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How to Stake Solana on Lido

A quick guide on staking your Solana on the Lido widget

Introduction#

‘Lido for Solana’ is a Lido-DAO governed liquid staking protocol for the Solana blockchain. Anyone who stakes their SOL tokens with Lido will be issued an on-chain representation of SOL staking position with Lido validators, called stSOL. This will allow Solana token holders to get liquidity on their staked assets which can then be traded, or further utilized as collateral in DeFi products.

Widget

Lido for Solana staking guide#

In this step-by-step guide, we will learn how to stake your Solana via the Lido staking widget. This guide shows the testnet for demonstration purposes. However, the process remains the same for mainnet. You can use one of the following wallets to connect to Lido. The facility to use the hardware wallet Ledger is also provided. This guarantees an extra layer of security for the user.

  1. Phantom
  2. Solflare
  3. Ledger
  4. Sollet
  5. Solong

Step 1: Create or Restore Phantom Wallet#

Navigate to https://phantom.app/ to create/restore your solana wallet.

Creating the wallet#

If you do not have a wallet you yet, you should create a new wallet and note down the seed phrase and store it in a safe place. Follow the onscreen instructions and make sure to fund your wallet with some SOL tokens before interacting with Lido

Create Wallet Wallet

Restoring the wallet#

If you already have a wallet, you can restore it on Phantom using the associated seed phrase. Follow the online instructions to restore your SOL account.

Restore Restore 2

Logged In#

Once you have funded your Phantom wallet with Solana, you can click on the Phantom extension to see your account details.

logged_in

Step 2: Connect Lido to Phantom#

Once your wallet is setup visit https://solana.lido.fi to stake your SOL tokens. Now connect your Phantom account to the Lido interface.

Connect

Pressing the connect wallet button, on the top right hand corner of the screen, pops up the wallet screen.

Wallets

Selecting your wallet and pressing the connect button takes you to another window with the wallet’s browser extension. On this window you will have to approve the connection. Make sure to verify the details listed on the approval screen by Phantom.

Approve Connection

If you have set a password to open the wallet, you might get prompted to unlock your wallet. You will, then, have to allow Lido to connect to your wallet and fetch its balance. Once connected you would be able to see your balance on the Lido widget.

Connected

Before you interact with the widget further it is important to explore the widget and understand its functionality.

Step 3: Explore the interface#

At the top you can see your account’s information — your current stSOL balance and the number of SOL tokens available for staking. For new account holders, the staked amount (stSOL) will be 0 in the beginning. You can also see the returns you will get by staking with Lido under Lido APR. Below that you can enter the number of SOL you want to stake.

Interface

Account info#

You can go to the top-right corner of the screen and click on your connected account. This lets you take a look at your address and disconnect at any point during the process. The address for the demo account is

Address - yBfu1AzbyRcfoJRU5TcUf59QwntqoFeDDTF9efh6XjL

Blockexplorer URL - https://explorer.solana.com/address/yBfu1AzbyRcfoJRU5TcUf59QwntqoFeDDTF9efh6XjL?cluster=testnet

Its transaction history can be viewed on the blockexplorer here.

Account Info

Connect Dialog

Transaction Parameters#

When you enter the amount of SOL you want to stake, the values below the submit button change automatically. These values give you specific information about the transaction you are about to perform. It tells you the

  • Exchange rate of SOL v/s stSOL at the moment
  • Amount of stSOL you will receive
  • Transaction cost
  • Fee that will be deducted for this transaction

Transaction Params

Lido Statistics#

Just below the transaction parameters you also see global Lido statistics. This gives you a clear idea of how much SOL is being staked worldwide and other information regarding the liquid staking ecosystem.

Lido Params

FAQs#

You can see the FAQ section right below the Lido statistics. It is prudent to familiarize yourself with some of the basic features of liquid staking and the risks involved. The FAQ section also gives more information about the stSOL and its value. In case, you have even more questions you can always reach out to the Lido team or Chorus One for any clarifications. The contact information is given at the end of this article.

