Introduction

Solana is crypto’s largest yield generator, with users paying over $1B per year for transaction inclusion. Yet only half of this real economic value (REV) flows to stakers, and to make matters worse, it is heavily diluted by inflation. 

RevTec directs REV yield and issuance yield to two separate liquid staking tokens, revSOL and issSOL. By holding revSOL, stakers achieve access to Solana’s economic engine, financially aligning themselves with Solana’s growth

Stakers’ Problems 

Missing 50% of REV

In 2024, Solana’s users generated $1.4B of REV for stakers and validators. Only half this REV flowed to stakers, however, since priority fees flow exclusively to validators. Although a recent upgrade to the Jito Tip Router makes it possible for validators to transparently pass priority fees to stakers, it has not seen adoption from validators yet. 

Source: blockworks.com/analytics/solana/solana-financials

Isolating REV from issuance

In addition to missing out on half of REV, stakers’ APY is heavily diluted by the inflationary issuance of new SOL tokens. There is no way for stakers to focus their capital on earning REV exclusively, and isolate it from the much larger flow of inflation. 

Source: dune.com/21labs/staking-dashboard

The Solution: revSOL & issSOL as Staking Yield Primitives

RevTec is a liquid staking pool built on Solana, with two liquid staking tokens, revSOL and issSOL. Priority fees & Jito tips (aka "Real Economic Value") accrue to revSOL. Issuance yield (aka inflation) accrues to issSOL. As these yields accrue at varying rates, the LSTs grow in value at different rates.

As more on-chain trading and activity happens on Solana, the value of revSOL increases at an accelerated rate. issSOL, meanwhile, increases at a much more steady rate, in line with Solana’s inflation schedule. By holding only revSOL or issSOL, stakers can choose to earn volatile REV yield, the more stable issuance yield, or a custom mix of both.

Use Cases

Holding revSOL or issSOL or using them in yield trading protocols unlocks a range of strategies:

🤑 Earn REV with revSOL

Holding revSOL is ideal for stakers who believe Solana’s on-chain activity and REV yield will grow over time. Holding revSOL provides direct exposure to this upside, with REV rewards accruing faster than with default staking when REV outperforms its historical average.

Example: Bob is a SOL holder, and predicts increasing usage of the chain and REV generation. Instead of staking his SOL the default way, he holds revSOL only. If he is wrong, and REV production decreases, he will still earn a yield, just less than he would have with default staking.

😌 Prioritize Stable Staking Yield with issSOL

Holding issSOL provides exposure to issuance-based yield, which is highly predictable, only gradually decreasing according to Solana’s inflation schedule, assuming no fluctuations in the supply of SOL staked.

Example: Chris manages a treasury of SOL, but would like to earn a yield. He is unsure about how the market and Solana’s on-chain activity will change going forward. He chooses to hold issSOL to earn a relatively stable APY, allowing him to have a high degree of confidence about his earnings in the coming weeks and months.  

📈 Farm REV Yield with Exponent Yield Token (YT)

Hold YT-revSOL from the yield trading protocol Exponent, increasing your exposure to yield generated by revSOL, and creating a profit or loss. 

Example: Trader Tom wants to bet on Solana’s increasing on-chain activity. He buys as much YT-revSOL as he can on Exponent Finance. If he is right, increased REV rewards will eventually generate more yield than he paid for the YTs, giving him a positive PnL. If he is wrong, he will have a negative PnL, as he initially paid more for the YTs than he earned back in yield.

🔒 Lock In REV Yield with Exponent Principle Token (PT)

Lock in a fixed yield using PT-revSOL Exponent, taking away risks of yield fluctuation until the date of maturity. 

Example: Alice recognizes that current REV production on Solana is very high, and would like to lock in the current yield rate. She uses the yield trading protocol Exponent Finance to buy PT-revSOL, which trades at a discount to revSOL, since it does not earn yield. This represents a “fixed yield” until the date of maturity, at which point PT-revSOL expires 1:1 to revSOL again.

🔄 Leverage Yield With Kamino Multiply

Use Kamino multiply to increase the APY of your revSOL. This is possible because the interest rate to borrow SOL is below the underlying yield that can be earned with revSOL. Kamino Multiply automates the strategy of supplying PT-revSOL as collateral, borrowing SOL, acquiring more PT-revSOL, and so on. 

Example: John realizes that PT-revSOL is currently yielding a fixed yield of 8%, but the interest rate to borrow SOL is 4%. Using Kamino Multiply, he loops his PT-revSOL and creates a yield of 12%. 

What Else is Uniquely Enabled by Staking Yield Primitives?

Fixed income products

Solana’s inflation schedule guarantees a "worst-case" long-term staking yield of 1.5% APY from issuance. This minimum yield could be separated as a distinct tranche, offering an indefinite fixed yield.

On-chain activity futures

By integrating the revSOL yield rate into a perp dex or Pendle Boros, traders will have a way to place bullish or bearish bets on the activity of the Solana blockchain. This will also enable on-chain revenue generating businesses like validators or app protocols to hedge against falling activity levels, reducing volatility in their earnings.

What’s Next

• A contract audit is pending from Accretion.

• The user frontend application is being built out.

• The Austrian Blockchain Center is writing a report detailing possible market dynamics and risks for users.

• Analytics dashboards are being created to assist users with decision-making.

We will continue to post here and you can expect more data-driven analysis on the market structure to follow. In the meantime, sign up to our newsletter to be notified of our mainnet launch and follow our Twitter for some more info on how to get involved as an early user.