stake.link is the leading delegated liquid staking protocol for the Chainlink ecosystem, founded in 2017 by LinkPool. It operates as a decentralized, trust-minimized protocol that facilitates delegated liquid staking into Chainlink's official staking pools, managed by a consortium of 15 top-tier Chainlink Node Operators. When users deposit LINK, the protocol strategically allocates tokens across both the Community Staking Pool and the higher-yielding Node Operator Staking Pool, delivering a blended reward rate that typically exceeds what community stakers earn through native Chainlink staking alone. Users receive stLINK, a liquid receipt token that represents their staked LINK plus accrued rewards, enabling full DeFi composability while their underlying LINK continues securing the Chainlink network. The protocol is governed by the stake.link DAO through the SDL governance token.

What is stLINK and how does it work?

stLINK is the liquid staking token issued by stake.link when users deposit LINK for staking. It represents your staked LINK position plus all accrued staking rewards. stLINK operates through an automatic rebasing mechanism: approximately every two days, staking rewards are calculated and the stLINK supply increases proportionally, automatically growing your wallet balance without any manual claiming or compounding. This means your stLINK balance continuously increases over time. Unlike natively staked LINK which is locked for a minimum 28-day unbonding period, stLINK maintains full liquidity and DeFi composability: it can be transferred, traded on decentralized exchanges, used as collateral on lending protocols like Aave and Morpho, deposited into yield optimizers like Beefy, or wrapped as wstLINK for protocols that require non-rebasing tokens. Withdrawals through stake.link typically process within 1-7 days, and sometimes instantly if liquidity exists in the Priority Pool.

What is the SDL token and why should I stake it?

SDL is the governance and fee-sharing token of the stake.link protocol, serving three critical functions. First, SDL is a fee token: staking SDL returns a percentage of all protocol fees generated across the platform. These fees scale directly with the amount of LINK staked and rewards flowing through the protocol, meaning SDL stakers benefit from protocol growth. Second, SDL is a governance token that grants voting rights in stake.link DAO decisions through the governance forum at talk.stake.link, where proposals (called SLURPs) shape the protocol's future direction, fee structures, and treasury management. Third, staking SDL provides priority access to LINK staking deposits through the Priority Pool, when Chainlink's native staking capacity is full (currently capped at 45 million LINK), users with higher reSDL holdings receive preferential access to new staking capacity as it becomes available.

How does stake.link compare to native Chainlink staking?

stake.link offers significant advantages over native Chainlink staking across four key dimensions. Yield: stake.link delivers a blended APY by staking across both the Community Pool and the higher-yielding Node Operator Pool: the Node Operator pool has a fixed reward allocation that can produce substantially higher effective rates when not fully utilized, and stake.link passes this blended rate to all depositors. Liquidity: native Chainlink staking locks your LINK for a minimum 28-day unbonding period with a 7-day claim window, while stake.link issues liquid stLINK tokens that can be used immediately in DeFi (Aave, Morpho, Beefy, CowSwap) or traded on DEXs. Withdrawals: stake.link processes withdrawals in 1-7 days, sometimes instantly via the Priority Pool, versus the mandatory 28-day lockup in native staking. Auto-compounding: stLINK rewards compound automatically through rebasing approximately every two days, while native staking rewards must be manually claimed and restaked, reducing effective yield for passive stakers.

What can I do on stakedotlink.money?

stakedotlink.money is the public stake.link surface for both regular LINK holders and builders. It gives beginners a simple start page for LINK-first routes, shows live protocol checks like TVL, queue state, APY, DeFi venue status, governance, and portfolio data, and also exposes the public stake.link MCP for agents and builders. All public data is grounded in on-chain contracts, verified protocol sources, and protocol-specific integrations rather than scraped marketing copy.

What is the Priority Pool?

The Priority Pool is a core feature of the stake.link protocol designed to provide fair and efficient access to Chainlink's native staking capacity, particularly when the official pools are full (currently capped at 45 million LINK). When maximum capacity is reached, any LINK deposited into stake.link is automatically queued in the Priority Pool. Unlike a simple first-come-first-served queue, access to available staking spots is meritocratically prioritized by your reSDL (staked SDL) holdings: users with greater commitment to the stake.link protocol receive preferential access. As soon as space opens in the Chainlink staking contracts (due to unbonding or capacity increases), the protocol automatically stakes queued LINK starting with highest-priority users. Once staked, stLINK is minted and made claimable. The Priority Pool effectively eliminates the need for users to constantly monitor staking capacity and manually time their deposits.