Faqs

Step 4: Stake your SOL#

Stake

To stake your SOL with lido enter the amount you wanter to stake. Once you submit you might get redirected to your wallet. On the lido widget will see a pop-up showing the state of your transaction. The Lido widget waits for you to approve this transaction through your wallet.

Note This transaction will only go through if you go back to your wallet and approve it.

Staking

You get additional information about the transaction details while approving the transaction. Go ahead and approve the transaction.

Approve

After verifying the information you can approve now.

Step 5: View the transaction on Blockexplorer#

Once you hit approve on your wallet, you can come back to the lido widget and click on View on Solana Blockexplorer.

View Tx

This is useful as it tells you the current status of your transaction.

Link for the above transaction - https://explorer.solana.com/tx/3jDcSYVRVUEyNfTVZ6T6WaddAKq24wyp5PapndbrzUQj2xbk3LAuSaTp4B2UAfseobQsTNaBsWaW5hzEqPwkyQKB?cluster=testnet

If you look at the Confirmations field you can slowly see it increasing from 0 to 32. Once it reaches the MAX number of confirmations your transaction gets added to the blockchain

Confirmations 1 Confirmations 2 Confirmations 3

Finally after 32 confirmations, our transaction gets confirmed

Confirmations 4

You can now go back to the Lido widget and look at your updated stSOL balance. Just below the stSOL balance, you will also be able to see the amount of SOL you can get back for it a.k.a the exchange rate.

Update

Zooming into the widget we can observe the new SOL balance and the updated stSOL balance

Note 1: We had 2 SOL in the beginning and we staked 1 SOL. We should be left with 1 SOL but we had to pay an additional 0.0021 SOL as the rent for the new stSOL account that got created for us.

Note 2: This rent is a one-time fee that won’t reccur on the next staking transaction.

Updated Balance

Step 6: Unstaking and utlizing stSOL#

To withdraw click on the Unstake tab and enter the amount of stSOL that you would like to unstake in the field provided below.

unstake-amount

Then click unstake and head over to your wallet to approve the transaction.

note

Make sure to note down the transaction hash or the link provided on the screen. This allows for an easier debugging in case of a failed transaction.

unstake-transaction

The Solana blockchain waits for 32 confirmations (called MAX Confirmations) before making a transaction 'final'. Once the transaction gets the MAX Confirmations the Lido program splits off a stake account with the redeemed SOL amount and transfers it to you.

note

Make sure to note down the stake account address by clicking on the blockexplorer link provided on the screen.

unstake-successful

After unstaking go back to your wallet and click on the Solana token balance button.

Click on Solana tokens section

You will see the number of deactivating stake accounts. Click on the stake accounts button.

note

Note that the option to view deactivating stake accounts is visible only in Phantom and Solflare wallets. On Sollet or Solong you will not be able to see these stake accounts. This is not a cause for concern as you can always migrate from Sollet/Solong to either Phantom or Solflare for free

Click on the stake accounts button

You will then see your deactivating stake account where you can keep a track of your deactivating stake.

Deactivating

If you issue the unstake instruction when epoch N is going on, the deactivation will start immediately and your stake will completely deactivate at epoch N+1.

For example, for the stake account shown in the example above the Unstake was done at epoch 225, the stake started deactivating within the same epoch and the SOL became available for withdrawing at epoch 226

epochN+2

After your stake gets completely deactivated you your stake accounts go from deactivating to inactive. You can then withdraw your SOL tokens by clicking on the three dots on the top right.

Deactivated stake

Withdraw your SOL

For users who desire instant liquidity, the preferred option is to exchange stSOL on the open market, e.g. on the supported AMM pools on Saber and Raydium.

Utilizing and exchanging stSOL#

The following AMM pools and markets exist for exchanging stSOL or adding liquidity to pools.

ProviderTypeLink
SaberSwap stSOL for SOLhttps://app.saber.so/#/swap
SaberAdd Liquidity to Poolhttps://app.saber.so/#/pools/stsol/deposit
SaberFarminghttps://app.saber.so/#/quarries/stsol/stake
RaydiumSwap stSOL for USDCRaydium Pool

Resources#

Introducing Lido for Solana - Explaining the SOL liquid staking solution by Chorus One