How LSD Works

1. User Staking

1. Connect Solana wallet

2. Enter SOL amount

3. Select a Strategy:

   • Safe Strategy – Capital preservation, low risk

   • Balanced Strategy – Controlled yield upside

   • Max Returns Strategy – Higher yield exposure with more risk

4. Confirm stake → lsdSOL is minted

lsdSOL represents a share of the pooled SOL.

2. Strategy Aggregation

Instead of per-user allocation, LSD uses quadratic aggregation to determine which strategy the entire pool follows:

• More participants = more influence

• A small number of large deposits cannot override many smaller ones

Example:

• 1 user with 50 SOL chooses Safe Strategy

• 10 users with 5 SOL choose Max Returns Strategy

  → Max Returns Strategy wins

3. AI Analysis & Allocation

AI (ASI) scores integrated protocols based on:

• TVL

• On-chain performance

• Yield history

• Incentives & token potential

• Risk metrics

It generates risk-reward scores and recommends allocation percentages within strategy limits:

• Safe: 100% to high-TVL, proven protocols

• Balanced: ≤30% to higher yield, rest to safer protocols

• Max Returns: ≤50% to higher yield/incentive sources

ASI recommendations are advisory; execution is handled by smart contracts.

4. Rebalancing

SOL allocations are rebalanced once per Solana epoch (~2–3 days).

This ensures disciplined adjustment without over-trading.

Unstaking Mechanics

• Standard Unstake:

  Burn lsdSOL → 1 epoch cooldown → claim SOL

• Instant Unstake:

  Immediate SOL return with 1% fee

No deposit fee.