Introducing jupSOL!
Last updated
Last updated
JupSOL is a liquid staking token (LST) that represents SOL staked to Jupiter’s validator.
Jupiter is bootstrapping a new high-stake validator. The more stake Jupiter’s Validator has, the easier it is for Jupiter to send successful transactions into a congested network, which means users can get their orders filled quicker.
Jupiter worked with us to set up an LST to drive the liquid staking future. For Jupiter’s retail heavy audience, It was a no-brainer to use a LST. This allowed us to create a very native experience of interacting and using jupSOL on jup.ag or sanc.tm/trade and across many future DeFi integrations.
jupSOL improves accessibility and allows anyone to participate in securing the network.
In the future, Jupiter can expand to delegate SOL in jupSOL to multiple validators.
SOL that is deposited into jupSOL is staked. The staking rewards from that SOL accrue to the jupSOL token, which starts at 1:1 with SOL and grows in value over time. For example, if staking rewards are 10% p.a., then after a year, 1 jupSOL == 1.10 SOL. By simply holding jupSOL, you will earn staking rewards.
jupSOL earns staking yields and MEV kickbacks from Jupiter’s Validator, and has no fees.
Additionally, the Jupiter team will be delegating 100K SOL to the Jupiter Validator, and using the yields to enhance the APY of jupSOL to reward jupSOL stakers. Expect to see higher than average APYs on jupSOL compared to regular LSTs.
jupSOL is powered by the SPL stake pool program. The SPL stake pool program is one of the safest programs in the world; it has been audited multiple times, is used by the largest stake pools like JitoSOL and bSOL, and has secured more than $1B of staked SOL over more than two years without an issue.
The program authority is secured by a multisig that includes, among others, members from Sanctum, Jupiter, Mango, marginfi and Jito. Any changes to the program will have to be approved by a majority vote from this multisig. No single party can unilaterally change the program. We plan to significantly grow the size of the multisig and eventually freeze the program.
For more details, check out this post on Sanctum.
jupSOL has the following fees:
0% management fee
0% validator commission
0% stake deposit fee
0.1% SOL deposit fee
0% withdraw fee
We charge a small SOL deposit fee to prevent an arbitrage attack on the pool.
Buying and holding jupSOL helps you earn native staking yields on your SOL; this is the “risk-free” rate of SOL. As an extra incentive to hold jupSOL, Jupiter is pumping all validator MEV rewards into jupSOL. This should lead to higher APY than native staking.
When you hold jupSOL you also help Jupiter improve its transaction inclusion rate, helping all Jupiter users to more easily swap, DCA or limit order in congested conditions.
Jupiter currently supports the Sanctum Router and Sanctum Reserve pool. This means that you can swap for and hold jupSOL natively on Jupiter’s UI, while tapping into Sanctum’s unified LST liquidity sources.
At the time of writing, Jupiter does not support Sanctum Infinity. In the meantime, Sanctum UI may offer better prices. Infinity will be supported on jup.ag soon!
Sanctum has been building liquidity infrastructure for LSTs since 2021. Through Jupiter we have done over $730M of trading volume and power a large proportion of LST swaps on the Solana ecosystem. Sanctum helps Jupiter provide large and deep liquidity to all LSTs, including jupSOL, which allows much cheaper swaps for LST holders.
Sanctum wrote the code to launch the jupSOL LST. We also run an automated crank for jupSOL: as soon as SOL is deposited into jupSOL, it’s picked up and staked immediately to the Jupiter validator.
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