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How to Stake $SOL and Earn 50.43% APY ($USDC -> $UST -> $CASH)

$ETH gas prices are sky high. $40-100 to transfer an NFT. That’s why 2x as many developers have shifted to Solana over the past 3 months versus ethereum. Here’s what people are doing to stake $SOL and earn 50.43% APY.

In recent years, the blockchain appeared to be reneging on those principles, especially with the rising gas fees and the longer time it takes to confirm transactions. This and many other important factors triggered the need for launching Solana, a blockchain network that has so far, lived up to expectations.

In this article, you will learn more about the Solana blockchain, how to stake your $SOL coin to earn passive income, as well as the steps to swapping some other coins.

What Does Crypto Staking Mean?

What does it mean when a cryptocurrency investor says that he or she is staking cryptocurrency? The concept of cryptocurrency staking is part of the Decentralized Finance (DeFi) trend, a trend that seeks to displace traditional finance systems and replace the same with intermediary-free processes.

Cryptocurrency staking is the method of providing or locking your coins as a way of securing the blockchain network. This concept is a direct opposite of the traditional blockchain security model created by Bitcoin.

From the time of inception to today, the Bitcoin blockchain network is secured vi a consensus/collective mechanism called Proof of Work (PoW). This consensus mechanism/algorithm focuses on the use of higher computational powers to validate transactions, and secure the blockchain network.

The PoW consensus algorithm has been roundly criticized for the huge computational requirements, the rising costs for such computations and the negative tendencies for the environment. That informed the reason for the launch of the Proof of Stake (PoS) consensus algorithm, upon which cryptocurrency staking is hinged.

The PoS consensus mechanism reduces delays in confirming transactions, maintains a decent decentralization approach and enables energy-efficiency in blockchain transactions.

The PoS consensus mechanism relies on the staking of cryptocurrencies, because the staking of these coins helps the blockchain network of the underlying asset to work faster. Those who stake their cryptocurrencies also aid in the security of the blockchain network by doing so.

Besides, staking your cryptocurrency is a passive income opportunity, in the sense that you can earn free coins, just for delegating your cryptocurrencies for securing the blockchain network and confirming transactions.

How is Crypto Staking Different from Farming?

Staking of and farming of cryptocurrencies are two confusing concepts. Some cryptocurrency investors are still unsure of what they mean or the differences between the two. In this secton of this article, you will understand the differences between staking cryptocurrencies and farming cryptocurrencies.

First, we must mention that cryptocurrency staking and yield farming are excellent passive income opportunities, because the rewards are always handsome. You also want to have in mind that they use different approaches, but mostly lean towards the same goal of making transactions faster.

With cryptocurrency staking, we are looking at a Proof of Stake (PoS)-powered mechanism that involves locking up your crypto coins to act as nodes for confirming or validating transactions made over the blockchain network. The concept of cryptocurrency staking became very popular following the waning popularity and the high energy/electricity consumptions of mining cryptocurrencies via the Proof of Work (PoW) consensus mechanism popularized by the Bitcoin blockchain. You will share from the collective rewards to be distributed to those who pooled their coins to validate those transactions.

The concept of yield farming or cryptocurrency farming was borne out of the need to give cryptocurrency investors better returns. Before yield farming, cryptocurrency staking held sway and before that, mining cryptocurrencies had been the order of the day. So, it wouldn’t be out of place to posit that yield farming is the latest perspective to earning passive income from cryptocurrencies.

Yield farming is quite different from mining and staking of cryptocurrencies. Unlike the other two, yield farming doesn’t necessarily involve using your coins to secure the blockchain network. Instead, you are contributing your coins to a specific liquidity pool so you can partake in the distribution of the trading fees. Your role here is to be a Liquidity Provider (LP), offering thee liquidity needed for scaling transactions.

What is $SOL Solana?

Solana is the latest and most disruptive blockchain network. Remember that Ethereum blockchain wanted to scale faster than Bitcoin did, but ended up falling below par? Well, the Solana blockchain is here now and it is already giving Ethereum blockchain developers a run for their money.

The Solana blockchain doesn’t just stop at that. It has gone on to create a thriving ecosystem that accommodates projects from different spheres of the cryptocurrency industry.

Quoting the words of Solana’s, developers, they say that “Solana is the fastest blockchain in the world and the fastest growing ecosystem in crypto, with over 400 projects spanning DeFi, NFTs Web3 and more.”

