For over three years, we’ve been building and innovating within the Ethereum ecosystem. Today, we are announcing an expansion to the Solana network with pxSOL, a high-yield liquid staking solution for SOL.
Why Solana?
Solana's growth over the past two years has been impressive. But more importantly, its DeFi ecosystem has matured to a point where we can more easily launch, and grow, a two-token LST using the same design that made pxETH successful. With a variety of DEXes, lending and borrowing use cases, etc. there will be plenty of opportunities to bootstrap both pxSOL and its staked counterpart (apxSOL).
pxSOL Overview
Like with pxETH, we’re aiming for pxSOL to be Solana's highest yielding liquid staking solution. pxSOL will be the first two-token LST on Solana, which will make it the first to optimize yield for both DeFi users and stakers.
When users first stake their SOL, they receive pxSOL, a token that maintains a 1:1 peg with SOL. Think of it as a redeemable wrapper for SOL except the underlying SOL is staked. However, pxSOL does not earn the underlying staking yield. In fact, users of pxSOL are choosing to forgo their staking yield in favor of DeFi yields—a preference for many since the upper bound on DeFi yields can be much higher.
So where does the staking yield go? That’s where apxSOL comes in. Users receive apxSOL when they stake their pxSOL into our auto-compounding rewards vault. Once staked, apxSOL holders begin earning the staking yield from the SOL staked with Solana validators.
Here’s where it gets interesting: not all pxSOL holders choose to stake, but apxSOL holders earn yield from all of the staked SOL, which boosts their returns. In other words, apxSOL holders earn yield from more SOL than they’ve personally staked. This results in a higher staking yield for users.
Live on Testnet
The good news is that we’re not announcing this with months of development ahead. Most of the building is completed and pxSOL is now live on testnet.
While there may be kinks in the current deployment, we’ll use this testnet period to fix small issues, make sure things are running smoothly, etc. Once we reach a final version of pxSOL, we’ll move to the mainnet deployment.
During this phase, we’ll also be establishing launch partners across the Solana ecosystem to make sure there are a variety of DeFi use cases available at launch.
See you on mainnet 🫡