What is wstLINK and how is it different from stLINK?

wstLINK (wrapped stLINK) is an ERC-4626 compatible wrapper around stLINK designed for DeFi composability. The key difference is how rewards are represented: stLINK is a rebasing token: your wallet balance increases automatically every two days as rewards are distributed. wstLINK is non-rebasing: your token balance stays fixed but each wstLINK becomes worth more stLINK over time as rewards accrue. wstLINK exists because many DeFi protocols (lending markets, yield optimizers, cross-chain bridges) cannot handle rebasing tokens technically. By wrapping stLINK into wstLINK, users can supply it as collateral on Morpho, provide liquidity in the Curve wstLINK/LINK pool, deposit into Beefy yield strategies, or bridge it cross-chain, all while continuing to earn Chainlink staking rewards through the appreciating exchange rate. Converting between stLINK and wstLINK is always available at the current exchange rate with no fees.

What are the risks of liquid staking with stake.link?

stake.link, like all DeFi protocols, carries several risk categories that users should understand before depositing. Smart contract risk: the stake.link protocol contracts have been audited, but no audit eliminates all risk: a contract vulnerability could result in loss of funds. Slashing risk: Chainlink's staking system includes a slashing mechanism for malicious or poorly performing node operators; while stake.link's 15 NOPs are professionally operated, a slashing event would reduce the underlying LINK balance and stLINK value. Liquidity risk: stLINK's DeFi liquidity (on Curve, Uniswap, etc.) determines how close to 1:1 you can trade it for LINK: in periods of market stress, stLINK may trade at a discount before redemption. Withdrawal timing: redemptions through stake.link take 1-7 days and depend on available liquidity. Protocol risk: governance changes via SDL token holders could alter fee structures or protocol behavior. Chainlink staking cap risk: if the Chainlink staking cap is not increased, LINK may queue in the Priority Pool earning reduced or no rewards until capacity opens.

Which DeFi protocols support stLINK and wstLINK?

stLINK and wstLINK are integrated across multiple DeFi protocols, providing stakers with additional yield opportunities on top of base Chainlink staking rewards. Curve Finance hosts wstLINK/LINK liquidity pools on both Ethereum and Polygon, enabling deep liquidity for swaps with additional CRV and SDL incentives. Morpho offers vaults where LINK or wstLINK can be used in yield strategies. Folks Finance provides cross-chain DeFi access for wstLINK on Algorand-adjacent chains. Uniswap v3 hosts a LINK and SDL pool, and Beefy Finance offers auto-compounding strategies built on top of Curve positions. The public site and MCP expose live checks for these venues so users and agents can compare routes without guessing.

How many node operators validate stake.link staking?

stake.link is operated by a consortium of 15 professional Chainlink Node Operator Principals (NOPs), the same operators that run critical Chainlink oracle infrastructure securing billions of dollars in DeFi. These are not anonymous validators; they are established, professionally operated entities with reputations at stake in the Chainlink ecosystem. The 15 NOPs collectively manage LINK allocation across the Chainlink Community Pool and the higher-yielding Node Operator Pool, optimizing for the blended reward rate distributed to stLINK holders. This institutional-grade operator set is a key differentiator from other liquid staking protocols, and the public site and docs surface the current operator set and protocol status.

What is reSDL and how is it different from SDL?

reSDL is a locked version of SDL represented as a non-fungible token (NFT), created when users lock their SDL tokens for a chosen duration. The key difference from SDL is compounded benefits: while SDL is the liquid governance token, reSDL provides a reward boost multiplier ranging from 1x (no lock) up to 9x (maximum lock duration), earned protocol revenue share in the form of additional stLINK rewards, enhanced voting power in governance proportional to the lock amount and duration, and priority access to LINK staking capacity through the Priority Pool. The reSDL NFT represents the locked position and can be transferred but not split: the entire locked amount moves together. When the lock period expires, users can either extend the lock to maintain their boost or withdraw back to liquid SDL. reSDL is the mechanism that aligns long-term protocol participants with protocol health: the longer and more you commit, the greater your share of protocol revenue.

