Maximize your SOL: How bbSOL unlocks liquidity and staking rewards
Bybit’s bbSOL, a liquid staking token (LST) for Solana (SOL), is one of the most effective instruments in the industry for optimizing yields from Solana staking. The core advantage of bbSOL is that it enables you to earn staking rewards while maintaining the full liquidity of your original funds.
bbSOL isn’t just a standard LST. It provides access to a broad range of yield opportunities through both the centralized exchange (CEX) and decentralized exchange (DEX) routes. Spot trading, margin trading, staking for APR, restaking, lending and borrowing are some of the income-generating options bbSOL offers. With bbSOL, you can access an unprecedented number of yield streams while your underlying SOL continues to accrue staking rewards directly on the Solana network.
Key Takeaways:
bbSOL is an LST asset that lets you leverage the same funds to earn crypto rewards from multiple sources: Solana staking, and yields from various CEX and DEX opportunities.
You can use bbSOL to earn additional yield from Bybit products — such as spot margin trading, Easy Earn, Bybit Launchpool, Crypto Loans and Institutional Loans — or from decentralized Solana protocols, such as Raydium, Solayer, Kamino and others.
What is bbSOL?
Bybit Staked SOL (bbSOL) is a liquid staking token that lets you benefit from earning Solana staking rewards while retaining full liquidity of your funds. When you stake SOL through Bybit to take advantage of Solana staking rewards, you’re issued the bbSOL token as confirmation of your staking position. Your bbSOL is issued to you immediately upon staking SOL with Bybit. This token accumulates all your staking rewards and grows in value over time.
bbSOL's automatic reward accrual is among its best features. You don’t have to track your rewards and manually manage them, because bbSOL does it for you. Whenever you’re ready to stop staking, you can redeem your investment.
You can obtain bbSOL in several ways on Bybit via the following methods:
The On-Chain Earn product
Spot market swaps with Tether (USDT), USDC (USDC) and Solana’s SOL
Bybit Convert, a service that lets you quickly swap crypto with zero fees via your Unified Trading Account (UTA)
How bbSOL works
To start taking advantage of bbSOL, you’ll need to stake SOL through Bybit to receive your yield-bearing LST. The bbSOL issued to you will be used to accrue rewards from Solana’s on-chain staking, with the rewards added each Solana epoch (approximately two to three days).
There are no fees to deposit your SOL and start earning. Upon withdrawing your staking position, you’ll pay just a fee of 0.1%. The only other fee that’s applied is the Solana epoch fee, which is charged on your rewards only, not the principal amount. This fee is 2.5% for the first month, rising to 5% starting from the second month of staking.
Since your original SOL earns you staking rewards, you’re free to use your bbSOL for additional yields via a variety of CEX- and DEX-based opportunities (covered below in a later section).
When redeeming your position, you have two options: instant and delayed redemption.
Instant redemption is processed immediately, making your original funds available straightaway. It’s initiated via the Sanctum (CLOUD) decentralized liquidity provider’s smart contract on the underlying Solana blockchain, and may involve some slippage.
The delayed redemption option has a four-day waiting period. However, its advantage is that you receive your principal and rewards without any slippage costs involved.
Another plus of staking SOL via Bybit is that your funds are processed by an established CEX. Nevertheless, there are always risks involved in the underlying blockchain. One potential risk is the possibility of rate fluctuations for bbSOL that might eat into your total earnings. The second risk is slashing, whereby a Solana validator holding your staked funds might be penalized for inefficiency or dishonest behavior by the blockchain’s consensus algorithm.
Key benefits of bbSOL
The key benefits of bbSOL include the following:
Earning staking rewards while retaining the full liquidity of your funds means that you can simultaneously earn rewards from two sources: Solana staking, and whatever additional source of yield for which you invest your bbSOL
There are an unprecedented number of additional yield sources on both Bybit’s CEX, and Solana-based decentralized protocols
Low fees and a straightforward, transparent and automated reward mechanism
Strong security features underpinned by Bybit and Solana’s decentralized infrastructure
How to use bbSOL on Bybit
You can use bbSOL to earn yield through a variety of products and services on Bybit, such as:
Spot margin trading, which lets you take advantage of borrowing with up to 10x leverage by providing collateral
Easy Earn, whereby you use your idle crypto funds to earn interest through various fixed- and flexible-term investment options
Bybit Launchpool, which from time to time may offer bbSOL investment opportunities to buy new, promising crypto tokens
Crypto Loans, which lets you use bbSOL as collateral
Institutional Loans, a Bybit service for business users, lets you access larger loan limits than those available via the standard crypto loans
How to use bbSOL in Solana’s DeFi ecosystem
bbSOL may also be used for yield directly on the Solana blockchain. Some of the network’s popular decentralized finance (DeFi) protocols accept the bbSOL LST. Among the key DeFi yield sources for bbSOL are the following:
Providing liquidity on the Orca (ORCA) and Raydium (RAY) DEXs
Crypto lending and borrowing on platforms like Kamino (KMNO), marginfi (MRGN) and Save (SAVE)
Leveraged yield trading and liquidity mining on the RateX protocol
Closing thoughts
Bybit’s bbSOL offers you the benefit of earning Solana staking rewards while allowing you to use the same funds for additional yield. It’s one of the most flexible LSTs in the industry, offering a diverse range of yield sources on the Bybit CEX and on various Solana DeFi protocols.
Besides maximizing your earnings, bbSOL also provides the opportunity to help support the decentralization and security of the Solana chain. As such, for those believing in the ethos of blockchain decentralization, bbSOL offers a great way to combine profitable crypto investing and meaningful contribution to the network’s operations.
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