Jupiter Staked SOL (JUPSOL) is a liquid staking token that represents staked Solana (SOL) tokens managed by Jupiter's validator, hosted by Triton. This token allows SOL holders to earn staking rewards while maintaining liquidity, making it available for use in decentralized finance (DeFi) applications. All validator rewards, including 100% of the Maximal Extractable Value (MEV), are passed on to JUPSOL holders. ^[1][4][5]

Overview

JUPSOL operates as a liquid staking token on the Solana blockchain. It enables users to earn staking rewards without the need to lock their SOL tokens. Initially, the token maintains a 1:1 value with SOL but appreciates over time as staking rewards accumulate. This system allows flexibility, providing an opportunity to engage in DeFi activities while continuing to receive staking rewards, addressing the limitation of traditional staking where tokens are locked for a fixed duration.

JUPSOL enhances staking yields through various sources, including validator rewards and MEV kickbacks. Jupiter’s validator, bootstrapped with 100,000 SOL, contributes to the Annual Percentage Yield (APY) of JUPSOL. The absence of typical staking service fees further increases returns for stakers.

When SOL is deposited into the JUPSOL system, it is staked through Jupiter’s validator. The staking rewards and MEV are reflected in the increasing value of JUPSOL. Initially, 1 JUPSOL equals 1 SOL, but its value grows over time as rewards are added.

For instance, assuming a 10% annual percentage rate (APR) and a Solana epoch duration of approximately two days, the following occurs:

• After one epoch, 1 JUPSOL equals ~1.000547945 SOL.
• After two epochs, 1 JUPSOL equals ~1.001096191 SOL.
• After one year, the value of 1 JUPSOL grows to ~1.105163349 SOL, due to the compounding of rewards.

JUPSOL holders earn rewards automatically without the need for any additional actions. ^[1][4][5]

Yield Generation

JUPSOL stakers receive rewards from the following sources:

• Staking Rewards: Regular rewards generated by SOL staked with Jupiter’s validator.
• MEV Kickbacks: Jupiter distributes 100% of MEV rewards to JUPSOL holders.
• Validator Delegation: The delegation of 100,000 SOL to Jupiter’s validator further boosts the APY, leading to potentially higher returns compared to typical liquid staking tokens (LSTs).^[3][6]

Fee Structure

JUPSOL operates with the following tariff structure:

• 0% management fee
• 0% validator commission
• 0% stake deposit fee
• 0.1% SOL deposit fee, aimed at preventing arbitrage attacks
• 0% withdrawal fee

A 0.1% SOL deposit fee is implemented by Jupiter to protect against arbitrage attacks, ensuring the pool remains secure and that long-term stakers benefit from the system.^[1][4][5][6]

Security

JUPSOL is built on the SPL Stake Pool Program, a widely trusted and secure staking mechanism within the Solana ecosystem. This program has undergone multiple audits and is used by several prominent stake pools such as jitoSOL and bSOL. It has successfully managed over $1 billion in staked SOL.

The program’s governance is maintained through a multisignature (multisig) setup, where decisions require the approval of multiple participants. This structure includes members from Sanctum, Jupiter, Mango, marginfi, and Jito, ensuring decentralized control. Future plans include expanding the multisig and eventually freezing the program to further enhance security. ^[1][3][5]

Utility

• Staking Rewards Accrual: Holders of JUPSOL receive staking rewards automatically as the token’s value increases relative to SOL, reflecting the accumulation of staking rewards over time.

• Enhanced APY: The delegation of 100,000 SOL to Jupiter’s validator, combined with additional MEV rewards, may result in higher Annual Percentage Yields (APYs) compared to typical liquid staking tokens (LSTs).

• DeFi Integration: JUPSOL is compatible with decentralized finance (DeFi) protocols, enabling holders to engage in activities such as lending, borrowing, and trading without unstaking their SOL.

• Validator Contribution: By staking with Jupiter’s validator, JUPSOL holders support the validator’s performance, potentially improving transaction processing during periods of network congestion.

JUPSOL provides a liquid staking option for SOL holders, offering both staking rewards and liquidity for DeFi participation. Its secure infrastructure, competitive fee structure, and additional MEV rewards make it a flexible and efficient option for those looking to maximize staking returns. ^{[1][2][4][5][6]}