Overview: Introducing the Phantom PSOL Launch
On May 15, 2025, the Phantom PSOL launch reshaped the staking landscape within the Solana ecosystem. Through Phantom Wallet’s Phantom Staked SOL (PSOL), users can now earn staking rewards while keeping their assets liquid. This article examines the functionality of Phantom, its advantages, and its broader significance for liquid staking and DeFi adoption on Solana.
Defining Phantom PSOL: A Deep Dive into Liquid Staking
What Is Liquid Staking?
In traditional staking on proof-of-stake blockchains like Solana, users lock their assets to earn rewards. Liquid staking, however, introduces a derivative token like Phantom to represent the staked assets, allowing users to use their capital in DeFi protocols while still accruing staking profits.
Mechanics of Phantom PSOL
Phantom is a derivative token issued by Phantom Wallet when users stake SOL via its platform. Phantom delegates the SOL to validator nodes, and users receive PSOL tokens that can:
- Be traded or used as collateral
- Engage in lending or borrowing platforms
- Earn additional yield through farming
This dual-purpose mechanism enhances capital efficiency and drives wider staking participation.
Why Phantom PSOL Is a Game-Changer for Users
Greater Freedom for Stakers
With Phantom PSOL, users no longer need to choose between staking rewards and liquidity. It provides:
- Instant access to liquidity
- Ongoing participation in yield-generating protocols
- The flexibility to exit staking by swapping PSOL back to SOL
Enhancing DeFi Efficiency
Phantom PSOL allows users to stake once and amplify their earning potential in DeFi, such as:
- Adding liquidity on platforms like Raydium or Orca
- Using PSOL as collateral on Solend
- Joining PSOL/USDC yield farms
This integration of staking and decentralized finance increases ecosystem activity and promotes sustained staking behavior.
Impact of Phantom PSOL on Solana’s Ecosystem
Phantom’s Strategic Expansion
The introduction of Phantom PSOL highlights Phantom’s goal to evolve from a wallet into a comprehensive Solana ecosystem hub. This move:
- Reduces dependency on third-party staking solutions
- Builds trust through seamless staking integration
- Positions Phantom as a vital DeFi infrastructure provider on Solana
Bolstering Solana’s Network
Liquid staking via Phantom strengthens Solana’s decentralization and security by encouraging more SOL staking. Unlike idle assets, staked SOL through PSOL contributes to:
- Increased validator participation
- Enhanced network durability
- Wider user engagement
How Phantom PSOL Compares to Other Staking Tokens
PSOL vs. Marinade and Lido
While Marinade (mSOL) and Lido (stSOL) have led Solana’s liquid staking market, Phantom PSOL brings distinct advantages:
- Direct wallet integration without external platforms
- Real-time reward visibility within Phantom
- Simplified UI/UX for DeFi newcomers
This user-friendly approach could help Phantom capture a larger share of the market, particularly among new stakers.
Comparison Table
| Criteria | PSOL | mSOL | stSOL |
|---|---|---|---|
| Protocol | Likely tied to a newer platform (e.g., Parrot, but unclear). Limited data. | Marinade Finance: Solana’s first liquid staking protocol, launched August 2021. | Lido Finance: Expanded to Solana in September 2021, discontinued new staking in October 2023. |
| Token Purpose | Represents staked SOL, assumed usable in DeFi (like other LSTs). | Represents staked SOL, usable in DeFi for lending, farming, or liquidity pools. | Represents staked SOL, usable in DeFi, but new staking halted; holders can unstake. |
| APY (Estimated) | No specific APY data; likely 5-8% for Solana LSTs. | ~7.43% (June 2024); can increase with DeFi strategies. | ~5.65% (April 2022); less relevant now. |
| Liquidity | Unclear; likely lower due to limited documentation. | Very high: ~$645M TVL, 5.18M SOL staked, supported on DEXs like Jupiter. | Medium: Declining since Lido’s exit; still tradable but less liquid. |
| DeFi Integration | Unknown; assumed to support standard Solana DeFi (e.g., Orca, Saber). | Extensive: Used in Kamino, Drift, Solend, Orca for lending, liquidity. | Supported by Serum, Raydium, Saber, but declining relevance. |
| Fees | No data; typically includes staking/unstaking fees for LSTs. | 6% commission on rewards; unstaking fees 0.1%-9% based on liquidity. | 10% fee on rewards, split among operators, treasury, developers. |
| Risks | Unknown platform risks; likely includes smart contract, de-pegging risks. | Low: Spread across 225 validators, audited; smart contract risks remain. | Higher: Discontinued support, smart contract risks, potential de-pegging. |
| Validator Distribution | No data; likely fewer validators if smaller protocol. | 225+ validators, enhancing decentralization, reducing slashing risk. | Large validators with separate machines; less decentralized approach. |
| Unstaking Process | Unclear; involves swapping or delayed unstaking (2-3 days). | Swap on DEXs or unstake with 2-3 day delay; fees for instant unstaking. | Swap on DEXs or unstake with 2-3 day delay; front-end access ended 2024. |
| Governance | No data on governance or token. | MNDE token for DAO governance; holders vote on 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. |
Potential Risks with Phantom PSOL
Smart Contract Vulnerabilities
Like other liquid staking products, Phantom PSOL depends on smart contracts that could have vulnerabilities. While Phantom has completed audits:
- Users should remain vigilant and conduct research
- Funds may be at risk from bugs or validator issues
Depegging Possibility
If the demand to redeem PSOL surpasses available SOL, a temporary depeg could occur, affecting:
- PSOL’s market value
- Redeemability during market turbulence
Robust risk management and protocol enhancements are key to mitigating these issues.
Discover: Solana vs. Ethereum: A Blockchain Showdown
Staking SOL to Receive Phantom PSOL: A Guide
Steps to Stake in Phantom Wallet
- Open Phantom Wallet
- Navigate to the “Stake SOL” option
- Select a validator or use auto-selection
- Confirm the transaction to receive PSOL
Users can track their staking rewards and balances directly in Phantom, using PSOL in DeFi platforms or keeping it for liquid staking access.
Conclusion: Phantom PSOL Sets a New Standard for Staking
The Phantom PSOL launch represents a strategic leap forward, not just a new feature. By embedding liquid staking into one of Solana’s most trusted wallets, Phantom is transforming how users interact with the ecosystem. For SOL holders seeking yield without losing asset control, Phantom PSOL offers a secure, user-friendly, and DeFi-integrated solution.
