stake.link flash course

stake.link is a premier liquid staking protocol founded by a consortium of 15 top-tier Chainlink node operators. It allows you to earn staking rewards on your LINK tokens while maintaining liquidity through stLINK, a liquid staking token (LST).

Traditional staking problem: When you stake LINK directly with Chainlink, your tokens are locked and illiquid: you can't use them in DeFi or sell them without unstaking first.

stake.link solution: You deposit LINK and receive stLINK in return. Your stLINK represents your staked LINK + accumulated rewards, and you can use it anywhere in DeFi while still earning staking rewards.

Unique advantage: stake.link is the only protocol offering public access to Chainlink's higher-yielding Node Operator Pool, providing better returns than the Community Pool alone.

stLINK is a rebasing token that automatically increases in value as staking rewards accumulate. Here's how it works:

1. 1

   Deposit LINK

   Send your LINK to the stake.link contract

2. 2

   Receive stLINK

   Get stLINK tokens at the current exchange rate (starts at 1:1)

3. 3

   Earn rewards

   As Chainlink staking rewards accrue, your stLINK balance automatically increases (rebasing)

4. 4

   Redeem

   Swap stLINK back to LINK at any time. Your stLINK balance already includes the rewards you earned.

Example: You deposit 100 LINK and receive 100 stLINK. Over time, as staking rewards accumulate, your stLINK balance grows through rebasing (e.g., to 105 stLINK). You can redeem those 105 stLINK for 105 LINK.

SDL is the governance and utility token of the stake.link protocol. It serves three purposes:

• Governance: Vote on protocol proposals and upgrades
• Boost: Lock SDL to get reSDL and boost your SDL staking rewards up to 9x (does NOT apply to LINK staking)
• Priority Pool access: reSDL holders get priority access to unstake LINK instantly via the Priority Pool

reSDL (reward-escrowed SDL) is an NFT you receive when you lock SDL. Each reSDL lock has:

• Amount: How much SDL is locked
• Duration: 1 month to 48 months
• Boost: 1x (1mo) up to 9x (48mo): longer locks = higher boost

Important: Boost mechanics apply to SDL staking ONLY, not LINK staking. Boost does NOT increase the stLINK or stPOL APY: it increases your proportional share of the stLINK + stPOL rewards distributed to all SDL stakers:

A higher boost means more reSDL per SDL locked, which gives you a larger share of the reward pool. For example, locking 1,000 SDL at 9x gives 9,000 reSDL vs 1,000 reSDL at 1x, 9× the reward share.

Your boost multiplier (for SDL staking) is calculated from your reSDL locks based on lock duration:

Multiple locks: If you have multiple reSDL locks, your effective boost is the weighted average across all locks based on the amount of SDL in each.

The Priority Pool is a queuing system for LINK deposits. When the Chainlink staking vaults are full, your LINK goes into the Priority Pool and waits for space to open up. Once space is available, your LINK is automatically staked and you receive stLINK.

How queuing works:

• Deposit LINK: Your LINK enters the queue and waits for staking capacity
• Priority order: Deposits are processed in order, but reSDL holders get priority (higher boost = higher priority in the queue)
• Automatic staking: When vault space opens, queued LINK is automatically staked and you receive stLINK
• Liquidity buffer: A small portion of queued LINK acts as a liquidity buffer, allowing others to withdraw instantly when needed

You stay in control: You can withdraw your LINK from the Priority Pool at any time before it gets staked. Once staked, you hold stLINK which can be swapped back to LINK on Curve or CowSwap.

1. 1Acquire LINKBuy LINK on exchanges like Coinbase, Binance, or swap on Uniswap
2. 2Connect walletUse MetaMask, WalletConnect, or another Web3 wallet on Ethereum mainnet
3. 3Get stLINK: choose one option
   • Option A: Swap on CowSwapInstant swap LINK → stLINKSwap↗
   • Option B: Swap on CurveSwap LINK → stLINK via Curve poolSwap↗
   • Option C: Deposit to Priority PoolEarn yield while providing liquidityDeposit↗
4. 4Get SDL (optional)Buy SDL on Uniswap to access boost and Priority Pool benefits
5. 5Lock SDL for reSDL (optional)Lock SDL to get boost and increase your proportional share of rewards
6. 6Explore DeFi (advanced)Use stLINK in Curve, Morpho, or Uniswap for additional yield

The dead capital problem: When you stake directly on-chain, your tokens are locked and illiquid. You can't use them in DeFi, can't sell them without unstaking, and can't access instant liquidity. Your capital is "dead": earning staking rewards but unable to capture other opportunities.