wstLINK/FrxUSD on Morpho: Borrow Stables Against Staked LINK

Complete guide to the new wstLINK/FrxUSD Morpho Blue market: borrow FrxUSD stablecoins using wstLINK as collateral, keep your staking yield, and access USD liquidity without selling LINK.

stake.link teamMarch 21, 202610 min readMorphoDeFiFrxUSDwstLINK

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Every LINK holder faces the same dilemma: you need USD liquidity, but selling means giving up your position: staking yield gone, price exposure gone, taxable event triggered. The wstLINK/FrxUSD market on Morpho Blue solves this. Deposit your wrapped staked LINK as collateral and borrow FrxUSD, a stablecoin from Frax Finance. Keep your LINK. Keep your staking rewards. Access stablecoins on your own terms.

What is the wstLINK/FrxUSD Market?

This is a lending market on Morpho Blue, the permissionless lending protocol. The setup is straightforward:

Collateral: wstLINK (wrapped staked LINK from stake.link)
Loan token: FrxUSD (Frax Finance stablecoin)
What you do: Deposit wstLINK, borrow FrxUSD
What you keep: Staking yield, LINK price exposure, your position

This is fundamentally different from the existing wstLINK/LINK market, which is designed for yield stacking and leveraged staking loops. The wstLINK/FrxUSD market is for capital efficiency: accessing USD liquidity without selling.

Why FrxUSD?

FrxUSD is Frax Finance's next-generation stablecoin, fully collateralized by real-world assets (RWA), not the old algorithmic model. Each FrxUSD is backed 1:1 by cash-equivalent reserves held with institutional custodians, with ~$114 million in circulating supply.

Contract: 0xCAcd6fd266aF91b8AeD52aCCc382b4e165586E29
Backed by: BlackRock BUIDL (tokenized T-bills), WisdomTree WTGXX (regulated money market fund), Superstate USTB, Bridge.xyz USDB
Multi-custodian: No single point of failure, diversified across multiple institutional custodians
Chainlink integration: Uses Chainlink Price Feeds for USD pricing, natural fit for the Morpho oracle framework
Deep Curve liquidity (frxUSD/crvUSD primary pair)
Audited by CertiK, ChainSecurity, and Code4rena. $10M bug bounty active.
Yield variant: sfrxUSD (ERC-4626) generates yield from T-bill rates and DeFi strategies

How It Works: Step by Step

Stake LINK

Deposit LINK on stake.link to receive stLINK, the liquid staking token that accrues Chainlink staking rewards.

Wrap to wstLINK

Convert stLINK to wstLINK, the non-rebasing wrapped version. This is necessary because lending protocols like Morpho require fixed-balance tokens. wstLINK's value increases relative to LINK as staking rewards accrue, rather than increasing in quantity.

Deposit as Collateral on Morpho

Navigate to the wstLINK/FrxUSD market on Morpho Blue and deposit your wstLINK as collateral. Your wstLINK continues earning staking rewards the entire time it's deposited.

Borrow FrxUSD

Borrow FrxUSD stablecoins against your collateral. Use them however you want: trade, provide liquidity elsewhere, convert to USDC, or handle real-world expenses. All without selling your LINK.

Yield Breakdown

For FrxUSD Suppliers

If you hold FrxUSD and want yield, supplying it to this market earns you:

Base interest from borrowers, driven by utilization via Morpho's AdaptiveCurve IRM
~5% APY in wstLINK incentives via Merkl campaigns managed by stake.link

For wstLINK Borrowers

Your effective borrowing cost is lower than the headline rate because:

Your wstLINK collateral earns ~4.5% staking yield while deposited
Borrow-side incentive campaigns further reduce effective cost
Net cost = Borrow rate − Staking yield − Borrow incentives

Key insight: Your wstLINK collateral continues earning staking rewards while deposited. The staking yield effectively subsidizes your borrowing cost.

Risk Assessment

Liquidation Risk

Unlike the wstLINK/LINK market (where the oracle uses the internal staking ratio and there's essentially zero depeg risk), the wstLINK/FrxUSD market requires a market price oracle for wstLINK/USD. If LINK's price drops significantly, your collateral value decreases relative to your debt and you may face liquidation. Always maintain a conservative LTV buffer.

