This collaboration boosts the Solana ecosystem by providing a new, beneficial way to stake SOL.
Now, let’s explore more about hSOL and its features.
What is hSOL?
hSOL is a liquid staking token representing SOL staked to the Helius validator, which is managed by Helius Labs. The process begins when a user deposits SOL in exchange for hSOL. This SOL is then staked, and the accruing staking rewards are reflected in the value of the hSOL token.
Initially pegged at a 1:1 ratio with SOL, the value of this token increases over time as staking rewards accumulate. By holding hSOL, users automatically earn staking rewards, enhancing their investment without any active management.
1/ We are excited to announce that we have partnered with @heliuslabs's very own LST!
Introducing hSOL! pic.twitter.com/GpeOW5IHex
— sanctum ☁️ (@sanctumso) April 26, 2024
Advantages of Using hSOL
One of the standout features of this new token is its zero-fee structure. Staking with hSOL means zero fees and high yields in Solana. However, the benefits extend beyond individual gains. Choosing hSOL allows Helius Labs to use stakes to help developers enhance Solana’s efficiency and speed. This enhances the network’s performance and sustainability, aligning personal and community benefits.
7/ What's the fees?
hSOL has
> 0% management fee
> 0% validator commission
> 0% stake account deposit fee
> 0% withdraw fee
> Only a small 0.1% SOL deposit fee to prevent an arbitrage attack!— sanctum ☁️ (@sanctumso) April 26, 2024
Potential users may wonder about the safety of investing in hSOL. It’s reassuring to know that this token is powered by the SPL stake pool program, one of the safest of its kind globally. This program has undergone nine rigorous audits and is trusted by the largest stake pools on Solana.
Over the past two years, it has securely managed more than $1 billion of staked SOL without a single incident. This track record offers strong reassurance to both new and experienced investors about the security of their investments.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
