KYROS: REVAMPING LIQUID RESTAKING ON SOLANA
Liquid restaking is a more advanced kind of staking based on the concepts of the proof of stake (PoS) system. Traditionally, in a PoS system, validators protect the blockchain network by staking their cryptocurrency as collateral. In exchange, these validators receive incentives according to the amount they staked.
However, liquid restaking adds a new level of functionality by allowing staked assets to be reused, or “restaked,” to secure new blockchain protocols.
A BRIEF OVERVIEW OF KYROS
Liquid restaking protocols offer innovative ways to maximize returns on staked assets in the DeFi space. They enhance capital efficiency by allowing users to simultaneously stake their assets on multiple protocols.
The blockchain landscape is evolving rapidly, with innovations constantly redefining how users interact with decentralized networks. One of the latest advancements in the Solana ecosystem is Kyros, a cutting-edge liquid restaking protocol designed to enhance staking efficiency, boost rewards, and unlock new opportunities in DeFi.
Kyros is built on top of Jito (re)staking, and it serves as a bridge between users and Node Consensus Networks (NCNs), offering liquid restaking tokens that optimize economic security and yield potential.
INTRO TO KYROS
Kyros is the first and only Solana-native liquid restaking protocol that is focused entirely on Jito (re)staking liquid restaking, uniquely positioning itself as the best staking protocol within this ecosystem. Kyros improves (re)staking on Solana by addressing key inefficiencies in existing (re)staking protocols while unlocking new opportunities for users.
Kyros makes it easier for traders to maximize the utilization of their assets, by combining multiple features in one platform. It cuts down on slippage, price impact, and fees to ensure better (Re)staking transactions.
The protocol aims to democratize access to restaking by simplifying participation while maximizing security and rewards. Kyros functions as an entry layer for restaking, enabling users to stake their assets while ensuring that NCNs benefit from additional security through its liquid restaking tokens (VRTs).
KEY FEATURES OF KYROS
- Enhanced Liquidity: Unlike traditional staking, which locks up assets, Kyros allows users to stake SOL or JitoSOL and receive kySOL, a liquid restaking token that can be freely traded or used in DeFi.
- Multiple Revenue Streams: By leveraging Jito (Re)staking, Kyros combines Solana staking rewards, MEV rewards, and additional restaking incentives, leading to a higher APY than traditional staking.
- Deep DeFi Integration: kySOL can be used across DEXs, lending protocols, and yield trading platforms, enhancing capital efficiency and allowing users to earn extra rewards.
- Automated Compounding: Staking rewards are automatically reinvested into kySOL, reducing manual effort and maximizing yield potential.
- Community Incentives: As we all know that community is the backbone of a successful project, Kyros integrates two programs namely: The Warchest (points system) and The Village (quest-based engagement) to encourage long-term participation and provide additional rewards.
- Flexible Unstaking: Users can choose between a standard unstaking process (with a cooldown period) or instant unstaking via secondary markets, providing greater flexibility.
- Stronger Network Security: Kyros enhances the security of Node Consensus Networks (NCNs) by directing restaked assets to support critical infrastructure.
Okay, all these are really good tools, but why are they important, you ask?
In case you have no idea why the warchest point system is needed, you should go through this thread by Kyros before we continue: https://x.com/KyrosFi/status/1877704309733040257
UNIQUE ASPECTS OF KYROS
- First & Only Solana-Native Liquid Restaking Protocol
Kyros is the first and only liquid restaking solution built specifically for Jito (Re)staking on Solana. Unlike other protocols, it optimizes MEV rewards and restaking incentives to provide the highest yield possible. MEV is a term used to summarize the profit a validator can make by including, excluding, and reordering transactions in the blocks they create.
2. Liquid Restaking with kySOL & kyJTO
Kyros introduces kySOL and kyJTO, liquid restaking tokens that allow users to stake their assets while retaining liquidity for DeFi applications, lending, and trading.
