Deposits and Withdrawals
Liquid Staking Basics
All SOL deposits are sent to a dedicated ‘reserve account’. To stake deposited SOL the tokens from ‘reserved account’ are then sent to ‘stake account’.
Normally it takes 1 epoch to get a deposit fully activated.
The stake is being distributed amongst the selected validators based on the Delegation Strategy.
When the delegator triggers an eSOL withdrawal, the stake pool will undelegate a proportional amount of staked SOL for the delegator to withdraw. The exact amount of SOL is calculated based on the following exchange rate:
Number of SOL tokens = number of eSOL tokens * exchange rate
Where the exchange rate is:
Exchange rate of eSOL/SOL = total SOL staked / total eSOL minted
To withdraw their staked SOL, a delegator deposits their eSOL tokens into the stake pool and withdraws their proportional amount of SOL. The withdrawal function then burns the delegators' eSOL tokens, keeping the exchange rate constant.