Indeed, the Solana blockchain has done much more than that. It has “given the wings to many cryptocurrency projects to fly and realize their full potentials.” This blockchain network is being touted in some quarters to be “Ethereum’s killer” because of the unique features it offers.

In retrospect, the Solana blockchain has consistently smashed lots of goals in just a short time. For example, its native currency, the $SOL token has done well over 1,000% increase in value from its All-Time Low (ATL).

With lots of projects being launched on its blockchain and the ongoing scalability and higher fees on the Ethereum blockchain, it wouldn’t be out of place to say that the Solana blockchain is gearing up to displace Ethereum in terms of blockchain functionality.

The Solana blockchain uses a native token called Solana, with the ticker, $SOL. The token was created by Anatoly Yakovenko. It is more than just a cryptocurrency, because it can be used for several other purposes on the Solana blockchain. Some of the use cases of the $SOL token are powering Non-Fungible Tokens (NFTs), smart contracts/self-executing codes and Decentralized Finance (DeFi) applications.

Here is a detailed explanation of what you can do with $SOL:

For Cryptocurrency Transactions

You can use the $SOL token to settle payment for transactions made over the Solana blockchain platform. As the native token of the blockchain, it can be used to send and receive coins.

Transaction Validation

This is one of the most important use cases for the $SOL token. The Solana blockchain, of which it serves as the native token, uses the Proof of Stake (PoS) consensus mechanism.

By staking your $SOL tokens, you are aiding in the validation of those transactions, protection of the native blockchain network and most important – preventing transaction duplication. The Solana blockchain operates a censorship-resistant network that involves adding timestamps to the validated transactions. That way, it will be hard to make changes to the transactions, as well as preventing some validators from monopolizing the process.

Smart Contract Execution

The $SOL token is also used to optimize the smart contracts to automatically execute the terms of a contract only after the terms have been met and triggered.

DApps Development

As the native token of the Solana blockchain, the $SOL token is used for powering the development of Decentralized Applications (DApps). The token can also be used for supporting the development of other variety of apps, ranging from decentralized games and Decentralized Finance (DeFi).

Solana Blockchain for Permission-Free Payments

The Solana blockchain has taken the development of Decentralized Applications (DApps) to the next level. Through this blockchain, it would be possible to create platforms that operate on the Decentralized Finance (DeFi) basis.

These platforms are free from government control, because as the name suggests, they are decentralized or free from external control.

Why is $SOL Superior to $ETH Right Now?

Why do many cryptocurrency investors prefer to hold bigger bags of $SOL than they do for $ETH? What reasons best explain the rising popularity of the Solana blockchain, therefore, triggering sentiments that it would displace the Ethereum blockchain in no time?

First, you need to realize that both the Ethereum and Solana blockchain networks work towards the scalability of transactions. The networks also require the inputs of third parties called Validators to help in the transaction confirmations.

However, both blockchain networks have different perspectives to the validation of transactions. The Ethereum blockchain focuses on the use of computational power via the Proof of Work (PoW) consensus mechanism, while the Solana blockchain uses the Proof of Stake (PoS) consensus mechanism. The Solana blockchain, from indications, is a better option because it doesn’t use excessive computational powers. Rather, it uses the staked coins to validate the transactions.

The Solana blockchain also uses the Proof of History model to facilitate the verification of transactions on its blockchain network via smart contracts. This works by using the Verifiable Delay Function (VDF) to automate the arrangement of the transactions in their chronological order.

The impact of these differences is also evident in the prices of the native coins of the two blockchain networks. The price of $ETH was trading well above $4,000 at the time of writing, while that of $SOL was somewhere around $200.

Below is a table that shows the differences in between the Solana and Ethereum blockchain networks:

  Solana Ethereum
Transaction Per Seconds 50,000 to 65,000 15 to 45
Cost Per Transaction $0.00025 Max of $100
Mempool Problem Instantaneous Waiting Period
Software Rust Solidity
Bandwidth Less Bandwidth More Bandwidth
Consensus Algorithm Proof of Stake, Proof of History Proof of Work


What is the Best $SOL Wallet?

The goal is to find a cryptocurrency wallet where you can store your Solana coin ($SOL), as well as use it for other purposes, such as staking.

