LST (Liquid Staking Token) is a tokenized form of stake accounts and staking rewards.

Typically, when staking, there is a need to wait until the next epoch (approximately 2 days) to start staking.

Similarly, when unstaking, it is not possible to unstake until the next epoch begins.

To address these inconveniences, a pool of stake accounts is created, and tokens issued as shares of that pool instead of depositing SOL or stake accounts into the pool. These tokens are called LST.

For a list of historical APYs and issuance amounts of LST on Solana, please refer toSolana Compass 🧭.

The pico🙄.sol validator accepts delegation for staking from picoSOL, which is an LST.

picoSOL is an LST managed by sanctum, and it can be easily acquired from platforms likeJupiterorsanctum swapto easily enjoy staking rewards.

(→Check picoSOL on birdeye)

Staking rewards accumulate in the picoSOL LST pool, so the equivalent amount of rewards will be reflected in the price increase of picoSOL tokens.

If you wish to sell, you can do so immediately on platforms like Jupiter or sanctum swap, or you can withdraw as a staking account and convert to SOL in the next epoch (withdraw stake).

Currently, the staking reward APY for the pico🙄.sol validator is approximately 8%. However, we airdrop 10.0 SOL/epoch(=2 days) to the picoSOL LST pool out of the block generation rewards, which increases the APY of picoSOL tokens.

The expected APY varies depending on the total supply of picoSOL tokens. For example, for 50000 picoSOL, the APY would be approximately (8% + 10.0 SOL x 182 epochs / 50000 SOL) = 11.64%.

The current balance of SOL in the pool, remaining issuance of picoSOL, and expected APY are displayed at the top of this page.

In the future, we plan to gradually increase the airdrop of 10.0 SOL/epoch based on the total supply of LST and block rewards situation.

If we plan to decrease this amount, we will announce it on X (Twitter) or on this page at least one month in advance.

In addition to the above APY, picoSOL is a type of SPL token, so you can earn fee income by providing liquidity in DeFi platforms such asOrca Whirlpool.

Risks Due to Critical Bugs in the Program

The stake pool program is a fork of the SPL (Solana Program Library) stake pool program by sanctum, with functionality minimized for single validator use.

On the program level, even the pool administrator (sanctum) cannot withdraw SOL or stake accounts from the pool. Withdrawal of SOL or stake accounts can only be done in exchange for burning LST.

The SPL stake pool program has undergoneaudits, but there may still be critical bugs overlooked in the audits.

The sanctum stake pool program address is SP12tWFxD9oJsVWNavTTBZvMbA6gkAmxtVgxdqvyvhY, and it is published onGitHub.

Risks Due to Program Modification

The sanctum stake pool program employs multisig, but there is a risk of it being modified by malicious programs if collusion or compromise of all private keys occurs.

Furthermore,sanctum multisiginvolves participation from Jupiter, Jito Labs, Laine, Mango Markets, MRGN, sanctum, and BlazeStake. In case of collusion or leakage of all private keys, there is a risk of program modification.

Is there a risk of validators running away with staked SOL or losing SOL due to slashing?

Validators only accept delegation of stake from stake accounts and cannot access the SOL within stake accounts.

Furthermore, Solana does not implement slashing, so there is no risk of staked SOL being lost.

However, there is a risk of the stake rewards becoming zero if the validator suddenly increases the commission to 100%.

Can SOL staked in the LST pool be confirmed on-chain?

Stake accounts in the picoSOL LST pool can be confirmed on-chain at any time.

Stake Account - Active:

Stake Account - Activating:

Stake Account - Inactive:

Where can I find stake accounts after withdrawing stake?

When you withdraw stake, the stake account in the stake pool is separated, and a new stake account is created for the user.

This can be confirmed onsanctum‘s stake accounts page, Phantom, Solflare, and other similar platforms.