Difference between native staking and liquid staking

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Phantom offers two ways to stake SOL: native staking and liquid staking. Both earn rewards, but they work differently and suit different needs.

Native staking

With native staking, you delegate SOL directly to a validator on Solana. Your SOL is locked in a stake account and can't be used or traded until you unstake it. Rewards are paid in SOL to your stake account. 

Native staking suits you if you want to participate directly in network security, don't need your SOL in the short term, and prefer not to hold a separate token.

To stake natively, use the Phantom browser extension. For more information, see Stake SOL natively to a validator. Native staking requires minimum of 1 SOL.

Liquid staking

With liquid staking, you stake SOL and receive a liquid staking token (LST) in return, such as Phantom Staked SOL (PSOL). Your LST earns rewards automatically, and you can trade it or use it in DeFi apps while your SOL stays staked.

Liquid staking suits you if you want to keep your SOL flexible, use your staked position in DeFi, or skip the manual withdrawal that native staking requires.

To stake with an LST, see Stake SOL with Phantom liquid staking.

Side by side

Liquid staking Native staking
Minimum None 1 SOL
Availability Phantom mobile app and browser extension Phantom browser extension
What you receive An LST (PSOL) SOL rewards in your stake account
SOL availability LST is tradable and usable in DeFi Locked until unstaked
Unstaking Instant if reserves allow, otherwise 2 to 3 days 2 to 3 day wait, manual withdrawal required
Rewards Reflected as increased LST value Paid as SOL to your stake account
Validator choice Managed by the staking pool You choose a validator
Fees Protocol fee (4%) and exit fee (0.1%) for PSOL None beyond network fees

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