Liquid Staking Tokens (BBsol, mSOL, JitoSOL) earn staking yield of 7–8% APR, but
holders are exposed to full SOL price risk. DeltaZero hedges this risk, leaving only pure staking income.
SOL staking via LST earns ~7% APR. But on a 40% SOL correction (which has
happened repeatedly), a BBsol holder loses 40% of capital. Annual staking yield doesn't even compensate a
weekly drawdown.
Classic staking is essentially a directional position: you earn 7% APR but take
on 100% SOL price volatility.
Solution: hedged staking
DeltaZero buys an LST (e.g. BBsol from Bybit) and simultaneously opens a SOL perp
short for the corresponding amount:
BBsol grows at staking yield rate (~7% APR)
Perp short neutralizes SOL price movement
If funding rate for SOL short is positive — it's additional income
If funding rate is negative — it's subtracted from staking yield
Net Yield = Staking_APR − |Funding_Cost| − Execution_Fees
The key yield factor is the difference between staking APR and average funding cost
for SOL short. During bullish sentiment (when shorts receive funding) the strategy delivers maximum
returns.
Expected yield
8%
Conservative
BBsol + short on Bybit, calm market
12%
Balanced
mSOL + multiple exchanges, rising market
15%
Aggressive
JitoSOL (MEV income) + funding optimization
LST strategy advantages
Simple: just 2 positions (LST token + futures short)
No impermanent loss — unlike LP strategies
No rebalancing required — the position is static
Staking yield guaranteed by the protocol
Suitable for large capital (high SOL futures liquidity)