Is DoubleZero Staked SOL Safe?
Risk Grade: B- (32/100)
DoubleZero Staked SOL is rated as moderate risk — some novel mechanisms, generally well-understood.
Moderate risk — innovative infrastructure approach to liquid staking but limited track record and infrastructure dependency create uncertainty relative to established Solana LSTs
DoubleZero Staked SOL (dzSOL) is a liquid staking token on Solana that differentiates through infrastructure: validators operate on a dedicated high-speed fiber network, enabling better block production and MEV capture for slightly higher yields than competing LSTs. With $1.1B in TVL and 12,200+ holders since its January 2025 launch, dzSOL earns a B- risk grade. The main risks are the protocol's young age (approximately 1 year), its infrastructure dependency on the DoubleZero network, and the standard liquid staking risks of unstaking delays during market stress.
TVL
$1.2B
Mechanisms
5
Interactions
4
Value Grade
D-
Key Risks for DoubleZero Staked SOL Users
dzSOL launched in January 2025 and has not been tested through a bear market or major stress event. Despite rapid growth, the protocol's smart contracts and validator strategies are relatively untested compared to established alternatives like JitoSOL or mSOL.
Your yield premium depends on the DoubleZero fiber network performing well. If the network has outages or competitors match its speed advantage, dzSOL's yield drops to match or fall below competing LSTs, potentially triggering outflows.
Unstaking SOL takes 2-3 days due to Solana's epoch system. During a market crash, you cannot quickly convert dzSOL to SOL, and may face a market discount if you need to sell immediately.
Top Risk Factors
- •dzSOL launched in January 2025, making it approximately one year old. Despite rapid growth to 13.2M SOL staked ($1.1B), the protocol has limited track record through different market conditions (no bear market test, no major stress event). Early-stage liquid staking tokens carry higher smart contract risk than established alternatives.
- •DoubleZero's value proposition is that validators on its high-performance fiber network produce blocks more consistently and capture more MEV, generating higher yields. This infrastructure dependency means dzSOL's yield advantage disappears if the DoubleZero network experiences outages or if competitors match its latency improvements.
- •With 5.4% of Solana's liquid staking market and 13.2M SOL delegated to DoubleZero validators, the concentration creates systemic risk. If DoubleZero validators experience coordinated downtime (network issue, software bug), a significant portion of Solana staking could be disrupted.
Risk Score Breakdown
DoubleZero Staked SOL's highest risk area is Scale Exposure (7/10). Here's how each dimension contributes to the overall 32/100 score:
Read the Full DoubleZero Staked SOL Risk Report
This protocol has 2 collapse scenarios. 1 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
View Full Report →Considering an investment?