These are our picks and they are one of the most popular options out there for storing $SOL:

1. Phantom Wallet

The Phantom Wallet is the most preferred and for good reasons too. The wallet is preferred for many reasons, including the design as a non-custodial wallet plus the support for Web3. This makes it more flexible to serve as storage system for the Web3 projects that would be developed on the Solana blockchain platform.

Phantom Wallet also has many other striking features, such as support for cryptocurrency staking, support for SPL tokens and interoperability with some other Solana wallets.

You can use the Phantom Wallet to store, stake and transact with your $SOL, irrespective of the device you use. This is possible because of the cross-platform design, making the wallet usable as a web wallet and as a Chrome web browser extension.

Besides, you can use the built-in Decentralized Exchange (DEX) on the wallet to quickly swap or trade some crypto coins.

The Phantom Wallet has some flaws, though. Some of the downsides are that the users may not always have full control of the assets because the wallet operates a third-party interface.

2. Atomic Wallet

Atomic Wallet is another non-custodial wallet that supports hundreds of cryptocurrencies, including $SOL. With this wallet, it is easier to store, send and receive the $SOL coin.

You can also use it across devices, because it has both the mobile and desktop versions. You don’t necessarily need to pass through rigorous processes before using the Atomic Wallet, as it doesn’t require verifications.

3. Trust Wallet

If you are looking for a trusted wallet to store your $SOL, the Trust Wallet from Binance ticks the box. It is the official cryptocurrency wallet developed by the Binance cryptocurrency exchange. Over 200 cryptocurrencies, including $SOL can be stored on the wallet.

The wallet has many impressive features that include a decentralized web browser, credit card payments and purchases for cryptocurrencies and entrusting of the private keys to the users.

The major drawback to this wallet is that it may not be possible for you to stake your Solana coin ($SOL).

4. Coin98

Coin98 is a non-custodial decentralized cryptocurrency wallet that allows the users to store and send multiple cryptocurrencies, across different blockchain networks. Coin98 also supports multiple wallets, making it possible for the users to manage their crypto assets across several wallets.

You can also use your Coin98 wallet to store $SOL coin and SPL tokens. It also enables interactions across multiple cryptocurrency trading platforms, such as Centralized Exchanges (CEXs). This can be done via the API keys.

What is a Crypto Swap?

Do you know what it means when someone tells you that cryptocurrencies can be swapped? This may be the first time you are hearing about this. It may also be that you have heard about it, but not sure of what it means or how it works.

A cryptocurrency swap is the process of exchanging one cryptocurrency for the other by using a cryptocurrency wallet. Most of the times, these transactions don’t require an intermediary and may not even need to be processed on the blockchain.

Have in mind that for a cryptocurrency swap to take place, you must have full control of the wallet, including the private keys. Also, the cryptocurrencies should b swappable, meaning that one of the coins can be exchanged for the other.

These are some of the reasons why you may want to swap your cryptocurrencies:

  • Cryptocurrency swaps sometimes do not require fees, such as network fees.
  • Swapping cryptocurrencies is faster than waiting for your order to be processed in the Order Book.
  • You can use crypto swaps to immediately convert your coins into a stablecoin, such as USDT. This is common when a massive dip has been predicted in the cryptocurrency market.

How can I Earn 50.43% APY with $SOL Staking?

You can stake your Solana token ($SOL) to earn passive income. In this section, we discuss everything you need to know about $SOL staking.

Staking your $SOL tokens essentially means that you are locking up the tokens for a specific duration so those tokens would provide economic security to the Solana blockchain network. In this case, we are looking at the protection of the network, as well as for the validation of transactions.

You are also staking the tokens to earn rewards. The tokens you staked would be delegated to the validators who would use those tokens to process transactions faster, as well as see to the smooth running of the blockchain network.

Note that the higher your stakes or the higher the number of $SOL tokens you stake, the higher the rewards you will earn.

These are the steps to guide you on how to stake your $SOL tokens to earn up to 50.43% APY:

1. Move Your $SOL Tokens to the Supported Wallet

Your $SOL tokens must be moved to any of the supported cryptocurrency wallets before you can start staking. There are several wallets that you can choose from. They include:

Non-Custodial Wallets

Non-custodial wallets refer to the cryptocurrency wallets that you have a full control over. Examples of these wallets are:

  • SolFlare
  • Phantom Wallet
  • Exodus Wallet (you will be assigned to any of the validators partnering with the wallet).
  • You can also use Solana command line tools in conjunction with the Ledger Nano wallet, a paper wallet or a CLI-generated keypair file wallet.

