The rise of decentralized finance (DeFi) on Solana has been nothing short of explosive, and one token that’s playing a pivotal role in this growth is JitoSOL. While Jito’s JTO airdrop in 2023 captured widespread attention, it's JitoSOL—the network’s liquid staking token (LST)—that continues to gain momentum, now trading at a premium to native SOL.
But what exactly is JitoSOL, and how can you use it to maximize returns across Solana DeFi? This guide breaks down everything you need to know about leveraging JitoSOL for lending, liquidity provision, and collateral use—all while navigating the risks responsibly.
What Is JitoSOL?
JitoSOL is a liquid staking token (LST) issued by the Jito Network, allowing users to stake SOL without locking up their assets. Unlike traditional staking, where your SOL is immobilized and earns passive rewards, liquid staking lets you maintain liquidity.
When you stake SOL through Jito, you receive JitoSOL in return—representing your staked SOL plus accrued staking rewards. This token remains tradeable and usable across DeFi protocols, enabling you to earn yield both from staking and from active DeFi strategies.
Thanks to its dual-income potential, JitoSOL has become a cornerstone of Solana’s DeFi ecosystem. Its adoption has contributed significantly to the recovery and expansion of Solana’s total value locked (TVL), which surpassed $9.66 billion in mid-2024.
How to Use JitoSOL in Solana DeFi
JitoSOL isn’t just for passive holding—it’s a powerful asset that unlocks multiple yield-generating opportunities across decentralized finance.
1. Lending and Borrowing
Lending platforms allow users to deposit assets like JitoSOL to earn interest (supply APY) or use them as collateral to borrow other tokens.
With over $1.75 billion locked in Solana’s lending sector, JitoSOL ranks among the most supplied and borrowed assets due to its high liquidity and stability.
Key Platforms:
- Kamino: A leading DeFi protocol offering lending, borrowing, and automated vaults. Kamino supports up to 2 million JitoSOL in deposits with a 45% loan-to-value (LTV) ratio, meaning you can borrow assets worth up to 45% of your deposited JitoSOL. The platform also runs an active points program distributing KMNO tokens, creating additional incentives for participation.
- marginfi: Known for its robust risk management and high LTV ratios, marginfi allows up to $500,000 worth of JitoSOL borrowing with a generous 77% LTV ratio. Users earn governance points while supplying JitoSOL, positioning them well for potential future token distributions.
- Solend: One of the earliest lending protocols on Solana, Solend enables users to deposit JitoSOL and earn competitive supply APRs while borrowing stablecoins or other crypto assets.
👉 Discover how DeFi lending can boost your crypto returns
2. Providing Liquidity
Liquidity is essential for decentralized exchanges (DEXs) to function smoothly. By depositing token pairs into liquidity pools, users enable seamless trading and earn fees in return.
JitoSOL enhances liquidity incentives across major Solana DEXs like Orca, Raydium, and Meteora—especially when used in concentrated liquidity models.
Top Liquidity Options:
- Kamino Vaults: These automated vaults simplify liquidity provision by handling everything from position creation to compounding and rebalancing. The JitoSOL-SOL vault, with over $34 million in TVL, offers APYs exceeding 10%, boosted by external incentives like JTO rewards. Depositors also receive kTokens, yield-bearing LP tokens that can be used as collateral elsewhere in Kamino.
- Orca & Raydium: As automated market makers (AMMs), these platforms let you trade or provide liquidity for JitoSOL pairs. While they operate similarly, Raydium integrates deeper with Serum for advanced order types, whereas Orca focuses on user-friendly design.
- Meteora: Developed by the team behind Jupiter, Meteora introduces dynamic liquidity vaults with adaptive strategies tailored to market conditions—ideal for optimizing returns on JitoSOL pairs.
- Phoenix: Designed for professional traders, Phoenix offers ultra-fast execution and low fees, making it ideal for algorithmic trading using JitoSOL.