3. Dual Reward Mechanism
Unlike traditional staking, Kyros earns restakers multiple income streams via:
- Solana staking rewards
- MEV (Maximal Extractable Value) rewards from Jito
- Restaking incentives for securing Node Consensus Networks (NCNs)
This triple-yield model makes Kyros highly profitable for restakers.
4. Seamless DeFi Integration
Kyros enhances DeFi participation by enabling kySOL & kyJTO to be used in:
- Liquidity pools (Raydium, Kamino)
- Lending platforms (Kamino Lend, Exponent)
- Yield-trading protocols (Sandglass, RateX)
5. Automated Compounding & Smart Yield Optimization.
Kyros auto-compounds staking rewards, maximizing APYs without requiring users to manually reinvest their earnings.
6. Gamified User Engagement (The Village & Warchest)
Kyros introduces a quest-based rewards system:
- Warchest: Users earn points for staking and using kySOL in DeFi.
- The Village: This gamifies engagement with attack, defense, and loyalty quests, unlocking higher ranks and potential future airdrops.
7. Strengthening Solana’s Infrastructure
Kyros helps secure NCNs (Node Consensus Networks), increasing the economic security of Solana while ensuring validators are well-funded.
JITO (RE)STAKING: POWERING KYROS’ LIQUID RESTAKING
Firstly, let’s begin with what Jito (re)staking is:
Jito (Re)staking is an advanced staking model within the Jito Network, designed to optimize validator performance and maximize rewards through MEV (Maximal Extractable Value) opportunities. Unlike traditional staking, Jito allows for efficient MEV extraction while ensuring fair distribution of rewards to validators and stakers.
WHAT MAKES JITO (RE)STAKING UNIQUE?
Now, let’s get down to these:
- MEV-Optimized Yield: Users not only earn standard staking rewards but also gain additional MEV rewards from Jito’s optimized validator network.
- Efficient Restaking Layer: Jito enhances the security and decentralization of Solana by optimizing stake distribution across top-performing validators.
- Permissionless Participation: Anyone can delegate SOL to Jito validators and benefit from its automated MEV strategies.
- Liquid Restaking Potential: Jito staking rewards can be restaked via Kyros, increasing capital efficiency and unlocking additional incentives.
WHY RESTAKING ON SOLANA MAKES SENSE
Solana’s high-speed and low-cost transactions make it an excellent blockchain for implementing restaking solutions. Through Kyros, restakers gain exposure to higher APYs, additional reward streams, and flexible liquidity, all while contributing to Solana’s consensus security. With Jito and Kyros, users can:
- Earn More with MEV: Traditional stakers miss out on MEV rewards, but Jito unlocks this additional yield.
- Maximize Liquidity: Liquid restaking with kySOL ensures that staked assets remain usable across DeFi.
- Enhance Network Security: Restaking strengthens Solana’s consensus by redistributing funds to high-performance validators.
- Boost DeFi Opportunities: kySOL can be deployed in lending markets, liquidity pools, and yield strategies for even higher APYs.
Jito (Re)staking combined with Kyros’ liquid restaking unlocks a new level of staking efficiency and DeFi synergy, making it a game-changer for Solana stakers.
HOW IMPORTANT IS KYROS TO THE SOLANA ECOSYSTEM?
Kyros plays a crucial role in the Solana ecosystem by enhancing staking efficiency, boosting DeFi liquidity, and securing network infrastructure. Here’s why Kyros is important:
- Strengthening Solana’s Staking Economy
Kyros introduces liquid restaking, allowing users to stake SOL while still retaining liquidity through kySOL. This increases Solana’s total staked assets without reducing network participation. - Boosting DeFi Liquidity & Utility
By integrating with major DeFi protocols like Kamino, Exponent, and Raydium, Kyros ensures that staked assets remain active in lending, yield farming, and liquidity pools. This increases capital efficiency within Solana’s ecosystem. - Enhancing Validator & NCN Security
Kyros helps secure Node Consensus Networks (NCNs) by directing restaked assets towards validators and critical infrastructure, improving the decentralization and security of Solana. - Expanding Yield Opportunities
Users benefit from multiple income streams, including Solana staking rewards, MEV rewards, DeFi yields, and additional restaking incentives. This makes Solana staking more attractive compared to traditional methods. - Driving User Engagement & Growth
Kyros’ Warchest rewards system and The Village quest program create long-term incentives, gamifying participation and strengthening community involvement. - Supporting Institutional & Retail Adoption
With SwissBorg and other integrations, Kyros makes restaking more accessible to both retail and institutional investors,and this increases the adoption within Solana’s ecosystem.
