed to potential vulnerabilities in the on-chain program.
  • Validator slashing risk: Stake distributed to validators carries an inherent risk of slashing penalties.

Long-Term Vision

Although Lido for Solana has been wound down, stSOL remains an important case study in cross-chain liquid staking. The protocol demonstrated the demand for liquid staking derivatives beyond Ethereum and highlighted the operational and economic challenges of sustaining multi-chain staking infrastructure. Existing stSOL holders retain their underlying SOL value and can redeem via CLI.

Frequently Asked Questions

stSOL is a liquid staking token issued by Lido for Solana. It represents a user's proportional share of the total SOL pool staked through the Lido protocol on the Solana blockchain.

Rewards were not distributed as new tokens. Instead, as staking rewards accrued in the pool, the exchange rate of stSOL relative to SOL increased, meaning each stSOL token became worth more SOL over time.

No. Lido on Solana stopped accepting new stakes in October 2023. The web frontend was shut down in February 2024, and users can only unstake using the Command Line Interface (CLI).

Lido applied a 10% fee on earned staking rewards, not on the principal amount staked. This fee was shared between node operators, the Lido DAO treasury, and Chorus One.

Unlike stETH, which is a rebasing token that adds new tokens to your wallet as rewards accrue, stSOL appreciates in value relative to SOL. This makes it more similar to Lido's wstETH on Ethereum.

Lido for Solana was developed by Chorus One, in collaboration with the Lido DAO. Chorus One proposed the protocol expansion and served as the primary technical team for the Solana implementation.

Yes. stSOL was designed to be composable with Solana DeFi applications like Saber, Raydium, and Serum, allowing users to provide liquidity or use it as collateral while still earning base staking rewards.

In September 2023, a governance proposal cited financial challenges and minimal fee revenues. The Lido DAO ultimately decided to wind down the protocol rather than continue subsidizing its operations.