How does Staking Solana work?
- 1.Create a new staking account and transfer your SOL into it.
- 2.Delegate the new staking account to the Stake Pool.
- 3.Two epochs later, your stake will be fully active and deposited into the pool.
- 4.In return, you get RUNSOL tokens. These serve as proof of ownership of your share in the pool.
You can use it to gain additional yields by providing ("mining") liquidity in a liquidity pool. There are currently three such pools for RUNSOL.
When providing liquidity to a LP, it is important to be aware of the potential risks presented by impermanent loss, although it has virtually no effect in case of the RUNSOL-SOL pair as it is regulated automatically by the existence of RunStake setting the exchange rate.
Aside from liquidity mining, each of the pools can be used to instantly unstake by swapping your RUNSOL for SOL or USDC (or another cryptocurrency as more LPs are added supporting RUNSOL).
- 1.Return your RUNSOL to the Stake Pool.
- 2.If there is a sufficient amount of SOL in the reserve balance, you receive your SOL immediately transferred into your wallet.
- 3.Otherwise, SOL is withdrawn from multiple validators and placed into several stake accounts under your ownership. All you need to do is unstake all of these. At the end of the epoch, you will be able to withdraw the SOL from the stake accounts.
- 4.The amount received will be your original SOL plus any rewards earned.