Liquid staking solves this:

• Instant liquidity: Exit via Curve pool any time (small slippage, no waiting)
• DeFi composability: Use stTOKEN tokens as collateral, in LPs, cross-chain while earning rewards
• Capital efficiency: Earn staking rewards + DeFi yields simultaneously
• Automatic rewards: No manual claiming, rebasing auto-compounds
• Professional validators: 15 Chainlink NOPs with $5B+ stake, 100% uptime

stPOL works exactly like stLINK but for Polygon's POL token. Stake POL, get stPOL, earn Polygon validator rewards while staying liquid.

Key differences from stLINK:

• Unbonding: 21 days (vs 28 days for LINK)
• Rebase: ~Every 2 days (vs daily for LINK)
• Network: Polygon validators securing the Polygon PoS chain
• wstPOL: Non-rebasing wrapper for DeFi (same concept as wstLINK)

Use cases: Same as stLINK: Curve pools, Morpho lending, cross-chain DeFi. Check the DeFi section on the dashboard for live APYs.

stESP is liquid staking for Espresso's ESP token. Espresso is a coordination layer for sovereign rollups, providing decentralized sequencing and fast finality via HotShot BFT consensus.

What makes stESP unique:

• Validators first: Built by LinkPool, Espresso's #4 largest validator
• Fast finality: HotShot consensus delivers 6-8 second finality
• MEV redistribution: Validators capture MEV from rollup sequencing, distribute to stakers
• 14-day unbonding: Shorter than LINK (28d) or POL (21d)
• Curve pool + SDL: Instant exits + dual yield at launch

Why stake ESP? You're securing infrastructure for sovereign rollups worldwide. Staking rewards come from real usage (transaction fees + MEV), not just token emissions.

All three liquid staking tokens (stLINK, stPOL, stESP) have wrapped versions (wstLINK, wstPOL, wstESP). Here's the difference:

Rule of thumb: Use stTOKEN for simple holding. Use wstTOKEN for DeFi, lending, and cross-chain. Convert between them instantly at stake.link (gas only).

Your stTOKEN tokens aren't just for holding. Use them across DeFi to multiply yield opportunities:

Curve Finance

What

Provide liquidity to stTOKEN/X pools (e.g., stLINK/LINK) and earn trading fees + SDL incentives.

Why

Dual yield (staking rewards + LP rewards). Low impermanent loss (stableswap curve for 1:1 assets).

Risk

Smart contract risk, temporary impermanent loss during price divergence.

Morpho lending

What

Use wstTOKEN as collateral to borrow stablecoins or other assets. Leverage your position (advanced).

Why

Capital efficiency. Borrow against wstTOKEN while still earning staking rewards.

Risk

Liquidation if collateral value drops. Monitor health factor closely.

Uniswap V3

What

Provide concentrated liquidity for SDL/LINK pairs and earn trading fees.

Why

Higher capital efficiency with concentrated liquidity ranges. Earn fees on top of staking rewards.

Risk

Impermanent loss if price moves outside your range. Requires active management.

Folks Finance

What

Cross-chain lending markets for wstLINK. Deposit on Avalanche, Polygon, Base, or Ethereum.

Why

Access multi-chain liquidity and lending yields while maintaining staking rewards.

Risk

Cross-chain bridge risk, smart contract risk on multiple chains.

Beefy Finance

What

Automated yield optimization vaults for stTOKEN LP positions. Set and forget yield farming.

Why

Auto-compound rewards, maximize LP yields with zero manual intervention.

Risk

Smart contract risk, strategy risk, potential withdrawal delays during rebalancing.

Cross-chain DeFi

What

Bridge wstTOKEN to other chains (Avalanche, Arbitrum, Base, Polygon, etc.) and use in native DeFi protocols.

Why

Access yields and protocols unavailable on Ethereum mainnet across multiple chains.

Risk

Bridge risk (hacks, exploits). Use reputable bridges only.

When you're ready to exit, you have two main options:

Note: Native Chainlink unstaking has a 28-day unbonding period, but Priority Pool typically processes withdrawals in 1-7 days (and often instantly if liquidity is available).