Try Quests to earn SOLLiquidity Staking Protocols in Solana
- Welcome to my dashboard, here I'll show the activity from the liquidity staking protocols starting on March 2023.
- I'll focus on both stake activity and their liquidity token swap activity.
- The goal is to see trends for stakers and swappers over which protocol and token they prefer.
Liquidity Staking Protocols change the way users stake. In most Proof-of-Stake blockchains the users decide on which Validator/Node they should stake their assets, however this lead to some problems because the assets could be locked and the staker will need to wait until their assets could be available for withdrawal, another problem is that most stakers will choose the top Validators to stake leading to decentralization problems because the stake pools of the top validators will be higher than the rest.
When a staker decides to use these protocols, is going to receive a staked token based on their stake amount, in the case of Solana, the user will receive a staked $SOL token, and the main incentive is that these staked tokens will increase their value across the time, that means 1 Staked $SOL > $SOL. Receiving these staked tokens have more perks because the user could use immediately their staked token, they could swap it for $SOL, use it to provide liquidity in trading pools, or simply hold it as its price will increase over time.
The Liquidity Staking Protocols will stake the $SOL into a variety of Delegators, improving the decentralization, and will offer different kinds of rewards and incentives to increase the usage of their staked token.
The Liquidity Staking Protocols are:
