There’s more than one way to stake SOL. While the outcome is broadly the same – you lock up your SOL in return for helping decentralize the network for which you earn more SOL in return – the detail differs between protocols. Staking sounds simple and, if you’re participating in liquid staking rather than running your own validator, it is. But there are many SOL staking solutions out there and while their core service is broadly identical, they are not the same.
Some liquid staking protocols offer more bang for your back, or rather more SOL for your stake, both in terms of the APY they provide and the validator set they use. Take Xandeum for example. While a relative newcomer to Solana’s thriving staking scene, it hasn’t arrived quietly, electing instead to launch with a headline-grabbing 15% APY and a setup that distributes staked SOL across multiple validators.
As anyone with even a modicum of knowledge about Solana’s liquid staking landscape knows, that’s not how it’s done. Or rather it’s not how it was done until Xandeum rocked up in late 2024 with a mandate to make LSTs great and lay the groundwork for its own Solana storage layer, which we’ll get to shortly. It’s a lot to unpack, so let’s begin with a summary of what Xandeum does, why it matters, and why you should care as a Solana staker.
Shaking Up SOL Staking
Launched in late October, Xandeum’s xandSOL is the first multi-validator liquid staking token (LST) to be deployed on Solana, an accomplishment that’s worthy of attention in its own right. Unlike traditional staking, where SOL is locked with a single validator, xandSOL spreads the stake across multiple validators to provide greater decentralization and redundancy. If one validator should be knocked offline, it won’t have major consequences for stakers.
For the uninitiated, liquid staking on Solana allows you to stake your SOL tokens while still retaining the ability to use them in its broader DeFi ecosystem. Ordinarily, you send your SOL to a liquid staking protocol which stakes the SOL on your behalf, delegating the token to one or more reputable validators. You receive a liquid staking token (LST) in exchange for the SOL you stake, representing your stake plus any accrued rewards.
And because this derivative token acts like a stand-in for your staked SOL, it can be traded, LP’d, or used in other DeFi applications. In theory, the LST should grow in value, since it reflects both your initial stake and the staking rewards. This is how it works for Ethereum LSTs such as stETH and it’s the same story on Solana with xandSOL.
While the basic user experience associated with staking through Xandeum resembles that of other protocols, there are some key differences underneath the surface. Notably, Xandeum offers a quadruple rewards system which accounts for why APY is significantly higher than other providers thanks to a blend of block rewards, staking rewards, XAND rewards, and MEV rewards. Ordinarily Solana validators grab MEV and block rewards, but Xandeum shares them with stakers to increase total APY. It’s the first liquid staking protocol to do so programmatically.
Mo’ Validators, Mo’ Decentralization
In distributing staked SOL across a diverse pool of validators, xandSOL breaks from the single-validator norm, bolstering Solana’s decentralization while strengthening the validator set by allowing more players to participate. Its programmatic distribution of block rewards, meanwhile, ensures that smaller validators aren’t left in the dust, but can share in SOL block rewards.
Centralization remains a constant threat with proof-of-stake networks, with a tendency to creep in over time as staking protocols return to the same validators again and again, causing them to capture all the stake at the expense of newer arrivals who lack the rep and might to compete. It’s happened with Ethereum, necessitating the introduction of Distributed Validator Technology (DVT) to combat it, and the same can happen on Solana.
Xandeum tackles this head-on. By spreading stake across multiple validators, xandSOL reduces reliance on dominant pools, curbing the influence of any single entity. This diversification draws lessons from FTX’s 2022 collapse, in which centralized failures rocked Solana’s price and trust due to how deeply embedded the exchange was in Solana’s onchain ecosystem. Xandeum’s model offers a buffer, ensuring that no single validator’s downtime or misstep can derail stakers’ returns. It’s a pragmatic fix for a network aiming to stay decentralized amid growing adoption and external pressures.
What Xandeum Does for Stakers
Xandeum isn’t just playing defense: it’s fueling Solana’s growth with staker-friendly perks. Because at the end of the day, SOL holders aren’t locking up their precious crypto for altruistic reasons like strengthening network security – they’re doing it for themselves. And with an industry-leading APY of up to 15% through Xandeum, there’s a whole lot in it for themselves.
The attainable yield through xandSOL is around twice that of other Solana staking protocols, aided by the fact that MEV rewards are programmatically split between validators and stakers, a move CEO Bernie Blume calls “an equitable system where everyone prospers.” This egalitarian commitment extends to Xandeum’s upcoming scalable storage layer, due to launch soon, which will weave storage fees into the reward mix, future-proofing xandSOL’s status as a highly lucrative Solana LST.
Tightening Solana’s Network Security
The ripple effects of Xandeum’s approach are profound. More validators joining the fray, drawn by shared rewards, means a broader, more resilient network. This isn’t just about numbers; it’s about efficiency. Xandeum’s multi-validator pool optimizes Solana’s proof-of-stake mechanics, reducing bottlenecks and supporting greater network reliability.
It’s also worth noting that with its storage layer imminent, Xandeum will support data-heavy dapps – think decentralized databases or AI-powered applications – that will take more strain off the Solana mainnet. In the process, the anticipated usage Xandeum will see from these next-generation dapps – i.e those that are hungry for data by the terabyte – will result in fees that trickle down to XAND holders and further boost liquid staking rewards.
With TVL rising, rewards holding steady, and validator count increasing, Xandeum is proving that staking can be both profitable and principled. As its storage layer rolls out in 2025, integrating exabyte-scale data into Solana’s RPC nodes, Xandeum has the potential to become a cornerstone of much of the economic activity taking place on the network. The EigenLayer to Solana’s Ethereum, effectively, but with virtually unlimited storage thrown into the bargain. But even if this vision takes time to be realized, in 2025 Xandeum’s already doing its bit for Solana as thousands of happy xandSOL stakers will attest.
