Introduction

super stake allows users to earn leveraged yield on their staked assets such as staked SOL with one click. It performs recursive borrow/lend of the staked asset to amplify yield on a user’s initial deposit. This process can be done manually by individuals but it can be a tedious process. Super stake offers a seamless experience for users. Users receive the upside without the hassle.

How does it work?

Using SOL as an example:
Users deposit SOL LSTs into the protocol, select the leverage that they’re comfortable with and the rest is taken care of.

• Deposit an LST into Drift’s borrow/lend program through Super Stake SOL
• The program uses the deposited LST to borrow SOL against the LST up to the user’s intended leverage ratio on Drift
• This effectively gives users a larger notional position size of the LST, which multiplies the base yield for users.

If staking yields exceed the borrow costs(it usually does), there is a premium from this super stake

Risks

Depeg Risk: LSTs may deviate from the price of the underlying asset. A 20% drop in mSOL or an 18.5% SOL premium can trigger liquidations with up to 3x leverage. Extreme de-pegs are rare but possible.

Liquidity Risk: Converting LSTs to SOL quickly without price impact can be difficult, especially during market stress or large liquidations.

Smart Contract and UI Risk: Vulnerabilities in smart contracts and UI errors can lead to unexpected behaviour and loss of funds.

Liquidation Risk: Margin falls below required levels can trigger partial or full liquidation of collateral. Ratios are displayed in the UI.

Oracle Risk: Incorrect oracle prices due to glitches or manipulation can lead to improper liquidations and losses.

Duration Mismatch: For example, SOL borrow interest is paid instantly, while staking rewards are paid every ~2.5 days, potentially causing interest payments without yield.

Ready to boost your yield?

To boost your yield on LSTs like mSOL, jitoSOL, and bSOL, you can super stake here: www.superstakesol.com