At 21shares we are saying that JitoSOL is one token, offering two yields.
Issued by the Jito Community, JitoSOL got here onto the market in November 2022 and has established itself because the dominant liquid staking asset throughout the Solana (SOL) ecosystem.
It’s recognized for being the primary to offer a two-way yield construction. And the result’s full SOL worth publicity with a built-in yield part and no operational complexity.
However what does this truly imply? And the way does this truly work?
Our JitoSOL cheat sheet breaks it down into eight important factors.
1) JitoSOL in a nutshell
JitoSOL is a liquid token that represents staked SOL plus the rewards it has earned.
When it comes to course of: you deposit SOL into Jito’s staking setup; you obtain JitoSOL in return; and, over time, JitoSOL will increase in worth relative to SOL as rewards accrue.
When it comes to rewards: By swapping SOL for JitoSOL, the Jito Community retains full publicity to the value of SOL whereas routinely incomes two forms of rewards: customary staking curiosity plus a “bonus” share of the community’s transaction ideas.
When it comes to flexibility: In contrast to instantly staked SOL, JitoSOL stays transferable and can be utilized throughout Solana’s DeFi ecosystem, together with as collateral for lending or to offer liquidity.
A helpful manner to consider it: Staked SOL is just like a bond held to maturity; it earns yield, however isn’t simply exited. JitoSOL is the tradable declare on that place, preserving each revenue and worth publicity whereas remaining transferable.
2) Jito as an internet tipping concierge
Consider Solana like a freeway. When site visitors is heavy, drivers pays for the quick lane. On Solana, that fast-lane cost reveals up as ideas. That is the place Jito comes into play: It doesn’t create the quick lane, nor does it create the tipping system; nevertheless it supplies a clearer method to gather ideas from customers and distribute them to stakers.
Because of this on Solana, stakers can earn the same old staking rewards, plus a further yield that comes from ideas. The additional stream isn’t assured, somewhat it rises and falls with respect to the community’s congestion.
Consider Jito because the tipping concierge: it does such a very good job of distributing the information that it’s change into central to the Solana system. Thus, JitoSOL lets its traders – additionally known as stakers – profit from this further revenue whereas protecting their stake liquid.
3) How Jito helps stakers entry extra worth from transactions
MEV (Maximal Extractable Worth) is a technical time period for a easy idea: the revenue generated by deciding the order of transactions.
On a busy community, transaction sequencing issues – and that sequence has worth. In different phrases: Whoever controls the ordering can earn further revenue.
Crucially, MEV is inherent to Solana; it exists with or with out Jito. Slightly than inventing MEV, Jito democratizes it. By transferring transaction ordering into an open, aggressive public sale, Jito ensures this worth is shared transparently with stakers somewhat than being captured by personal actors. Thus, JitoSOL is the car that lets traders share in fast-lane charges, alongside common staking rewards.
4) Jito has change into core to Solana’s staking market
Jito’s providing isn’t a distinct segment product anymore. At this level, it features as core infrastructure inside Solana’s staking market.
As of 26 January:
- 71% of Solana validator shoppers use Jito’s software program.1
- ~14.07m SOL staked by way of Jito-enabled validators (~2.5% of all staked SOL)2.
- JitoSOL accounts for nearly 39% of Solana’s liquid staking tokens.3
This stage of adoption issues as a result of it improves: liquidity and market depth, operational credibility (extra validators selecting to run it), and the probability that the “further yield” mechanism stays structurally related.
Put merely, this scale is what makes JitoSOL work. Extra validators utilizing Jito means extra liquidity, stronger market depth, and a extra dependable movement of additional revenue to JitoSOL holders.
5) Yield: what to anticipate, and what to not assume
Traditionally, JitoSOL has delivered a modest premium over baseline Solana staking, averaging round 30-60 foundation factors over longer durations. Nonetheless, this premium isn’t mounted.
The incremental yield comes from execution-related revenue generated during times of elevated community exercise. It could actually subsequently contract when community utilization is decrease, as fewer customers pay for transaction precedence or execution-related revenue declines.
In apply, JitoSOL’s yield benefit is cyclical: it tends to be extra seen throughout busy durations on Solana and fewer pronounced throughout quieter market circumstances.
6) JitoSOL provides extra danger past pure SOL publicity
JitoSOL replaces simplicity with flexibility. In alternate for liquidity and the potential for larger returns, traders settle for extra dangers. These embody reliance on sensible contracts, separate liquidity and pricing dynamics from SOL, and a yield profile that rises and falls with community exercise greater than conventional staking. Whether or not this trade-off is sensible will depend on an investor’s consolation with variability and added complexity.
7) Liquidity: Why JitoSOL exists within the first place
Direct staking entails lock-ups and withdrawal delay durations, which restrict flexibility. JitoSOL is designed to protect liquidity whereas sustaining staking publicity.
JitoSOL may be redeemed into SOL, although redemption is probably not quick and may be topic to staking mechanics and prevailing liquidity circumstances, significantly for terribly giant redemptions.
For traders accessing JitoSOL by way of an exchange-traded product (ETP; or exchange-traded fund, ETF, relying on location), day-to-day liquidity is often offered through alternate buying and selling somewhat than onchain redemption.
8) Investor match: flexibility versus simplicity
JitoSOL is designed for traders who wish to earn staking returns whereas protecting their capital usable. The trade-off is simple: extra flexibility and a further yield stream, but in addition extra transferring elements, resembling sensible contracts, market-driven liquidity, and yields that change with community exercise. Traders who prioritize simplicity might desire holding SOL or staking instantly, whereas these snug with variability might discover JitoSOL extra engaging.
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Footnotes:
- Blockworks Analysis. (n.d.). Solana: Validator Purchasers — Analytics Dashboard. Blockworks. Retrieved February 2, 2026, from https://blockworks.com/analytics/solana/solana-supply-staking-and-validators/solana-validator-clients
- Dune. (n.d.). LST Staked Sol | Dune. Dune Analytics. Retrieved February 2, 2026, from https://dune.com/queries/5013486/8290960/
- Dune. (n.d.). Solana Staking, Validators, and Liquid Staking Tokens (LSTs) | Dune. Dune Analytics. Retrieved February 2, 2026, from https://dune.com/ilemi/solana-staking
