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Staking to the Pool

The main purpose of the stake pool is to provide an opportunity for its users to gain extra yield by utilizing a liquid token (eSOL). Staking with Eversol Stake Pool offers several advantages to delegators compared to staking to validators directly:
  1. 1.
    Contribute to Solana ecosystem growth;
  2. 2.
    Enjoy a simplified staking process;
  3. 3.
    Obtain instant liquidity for the SOL staked;
  4. 4.
    Explore integration with partnering DeFi network;
  5. 5.
    Use benefits of the enhanced security of investments through an automated delegation strategy.

The benefits of delegating to stake pool

Safety and Decentralization

You stake to an entire pool of selected validators simultaneously. It helps to achieve maximum network decentralization and optimal staking parameters.

Ease of Use

Stake your assets as in regular staking to earn daily rewards, the rest is handled by Eversol Stake Pool.

Instant Unstake Possibility

Claim the instant unstake to skip the general Solana unstake period and undelegate immediately. Use standard (delayed) unstake if the instant unstake is not available (not enough liquidity in the pool).

Managing Liquidity

By staking SOL you obtain eSOL tokens minted, which you can then use in DeFi, in order to generate additional income. With eSOL, you will be able to swap, add liquidity or farm yield once the stake pool is fully integrated into the ecosystem.

How it Works

The eSOL/SOL exchange rate is used for deposits and reward distribution. The eSOL/SOL rate of exchange (ROE) is determined by the amount of SOL deposited into the pool and the total eSOL minted.
Every eSOL represents a share of ownership of the Eversol Stake Pool. The rate of exchange (ROE) is calculated using the formula:
Exchange rate of eSOL/SOL = total SOL staked / total eSOL minted
Staking process is straightforward:
  1. 1.
    Delegator deposits SOL to Eversol stake pool.
  2. 2.
    Delegator receives eSOL tokens equivalent to the size of their stake in the pool. The pool uses ROE from n-1 (previous) epoch to calculate the amount of eSOL to be minted.
  3. 3.
    Eversol stake pool utilizes an automated delegation strategy to spread the delegator's stake across multiple validators to maximize rewards (this takes ~1 epoch).
  4. 4.
    As new SOL is minted each epoch, the total amount of staked SOL in the pool increases, while the amount of eSOL tokens remains consistent with the amount of SOL deposited. This increases the value of the stake pool tokens. Note: the rewards from the stake pool come in the form of newly minted SOL which is automatically staked to the pool.
  5. 5.
    When a delegator comes to withdraw their staked SOL, they exchange their eSOL back for SOL (receiving more tokens than they staked initially).
  6. 6.
    The withdrawn SOL is placed in a new stake account that belongs to the delegator. They can then withdraw tokens from the stake account back to their primary wallet.
Example:
  1. 1.
    In epoch 223, delegator deposits 10,000 SOL.
  2. 2.
    The protocol issues 10,000 eSOL since the ROE = 1.0.
  3. 3.
    By the 283rd epoch, the delegator decides to make a token withdrawal and sends an instruction to the stake protocol.
  4. 4.
    Current exchange rate (ROE) = 1.0284 since rewards have accrued over the last 60 epochs.
  5. 5.
    Upon SOL withdrawal, delegator exchanges 10,000 eSOL they received during epoch 283 for 10,353 SOL.
Important: staking rewards distribution doesn't influence the delegator's income.
The APY of the pool is calculated according to the formula and is not affected by this allocation. When the delegator unstakes, the eSOL-SOL conversion happens based on the current Rate of Exchange and the APY of the pool.