## Introduction
Liquidity mining SOL on Lido Finance once offered crypto investors an attractive way to earn passive income through staking rewards and DeFi incentives. However, since Lido discontinued its Solana staking services in October 2023, users seeking the best APY for SOL must explore alternative platforms. This guide covers top-performing SOL staking alternatives, current APY comparisons, and step-by-step strategies to maximize returns through modern liquidity mining opportunities.
## What Was SOL Liquidity Mining on Lido Finance?
Lido Finance pioneered liquid staking solutions, allowing users to stake SOL tokens while maintaining liquidity. The process worked in three stages:
1. Users deposited SOL into Lido’s smart contracts
2. Lido pooled funds to validate the Solana network
3. Users received stSOL (liquid staking tokens) representing their stake
These stSOL tokens could then be used in DeFi protocols for liquidity mining—providing liquidity to trading pairs (e.g., stSOL/SOL) to earn:
– Staking rewards (typically 5-7% APY)
– Additional token incentives from partner DEXs
– Trading fee shares
## Why Lido Discontinued Solana Staking
In October 2023, Lido Finance announced the sunset of its Solana operations due to:
– Insufficient protocol revenue to sustain operations
– Strategic refocusing on Ethereum and Layer 2 ecosystems
– Declining stakeholder interest in Solana liquid staking
This discontinuation means users can no longer mint new stSOL or earn rewards through Lido’s Solana platform.
## Top 5 Alternatives for SOL Staking & Liquidity Mining (2024)
Maximize your SOL yields with these vetted platforms:
1. **Marinade Finance (mSOL)**
– APY: 7.2-8.5% (staking) + up to 12% with liquidity mining
– Features: Auto-compounding, zero lock-up periods, integrated with top Solana DEXs
2. **Jito (JITO SOL)**
– APY: 6.8-8% (staking) + MEV rewards boosting total yield to 10-15%
– Advantages: Maximizes extractable value (MEV) profits, low fees
3. **BlazeStake (bSOL)**
– APY: 7.5% base + 2-4% bonus via ecosystem partnerships
– Unique Perk: Supports SOL airdrop eligibility across 50+ projects
4. **Kraken Exchange**
– APY: 6.5-7.2% (custodial staking)
– Best For: Beginners seeking hassle-free staking with insurance
5. **Orca Whirlpools**
– APY: 15-25% via concentrated liquidity mining
– Strategy: Pair SOL with mSOL/JitoSOL in volatile pools for fee multipliers
## Step-by-Step: Liquidity Mining SOL for Best APY
Follow this blueprint to optimize returns:
1. **Stake SOL for Liquid Tokens**
– Use Marinade or Jito to convert SOL to mSOL/JitoSOL (takes 2-5 minutes)
2. **Provide Liquidity on DEXs**
– On Raydium/Orca: Create mSOL-SOL or JitoSOL-SOL LP positions
– Set concentrated liquidity ranges (±10% current price) for higher fees
3. **Stake LP Tokens**
– Deposit LP tokens in incentive programs (e.g., Marinade’s mSOL-SOL pool offers 9-18% APY)
4. **Automate Rewards**
– Use Kamino Finance to auto-compound yields across lending/staking
## APY Comparison: Staking vs. Liquidity Mining
| Strategy | Avg. APY | Risk Level | Liquidity |
|——————-|————|————|———–|
| Traditional Staking | 6-8% | Low | Locked |
| Liquid Staking | 7-9% | Medium | Flexible |
| Liquidity Mining | 12-25% | High | Flexible |
*Risks in liquidity mining include impermanent loss and smart contract vulnerabilities*
## Critical Risks to Mitigate
While chasing high APY, safeguard your assets by:
– **Audit Checks**: Only use protocols with recent audits (e.g., by Ottersec, Kudelski)
– **Impermanent Loss Protection**: Choose pools with IL mitigation (e.g., Orca’s stable fee tiers)
– **Diversification**: Spread SOL across 2-3 platforms to minimize protocol risk
– **Hardware Wallets**: Use Ledger/Phantom for transaction signing
## Frequently Asked Questions
### Can I still withdraw SOL from Lido Finance?
Yes. Existing stSOL holders can unstake via Lido’s sunset interface until February 2024. Afterward, a community-led unstaking portal will remain available.
### What’s the highest APY for SOL today?
Concentrated liquidity mining on Orca or Raydium currently offers 15-25% APY when pairing SOL with liquid staking tokens like mSOL, though this carries higher risk than standard staking.
### Is liquid staking safer than centralized exchanges?
Generally yes—liquid staking protocols like Marinade are non-custodial, meaning you retain asset control. Centralized exchanges (e.g., Kraken) offer convenience but carry counterparty risk.
### How often are rewards distributed?
Most Solana liquid staking rewards update in real-time and compound automatically. Liquidity mining payouts vary by DEX—Orca distributes fees hourly, while Raydium does daily distributions.
### Can I lose SOL through liquidity mining?
Yes, primarily through:
– **Impermanent Loss**: Occurs when pool token values diverge significantly
– **Smart Contract Exploits**: Hacks draining pooled assets
– **Token Depreciation**: If SOL price crashes during mining
Always use trusted platforms and monitor positions weekly.
## Key Takeaways
While Lido Finance’s SOL staking is discontinued, superior alternatives like Marinade and Jito offer competitive APY through liquid staking derivatives. For maximum returns (12-25% APY), combine these with concentrated liquidity mining on DEXs like Orca—but always prioritize risk management through diversification and audited protocols. Monitor Solana ecosystem updates, as emerging platforms frequently launch new incentive programs.
