Bybit Staked SOL (bbSOL) is a liquid staking token issued by the cryptocurrency exchange Bybit. It represents users' staked Solana (SOL) within Bybit's staking pool and accrues staking rewards directly into the token's value. bbSOL is designed to allow users to earn yield on their SOL holdings while maintaining liquidity and enabling participation in various decentralized finance (DeFi) activities on the Solana network, as well as integrated products on the Bybit platform. ^{[1] [2]}

Overview

Bybit Staked SOL (bbSOL) functions as Bybit's liquid staking solution for the Solana blockchain. When users stake their SOL tokens through Bybit's platform, they receive an equivalent amount of bbSOL. This bbSOL token acts as a receipt for the staked SOL and its accumulated staking rewards. Unlike traditional staking where assets are locked, holding bbSOL provides users with the flexibility to trade, transfer, or utilize their staked position across various platforms without needing to unstake the underlying SOL.

The primary goal of bbSOL is to bridge the gap between centralized finance (CeFi) services offered by Bybit and the decentralized finance ecosystem on Solana. By holding bbSOL, users can potentially maximize their SOL earnings through staking yield while simultaneously exploring opportunities in DeFi protocols or leveraging their bbSOL within Bybit's own product suite. Bybit positions bbSOL as the world's first exchange-backed liquid staking token, aiming to offer stable and consistent rewards by integrating on-chain and off-chain applications.

The value of bbSOL is designed to appreciate relative to SOL over time, reflecting the staking rewards earned by the underlying staked SOL. This means that when a user redeems their bbSOL for SOL, they receive their initial staked amount plus the accumulated rewards, represented by the increased value of bbSOL compared to SOL since the time of staking. This mechanism allows users to benefit from staking rewards without the typical illiquidity associated with staked assets.

Technology

bbSOL operates on the Solana blockchain as an SPL token. The core technology behind bbSOL is the liquid staking mechanism. When a user stakes SOL through Bybit, their SOL is delegated to validators on the Solana network by Bybit's staking infrastructure. In return, the user receives bbSOL tokens. These bbSOL tokens represent a claim on the staked SOL and the staking rewards generated by the validators.

The staking rewards earned by the delegated SOL are automatically compounded into the staking pool. This compounding increases the amount of SOL represented by each bbSOL token over time. Consequently, the exchange rate between bbSOL and SOL is not fixed at 1:1 but increases as rewards are accumulated. This increasing exchange rate is how the staking yield is reflected in the value of the bbSOL token.

Users can redeem their bbSOL for the underlying SOL and accumulated rewards at any time, although the process may involve an unstaking period depending on the Solana network's unstaking mechanism and Bybit's specific implementation. The liquid nature of bbSOL allows it to be freely transferred, traded on exchanges, or used in DeFi protocols, providing flexibility that is not available with natively staked SOL.

Tokenomics

Bybit Staked SOL (bbSOL) is an SPL token on the Solana blockchain. Its tokenomics are tied to the amount of SOL staked through Bybit's liquid staking service.

Key tokenomics data includes:

• Ticker: BBSOL
• Blockchain: Solana
• Max Supply: ∞ (Infinite, as supply is based on staked SOL)

The supply of bbSOL is dynamic and directly corresponds to the amount of SOL that users have staked through Bybit's liquid staking service. As more SOL is staked, more bbSOL is minted, and as SOL is unstaked, bbSOL is burned. The market capitalization and trading volume fluctuate based on the price of bbSOL and market activity. ^{[1] [4]}

Use Cases

Bybit Staked SOL (bbSOL) is designed to offer users multiple avenues for earning yield and participating in the broader crypto ecosystem, leveraging its liquid nature. Its use cases span both centralized (CeFi) and decentralized (DeFi) platforms.

Primary use cases include:

• Earning Staking Rewards: The fundamental use case is receiving bbSOL in exchange for staked SOL to earn yield from Solana network validation. The estimated APY can vary, with figures up to 8% or 10% mentioned depending on the specific product or platform used.
• Trading and Liquidity: As a liquid token, bbSOL can be traded on exchanges, providing immediate liquidity unlike locked staked SOL. It is available for trading against pairs like USDT, USDC, and SOL on platforms such as Bybit, Raydium, and Orca.
• Utilization within Bybit Exchange (CeFi):
  • On-Chain Earn: Users can deposit bbSOL into Bybit's On-Chain Earn product to potentially earn additional yield, with APYs up to 10% mentioned.
  • Unified Trading Account (UTA): bbSOL can be used as collateral within Bybit's UTA, allowing users to access trading opportunities in Spot, Futures, and Options markets without selling their staked position.
  • Margin Staked SOL: Bybit offers a product allowing users to stake SOL and borrow additional SOL using their staked position as collateral, enabling leveraged staking for potentially boosted bbSOL yields.
• Participation in Solana DeFi: bbSOL can be integrated into various decentralized applications (dApps) on the Solana network. Examples include:
  • RateX: Users can deposit bbSOL into RateX's Fixed Yield product for potential earnings up to 10% APY or provide liquidity to RateX's liquidity pools.
  • Other DeFi Protocols: bbSOL can be used in other Solana DeFi protocols for activities such as lending, borrowing, yield farming, and providing liquidity on decentralized exchanges.

The versatility of bbSOL across both CeFi and DeFi platforms aims to provide users with flexibility and multiple strategies to earn yield and manage their SOL holdings. ^{[2] [3] [1] [4]}

Ecosystem Integrations

Bybit Staked SOL (bbSOL) is integrated within the broader Solana ecosystem, allowing its use in various decentralized applications (dApps) and protocols. These integrations expand the utility of bbSOL beyond just staking and trading on Bybit's platform.

Notable integrations and mentions within the Solana ecosystem include:

• RateX Protocol: A Solana-based decentralized exchange offering leveraged yield trading. bbSOL can be deposited into RateX's Fixed Yield product or liquidity pools.
• Sanctum: A platform for staking and trading on Solana that facilitates converting traditional stake accounts into liquid staking tokens.
• Kamino Finance: A Solana-based concentrated liquidity management tool integrating lending, liquidity, and leverage.
• Raydium: An automated market maker (AMM) on Solana that provides liquidity pools and access to Serum DEX liquidity. bbSOL is traded on Raydium.
• Orca: A decentralized exchange native to Solana where users can trade crypto assets and provide liquidity. bbSOL is traded on Orca.
• Solayer: An advanced restaking protocol built on Solana designed to enhance network bandwidth and L1 security.
• Save: An algorithmic, decentralized protocol for lending and borrowing on Solana.
• Marginfi: A decentralized borrowing and lending protocol on Solana offering native yield and risk systems.

These integrations allow bbSOL holders to utilize their liquid staked SOL in various DeFi strategies, such as providing liquidity, lending, and borrowing, thereby potentially increasing their overall yield and participation within the Solana ecosystem. ^{[1] [3]}