CURRENT KYROS PROTOCOL STATS (AS OF 03/02/25)
- Total Value Locked (TVL): [141.72K kySOL ≈ $32.85M]
- kySOL in Circulation: [141,655.919 kySOL]
- Liquidity & DeFi Integrations: Available on Kamino, Raydium, Exponent, and more.
Kyros continues to expand its integrations, making kySOL a critical financial instrument for users who are looking to optimize their Solana staking experience while actively participating in DeFi.
KYSOL IN DEFI: UNLOCKING YIELD & LIQUIDITY
One of the biggest advantages of kySOL is its deep integration into Solana’s DeFi ecosystem. Kyros allow users to optimize their staking rewards by leveraging kySOL across multiple protocols, while maintaining liquidity for additional yield strategies. Some of the key highlights are:
- Kamino: LP & Lending Opportunities
🔹 LP on Kamino: Kyros has partnered with Jito and Raydium to launch a kySOL/JitoSOL liquidity pool on Kamino. This allows users to earn swap fees, staking rewards, and protocol incentives while maintaining exposure to Solana staking yield.
🔹 Lend on Kamino: kySOL can be used as collateral on Kamino Lend, enabling leveraged staking strategies. Users can borrow against their kySOL holdings to increase their exposure and maximize yield. - Exponent: Fixed Yield & Leveraged Strategies
Exponent offers structured yield strategies that allow users to gain leveraged exposure to kySOL restaking rewards. This enables a more predictable yield profile for investors seeking optimized staking returns. - Sandglass & RateX: Yield Trading
Solana-based yield trading protocols such as Sandglass and RateX allow users to trade fixed yields on kySOL. This means users can lock in stable returns, hedge against interest rate fluctuations, or speculate on future staking yields. - SwissBorg: Direct Restaking for SOL Holders
Through SwissBorg, users can directly restake SOL via Kyros, securing Node Consensus Networks (NCNs) while earning staking and restaking rewards. This integration simplifies access to Kyros’ liquid restaking model.
WHY DEFI INTEGRATION MATTERS FOR KYSOL
Kyros is transforming kySOL into a powerful staking-backed asset by integrating with leading DeFi platforms, and this allows users to unlock higher returns, liquidity, and new financial opportunities.
KySol enjoys:
- More Ways to Earn: Users can combine staking rewards, MEV yield, and DeFi incentives for enhanced APYs.
- Capital Efficiency : Instead of locking SOL in staking, kySOL keeps assets liquid, enabling yield stacking strategies.
- Increased Utility : With more DeFi integrations, kySOL is becoming a key asset for Solana’s financial ecosystem.
KYROS POINT PROGRAM: THE WARCHEST & THE VILLAGE
Kyros isn’t just about staking, it’s about rewarding active participants who contribute to the ecosystem. The Kyros Point Program introduces two innovative reward mechanisms:
- The Warchest: Maximizing Staking Rewards
The Warchest is a points-based reward system where users earn Kyros Points for holding kySOL. These points can later be used for exclusive rewards, multipliers, and potential future airdrops.
How to Earn Kyros Points?
🔹 Stake SOL or JitoSOL into Kyros → By doing this, you earn Kyros points automatically.
🔹 Hold kySOL in your wallet → Passively accumulate points over time.