Custodial Wallets

This is the opposite of the non-custodial wallet. Custodial wallets are the wallets that you can find on cryptocurrency exchanges. This type of wallets is not always secure, because you don’t have a control over the private keys.

Solana was clear about this by stating that you may not be able to enjoy direct staking for your $SOL tokens. Instead, you will rely on the supported cryptocurrency exchanges (Binance and FTX) to connect or assign you to any of their partner validators for staking your $SOL tokens.

2. Create Your Account

After moving your $SOL tokens, the next step would be to create your account. This account allows you to manage and exercise full control over the tokens you staked.

3. Choose a Validator

Pick a validator that you think can help you maximize profits from staking your $SOL tokens. One of the important things to look for is the recent performance statistics of the validator because that gives you an idea of how excellent or bad the validator can perform in the future.

4. Stake Your $SOL

Follow the instructions provided by the wallet to delegate your $SOL coins to the validator. You can then sit back and relax as your coins work for you and return up to 50.43% of the amount you delegated.

How to Swap $SOL for $USDC

You can swap your $SOL coins for USDC by following the following steps:

  • Connect your wallet
  • Choose the $SOL you want to swap. In this case, we chose $Wrapped SOL ($SOL).

  • Choose the coin you want to swap to. In this case, it is USDC Coin ($USDC). Pick it from the list and follow the next steps.

  • Enter the amount of $SOL you want to swap for $USDC.
  • Follow the on-screen instructions and wait for the swap to be completed.


How to Swap $USDC for $UST

You can swap your USDC Coin ($USDC) for $UST by doing these:

  • Connect your wallet
  • Pick USDC Coin ($USDC) from the list.

  • Pick wtUST as the coin you want to swap for.
  • Take note of the exchange rate before swapping.

  • The $UST should be credited to the corresponding wallet within a few minutes.


How to Swap $UST for $CASH

Here are the steps to swapping your $UST for $CASH:

  • Make sure you connect your wallet before any other thing.
  • Once the wallet is connected, scroll the list of coins to pick wtUST ($UST).

  • Navigate to the next column and select Cashio Dollar ($CASH) as the coin you want to swap your $UST for.

  • Follow the on-screen prompts to confirm the transaction.


How to Deposit $CASH into $SBR for Staking on Quarry

You can deposit your Cashio Dollar ($CASH) on the Saber protocol to earn the Saber Rewards. These are the steps to help you:

  • Connect your wallet on the Saber protocol
  • Choose any of the $CASH pools. The screenshot below show some of these pools:

  • Pick any of the pools and read the specifications, such as the current deposits made by others, the valuation of those stakes in USD and the APY or percentage you should expect to earn when you stake your $CASH.
  • Click on the Stake button to authorize the transaction.


How to Stake for Dual Yield on Quarry

Saber is a Decentralized Exchange (DEX) built on the Solana blockchain with a cross-chain Automated Market Maker (AMM). It recently partnered with Quarry and Marinade as part of the efforts to facilitating the transfer of crypto assets between the Solana blockchain network and other blockchain networks.

By this latest partnership Saber makes it possible for the users to now earn dual rewards from both the Quarry and Marinade protocols.

This is how to stake and earn from this Dual Yield model:

  • Mint the $mSOL token on Marinade.
  • Deposit the $mSOL token or the $SOL or both of them on Saber.
  • Doing that will create Liquidity Provider (LP) tokens.
  • After that, you can start earning from the trading fees accruable to those tokens.
  • Head over to the Saber Marinade Rewarder interface on Quarry.
  • Follow the on-screen instructions to deposit your LP tokens.
  • Once this is done, you will qualify to earn rewards in both $SBR and $MNDE.

How to Watch Your $SOL Stake Grow

You can closely monitor your stake on $SOL by following the progress of the pool. As liquidity keeps coming into the pool, the value of or returns on your $SOL tokens will increase, as well.

Here is an idea of the typical rewards:


The Solana blockchain is a breeding ground for futuristic and awesome cryptocurrency projects. The native token $SOL has made lots of profits within the year – but it is not stopping yet.

You can still get the token now that it is a bit affordable. To increase your profits, follow the steps outlined in this article to stake your $SOL coins and earn up to 50.43% APY.

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