Oracle Risk

The market relies on a price oracle to determine the value of wstLINK in USD terms. Oracle failures or manipulation could affect liquidation timing. Morpho Blue markets use immutable oracle configurations set at market creation.

FrxUSD Peg Risk

FrxUSD has maintained its peg since launch with no known depeg events, though its track record is short (launched late 2024). It's backed by institutional-grade RWAs (BlackRock BUIDL, WisdomTree WTGXX), but risks include custodial counterparty chains, NAV staleness during weekends (backing assets update daily/weekly, not real-time), and potential regulatory changes affecting tokenized fund structures.

Smart Contract Risk

Morpho Blue has been extensively audited and battle-tested with billions in TVL. The wstLINK token contract has been live and securing value since its deployment. Both have strong security track records, but smart contract risk is never zero in DeFi.

wstLINK/LINK vs wstLINK/FrxUSD

Two Morpho markets, two different strategies. Choose based on your goals:

Aspect	wstLINK/LINK	wstLINK/FrxUSD
Core purpose	Earn yield on LINK deposits	Borrow stablecoins against staked LINK
Target user	Passive yield seekers	Users needing USD liquidity
Supply APY	~7% combined	~5% in wstLINK incentives
Oracle type	Internal exchange rate (no depeg risk)	Market price feed (LINK/USD volatility)
Liquidation risk	Minimal	Medium (LINK price drops)
What you get	Yield from borrowers + incentives	Stablecoin liquidity without selling
Complexity	Simple: deposit and earn	Moderate: manage collateral ratio

How to Participate

Stake LINK at stake.link

Wrap to wstLINK via the stake.link interface

Open the market on Morpho Blue: search for wstLINK/FrxUSD

Supply FrxUSD (for yield) or deposit wstLINK and borrow (for stablecoin liquidity)

Claim incentives at Merkl

Track live market data (TVL, utilization, APY, whale activity, and more) at www.stakedotlink.money.

This is not financial advice. DeFi protocols carry smart contract risk. Always manage your positions conservatively and understand the liquidation mechanics before borrowing.

Frequently asked questions

What is the difference between the wstLINK/LINK and wstLINK/FrxUSD markets?

The wstLINK/LINK market is for yield stacking: deposit LINK, earn from borrowers, or loop for leveraged staking yield. The wstLINK/FrxUSD market is for capital efficiency: deposit wstLINK as collateral and borrow FrxUSD stablecoins without selling your LINK.

Does my wstLINK still earn staking rewards while deposited as collateral?

Yes. wstLINK's value increases relative to LINK as staking rewards accrue. This happens automatically via the exchange rate: your deposited wstLINK becomes worth more LINK over time, regardless of where it sits.

What happens if LINK's price drops?

Unlike the wstLINK/LINK market (which uses an internal exchange rate oracle with essentially zero depeg risk), the wstLINK/FrxUSD market uses a market price oracle. If LINK drops significantly, your collateral value decreases and you may face liquidation. Always maintain a conservative LTV buffer.

What is FrxUSD and is it safe?

FrxUSD is Frax Finance's RWA-backed stablecoin with ~$114M in circulating supply. It's fully collateralized by BlackRock BUIDL (tokenized T-bills), WisdomTree WTGXX, and other institutional-grade assets. No known depeg events, though it's relatively new (launched late 2024). Like all stablecoins, it carries risk.

Why would I supply FrxUSD to this market?

FrxUSD suppliers earn base interest from borrowers plus ~5% APY in wstLINK incentives via Merkl campaigns. This is competitive yield for a stablecoin deposit, paid in a productive asset (wstLINK).

How do I claim my wstLINK incentive rewards?

Incentive rewards are distributed via Merkl. Visit merkl.xyz, connect your wallet, and claim accumulated wstLINK rewards. Claims are gas-efficient and can be batched.

Can I use both markets at the same time?

Yes. You could supply LINK to the wstLINK/LINK vault for passive yield while also depositing wstLINK as collateral in the wstLINK/FrxUSD market for stablecoin borrowing. These are independent positions.

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