🔹 Use kySOL in DeFi → Earn multipliers for contributing to liquidity pools, lending platforms, and yield trading.
🔹 Participate in Governance & Ecosystem Growth → Certain on-chain actions may offer bonus points.
2. DeFi Multipliers: Boost Your Rewards
Users who deploy kySOL into liquidity pools, lending platforms, or trading strategies receive higher point multipliers. This incentivizes DeFi participation while maintaining staking exposure.
Example of Multipliers:
- Holding kySOL: 1x base points
- Providing LP on Kamino: 1.5x points
- Lending kySOL on Kamino Lend: 1.75x points
- Engaging in yield trading (Sandglass, RateX): 2x points
This system rewards active users while driving liquidity into the broader Solana DeFi ecosystem.
THE VILLAGE: GAMIFYING USER ENGAGEMENT
The Village is a quest-based engagement system, where users complete on-chain tasks to earn XP and rank up. The more active a user is, the higher their rank — and the greater their future benefits.
The Village has Three Quest Categories, which are:
Defense Quests → This rewards users for long-term staking & securing the Kyros ecosystem.
Attack Quests → Encourages users to explore DeFi, such as providing liquidity or trading kySOL yields.
Loyalty Quests → This ensures that users who hold kySOL for extended periods and actively engage in governance are being recognized.
Progression System
Users start as Villagers and level up through 10 ranks by completing quests. Higher ranks unlock additional multipliers, exclusive perks, and potential airdrop eligibility.
Let’s ask ourselves the question:
Why Does The Village Matters?
The village:
Encourages deeper community participation.
Increases exposure to potential Kyros airdrops.
Creates a long-term incentive model for staking and DeFi usage.
How to Maximize The Kyros Point Program?
- Stake & Hold kySOL: Passively earn Kyros Points over time.
- Use kySOL in DeFi: LPing, lending, and yield trading provide bonus multipliers.
- Complete Village Quests : Gain XP, rank up, and access exclusive rewards.
- Stay Active: High-ranking users may gain early access to future airdrops & rewards programs.
PERSONAL EXPERIENCE WITH KYROS
My first Impressions with Kyros started from the community aspect when I found out about them on superearn and did my first research on what they were building, it really melted my heart the way I was welcomed with open arms by the community.
Now to the technical part, When I first navigated Kyros, the clean and intuitive interface immediately stood out. Unlike many platforms that overwhelm users with cluttered dashboards, Kyros’s layout was streamlined. The (RE)staking interface, (UN)staking interface, DEFI and The Village interfaces were clearly presented, making it easy to understand even for newcomers. The responsiveness of the platform added to the experience, with transactions executing smoothly without lag.
Hands-on Testing, my first transaction involved testing the (RE)staking feature with a mid sized transaction.
The platform effortlessly showed me my transaction route, entry, and estimated fee.
Challenges and Surprises
One minor challenge was familiarizing myself with the full extent of the DEFI and The Village interface. While the quests were comprehensive, understanding how to interpret certain things like the requirements took some time. However, the learning curve was manageable, and the depth of information provided a valuable edge in subsequent activities.
CONCLUSION
Kyros has already positioned itself as a pioneering liquid restaking protocol on Solana, but there are several ways it can further enhance its ecosystem, expand adoption, and optimize rewards. Here are some key areas for improvement:
Expanding DeFi Integrations & Use Cases
Kyros should increase liquidity and boost its DeFi integrations by:
- Expanding kySOL utility across more lending, DEX, and yield-trading platforms.
- Partnering with new protocols to unlock novel restaking strategies.
Introducing structured products that allow users to auto-compound, hedge, or optimize their restaking rewards.
Potential Improvements:
Listing kySOL on more DEXs (Orca, Phoenix, Drift, etc.)
Enabling leverage trading with kySOL as collateral.
Supporting yield-bearing strategies via vaults (e.g., Kamino automated LP strategies).
REFERENCES
Kyros Whitepaper: https://docs.kyros.fi/kysol/how-to/unstake
