If you’ve taken the opportunity to buy Solana on Exodus and hold it using your Exodus wallet, don’t just hold it!
A recent integration of Exodus wallet on Lido Finance means that you can now seamlessly stake your Solana on a fully liquid basis. Let’s walk through what this integration offers and how you can access it, step-by-step.
What is Lido Finance?
Lido Finance is a multi-chain staking solution that offers liquid staking on Ethereum, Solana, Polkadot, Kusama and Polygon networks. Lido is run via a decentralized autonomous organization (DAO). The DAO provides governance by allocating voting rights to the holders of its native LDO token.
What is Liquid Staking?
Liquid staking allows the token holder to delegate those tokens to a third party service. The service provider then stakes the tokens on behalf of the user. The difference between liquid staking and direct staking is that the user has control over those funds the whole time. They are not locked or inaccessible as they may be when staking directly.
There is also an upside for the blockchain itself. In the case of proof of stake based networks, the network benefits as the practice enables increased liquidity, while bolstering network security.
One additional benefit is that liquid staking gets around the 32 ETH minimum staking requirement that’s currently in place on Ethereum. Staking ETH via Lido is accessible to everyone as there isn’t a minimum staking amount.
How staking Solana on Lido works
When SOL is staked on Lido, you get what amounts to a receipt for that staked crypto in the form of another token known as staked Solana or stSOL. This token represents your staking position. You have full control over it - and you’re free to use it as collateral or to trade it in DeFi markets.
There are a number of ways in which stSOL keeps its peg with the SOL token price. Traders engage in arbitrage and buy stSOL when it drops below the price of SOL. Secondly, the Lido DAO rewards traders who provide liquidity for the stSOL/SOL trading pair.
When it comes to considering stSOL being pegged to SOL, users should always be aware from the outset that liquidity in a Lido derivative token like stSOL plays a major role in the degree to which it is pegged to the SOL unit price at any given time.
So the price of your tokens may deviate from the price of SOL over time.
The best example of this is the case of Lido’s equivalent derivative token related to ETH. Crypto lenders and hedge funds holding outsized positions in stETH against a backdrop of a market with reduced liquidity resulted in the token trading at a substantial discount to ETH.
Twice the yield
The beauty of liquid staking is that not only do users benefit from staking yields, they also have the opportunity to place stSOL in a liquidity pool and receive a second source of yield as a reward for providing liquidity to the market.
It’s just like having your cake and eating it! Here’s our step-by-step guide to how to stake with Lido using Exodus.
Step by step guide: how to stake Solana on Lido via the Exodus Web3 Wallet
Open a tab on your internet browser and go to https://lido.fi/ . Then click on ‘Stake now’.
The next page displays details on the networks supported on the Lido platform. Under Solana, select ‘Stake now’.
On the next screen, enter the amount of SOL you want to stake and click on ‘Connect wallet’.
Next up, click on the tickbox to acknowledge having read the Terms of Service and Privacy Note. Immediately afterwards, select the Exodus Wallet from the list of supported wallets.
This launches your Exodus Web3 Wallet. Enter your wallet password to connect.
To connect your wallet with Lido, click on ‘connect’.
The next screen displays your SOL and stSOL wallet balances. Input the amount of SOL you wish to stake and click on ‘submit’.
The Exodus Browser Extension Wallet will then prompt you to approve the staking transaction. Click on ‘approve’.
You will now get confirmation of having staked your SOL successfully.
You can also see on Lido that you now have updated wallet balances for SOL and stSOL - with the amount of SOL you chose to stake now represented in stSOL.
Open up your Exodus Browser Extension Wallet separately and click on the asset balance tab as shown in the screenshot below.
You can now see your new stSOL balance displayed directly in your Exodus Browser Extension Wallet.
Congratulations! You’ve now successfully staked Solana on Lido via your Exodus wallet. You’ve received stSOL in return - which you’re free to trade as and when you wish.
You’re also free to supercharge your yield by providing your stSOL as liquidity on the liquidity pools integrated on the Lido platform.
This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.