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Unstaking sSOL Explained

Unstaking sSOL Explained

Solayer Core

Jul 7, 2024

Unstaking activated at 3AM UTC, 8PM PST on July 8th. 

TLDR:

  1. Native SOL unstaking 

  2. LST Withdraw 

  3. Unstaking Credit Deduction 

  4. Credit boosts 

  5. Examples of unstaking accounting 


Solayer native SOL unstaking functions 

Tokens can only be withdrawn from a stake account when they are not delegated. When you first un-delegate a stake account, it enters a "cooldown" phase. Tokens cannot be withdrawn until this process is complete and they are "inactive," meaning they no longer earn staking rewards. Once tokens in a stake account are inactive, they can be immediately withdrawn to your main wallet address. Solayer has a 2 day “cooldown” phase for native unstaking per Solana epochs. 


LST Withdraw 

Withdrawing LSTs is simple. Select the amount you wish to withdraw, and the tokens will be sent back to your main wallet address.

Upon withdrawing, you will be able to see the full amount of rewards, as well as these deducted from your account. It is important to note that we are not deducing anything from your deposit, but are penalising a percentage of the accrued credits so far.


Unstaking Credit Deduction 

Our accounting system works as the following: 

The base calculation for rewards = deposit * time-weight * boost 

  • Currently, Native SOL has a significant priority over other LSTs. However, we may begin campaigns on boosting other LST deposits. 

  • If you withdraw, prematurely, you will incur a 50% reduction on the rewards accrued by the amount you are withdrawing. 

  • Check the “Credit Deduction” page for more information. 


For example : if you staked 100 SOL and earned 1M credits, withdrawing 50 SOL will slash half of the rewards earned by those 50 SOL, resulting in a reduction of 250k credits.  


Credit Boosts 

To reiterate, on Solayer there will be different types of credit boosts. Native SOL, basic LST, Epoch 0, and Epoch 1 are among the top ones for Episode 1. In the coming week, we will reveal more on what is being counted for in Episode 2! Native SOL continues to be a priority. 


Full Examples of Unstaking 

  1. Withdrawing all tokens from a stake account


  • User has a wallet with a balance of 900 SOL, and a single stake account with 100 SOL delegated to a validator.

  • The wallet interface is used by the user to Deactivate their stake delegation. The stake account shows in the wallet interface and on the Explorer that it is “Deactivating”. Once it is “Inactive” , the staked tokens stop earning rewards and can be withdrawn. See Timing Considerations for more details.

  • The wallet interface can be used to withdraw all tokens back into their main wallet account. The wallet balance now shows 1,000 SOL and the stake account is closed.


If you want to reduce the amount of delegated stake assigned to a given validator without deactivating your entire balance (and therefore missing any potential rewards during the delegation downtime), you can “Split” an existing stake account into two accounts, and undelegate one, while leaving the other account delegated and continuously eligible for rewards.


  1. Reducing the delegation staked to a given validator


  • User has a wallet with a balance of 800 SOL, and a single stake account with 200 SOL delegated to a validator.

  • User wants to reduce the amount of stake delegated to the validator by 100 SOL.

  • Use the wallet interface to “Split” the stake account, and specify 100 SOL as the amount to split.

  • There are now 2 stake accounts, each with 100 SOL which are each delegated to the same validator.

  • User can then use the wallet interface to Deactivate one of their stake delegations. The stake account shows in the wallet interface and on the Explorer that it is “Deactivating”. Once it is “Inactive” , the staked tokens stop earning rewards and can be withdrawn. See Timing Considerations for more details.

  • Once the account is Inactive, the user can then choose to delegate the account to a different validator, or to withdraw the tokens back into the main wallet, or to further “Split” the inactive stake account and delegate to multiple different validators.


Tokens in a stake account with a lockup may not be withdrawn until the lockup expires, regardless of the delegation state of that account. Once the lockup expires, undelegated tokens may be withdrawn immediately. There is no action required by the account holder to specifically unlock the account.


Follow both written and video tutorial for unstaking 

Unstaking SOL: https://youtu.be/FHpqwNd6CBo?feature=shared

Docs: docs.solayer.org

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solayer

Solayer leverages the economic principles of staking to extend the security of Solana's base layer.

©2024 Solayer · All Rights Reserved

solayer

Solayer leverages the economic principles of staking to extend the security of Solana's base layer.

©2024 Solayer · All Rights Reserved