3. Using JitoSOL as Collateral
Perpetual futures trading requires collateral, and JitoSOL has emerged as a top choice due to its yield-bearing nature and strong market demand.
Leading Perp DEXs:
- Drift: As the largest perpetual futures DEX on Solana (TVL ~$358M), Drift holds around **$161 million in JitoSOL deposits**—more than double the amount of USDC or native SOL. This dominance underscores trust in JitoSOL’s stability. Beyond futures trading, Drift offers spot markets, lending, insurance staking, and market-making vaults—all accessible using JitoSOL.
- Zeta: Another major perp DEX where JitoSOL is accepted as collateral. Zeta runs a points system tied to trading volume (Z-Score), potentially qualifying active users for future token airdrops.
👉 Learn how top traders use yield-generating collateral
Understanding the Risks of DeFi with JitoSOL
While the opportunities are compelling, DeFi carries inherent risks. Being aware of them helps protect your capital:
Smart Contract Risk
All DeFi protocols rely on smart contracts—self-executing code that can contain bugs or vulnerabilities. Exploits due to coding errors have led to significant fund losses in the past. Always assess whether a protocol has undergone third-party audits.
Economic Attacks
Malicious actors may manipulate prices or exploit arbitrage opportunities. For example, flash loan attacks can temporarily distort pool prices, leading to losses for liquidity providers.
Impermanent Loss
When providing liquidity with JitoSOL-SOL or other pairs, price divergence between tokens can result in impermanent loss—a temporary reduction in portfolio value compared to simply holding the assets. This risk increases with higher volatility.
LST Depegging Risk
Although rare, liquid staking tokens can lose their peg if liquidity dries up or arbitrage mechanisms fail. If the market price of JitoSOL falls below its underlying SOL value, confidence may erode rapidly.
Frequently Asked Questions (FAQ)
Q: What is the difference between SOL and JitoSOL?
A: SOL is the native cryptocurrency of the Solana blockchain. JitoSOL is a liquid staking derivative—each token represents staked SOL plus accumulated rewards. Unlike locked staked SOL, JitoSOL remains liquid and usable across DeFi.
Q: Does JitoSOL earn staking rewards automatically?
A: Yes. The value of JitoSOL appreciates over time relative to SOL as staking rewards are continuously accrued and reflected in the exchange rate between the two tokens.
Q: Can I unstake my SOL from JitoSOL anytime?
A: There is no traditional “unstaking” period. You can swap JitoSOL back to SOL instantly via DEXs like Orca or Raydium. However, slippage may apply depending on pool depth.
Q: Is JitoSOL safer than native staking?
A: It depends on your priorities. Native staking is simpler and involves fewer smart contract risks. JitoSOL introduces additional counterparty and protocol risks but offers far greater utility in DeFi.
Q: Which platform offers the best yield on JitoSOL?
A: Kamino’s automated liquidity vaults currently offer some of the highest risk-adjusted yields (>10% APY), especially when factoring in incentive programs like JTO rewards.
Q: Are there any upcoming tokens linked to JitoSOL usage?
A: While Jito hasn’t announced a new token drop, platforms like Kamino, Drift, and Zeta reward active users with points that could translate into future airdrops.
How to Trade JitoSOL
To start using JitoSOL, you’ll need a compatible wallet like Phantom or Backpack. From there:
- Connect your wallet to a Solana DEX (e.g., Orca or Raydium).
- Swap SOL for JitoSOL directly.
- Begin deploying it across lending markets, liquidity pools, or as collateral.
Many wallets now support direct swaps with minimal friction—just ensure you're using official sites to avoid phishing scams.
👉 Start exploring high-yield DeFi strategies today
Disclaimer: This article is for informational and educational purposes only. It does not constitute financial advice, endorsement, or recommendation to invest in any asset or protocol. Always conduct your own research and consider consulting a financial advisor before making investment decisions.