Introduction: A New Era with Phantom PSOL
On May 15, 2025, the Phantom PSOL launch marked a transformative moment for staking within the Solana ecosystem. Phantom Wallet introduced Phantom Staked SOL (PSOL), allowing users to earn staking rewards while maintaining liquidity. This article delves into the mechanics of Phantom, its advantages, and its wider impact on liquid staking and DeFi growth on Solana.
What Is Phantom PSOL? Exploring Liquid Staking
The Concept of Liquid Staking
Traditional staking on proof-of-stake networks like Solana involves locking up assets to earn rewards. Liquid staking, however, introduces a derivative token like Phantom PSOL to represent staked assets, enabling users to utilize their capital in DeFi applications while still accruing staking benefits.
How Phantom PSOL Functions
Phantom PSOL is a derivative token issued by Phantom Wallet when users stake SOL through its platform. Phantom stakes the SOL with validator nodes, and in return, users receive PSOL tokens that can:
- Be traded or used as collateral
- Participate in lending or borrowing protocols
- Generate additional yield through farming
This dual-purpose design boosts capital efficiency and promotes broader staking adoption.
Benefits of Phantom PSOL for Solana Users
Enhanced Flexibility for Stakers
With Phantom PSOL, stakers no longer face a trade-off between earning rewards and maintaining liquidity. It offers:
- Immediate liquidity access
- Continued engagement in yield-generating protocols
- The ability to exit staking by converting PSOL back to SOL
Boosting DeFi Capital Efficiency
Phantom PSOL enables users to stake once and multiply earning opportunities in DeFi, such as:
- Providing liquidity on platforms like Raydium or Orca
- Using PSOL as collateral on Solend
- Participating in PSOL/USDC yield farms
This synergy between staking and decentralized finance drives ecosystem participation and encourages long-term staking commitment.
Strategic Impact of Phantom PSOL on Solana
Phantom’s Growth as a Solana Hub
The launch of Phantom underscores Phantom’s ambition to evolve beyond a wallet into a comprehensive Solana ecosystem player. This initiative:
- Reduces reliance on external staking services
- Strengthens brand trust through native staking features
- Establishes Phantom as a pivotal DeFi infrastructure provider on Solana
Enhancing Solana’s Network Strength
Liquid staking through Phantom PSOL bolsters Solana’s decentralization and security by encouraging more SOL staking. Unlike idle funds, staked SOL via PSOL supports:
- Increased validator engagement
- Greater network resilience
- Wider user participation
Phantom PSOL vs. Other Liquid Staking Tokens
Comparing PSOL to Competitors
While Marinade (mSOL) and Lido (stSOL) have dominated Solana’s liquid staking space, Phantom brings unique advantages:
- Seamless wallet integration without external interfaces
- Real-time staking rewards visibility within Phantom
- User-friendly design tailored for DeFi beginners
This intuitive experience could help Phantom gain market share, especially among novice stakers.
Detailed Comparison Table
| Criteria | PSOL | mSOL | stSOL |
|---|---|---|---|
| Protocol | Likely associated with a newer or less-documented platform (e.g., Parrot, but unclear). Limited information available. | Marinade Finance: Solana’s first liquid staking protocol, launched August 2021. | Lido Finance: Expanded to Solana in September 2021, but discontinued new staking in October 2023. |
| Token Purpose | Represents staked SOL, assumed to be usable in DeFi (similar to other LSTs). | Represents staked SOL, usable in DeFi for lending, yield farming, or liquidity pools. | Represents staked SOL, usable in DeFi, but new staking is halted; existing holders can unstake. |
| APY (Estimated) | No specific APY data found; likely varies by platform (typically 5-8% for Solana LSTs). | ~7.43% (as of June 2024); can increase with DeFi strategies. | ~5.65% (as of April 2022); lower than Marinade, less relevant now. |
| Liquidity | Unclear; likely lower due to limited documentation and market presence. | Very high: ~$645M TVL, 5.18M SOL staked, widely supported on DEXs like Jupiter, Raydium. | Medium: Declining since Lido’s exit; still tradable on DEXs but less liquid. |
| DeFi Integration | Unknown; assumed to support standard Solana DeFi (e.g., Orca, Saber) if active. | Extensive: Used in Kamino, Drift, Solend, Orca for lending, collateral, liquidity pools. | Supported by Serum, Raydium, Saber, but decreasing relevance. |
| Fees | No data available; typically includes staking and unstaking fees for LSTs. | 6% commission on rewards; unstaking fees 0.1%-9% based on liquidity. | 10% fee on rewards, split among operators, treasury, and developers. |
| Risks | Unknown platform risks; likely includes smart contract and de-pegging risks. | Low: Spread across 225 validators, audited contracts; smart contract and de-pegging risks remain. | Higher: Discontinued support, smart contract risks, potential de-pegging. |
| Validator Distribution | No data; likely fewer validators if a smaller protocol. | 225+ validators, enhancing decentralization and reducing slashing risk. | Large validators with separate machines; less decentralized approach. |
| Unstaking Process | Unclear; likely involves swapping or delayed unstaking (2-3 days). | Swap on DEXs or unstake with 2-3 day epoch delay; fees apply for instant unstaking. | Swap on DEXs or unstake with 2-3 day delay; front-end access ended February 2024. |
| Governance | No data on governance or token (if any). | MNDE token for DAO governance; holders vote on protocol decisions. | LDO token for governance; less relevant for Solana post-discontinuation. |
| Additional Benefits | None documented; may offer niche DeFi rewards if active. | MNDE rewards for staking mSOL; campaigns for extra yield. | None currently; focus on unstaking for existing holders. |
Risks to Consider with Phantom PSOL
Smart Contract Vulnerabilities
Like all liquid staking solutions, Phantom PSOL relies on smart contracts that may have potential weaknesses. Although Phantom has conducted audits:
- Users should proceed with caution and conduct due diligence
- Funds could be at risk due to bugs or validator-related issues
Potential Depegging Concerns
If the demand to redeem PSOL exceeds available SOL, a temporary depeg might occur, impacting:
- The market value of PSOL
- Redeemability during volatile periods
Effective risk management and ongoing protocol improvements are essential to address these risks.
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How to Stake SOL and Get Phantom PSOL
Step-by-Step Staking Process
- Open Phantom Wallet
- Select the “Stake SOL” option
- Choose a validator or opt for auto-selection
- Confirm the transaction to receive PSOL
Users can track staking rewards and balances directly in Phantom, using PSOL in DeFi platforms or holding it for liquid staking access.
Conclusion: Phantom PSOL Ushers in a Staking Revolution
The launch of Phantom PSOL is more than a feature—it’s a pivotal milestone. By embedding liquid staking into one of Solana’s most trusted wallets, Phantom is redefining user interaction with the ecosystem. For SOL holders looking to earn yield without losing flexibility, Phantom PSOL delivers a seamless, secure, and DeFi-integrated solution.
