Moderate risk — innovative infrastructure approach to liquid staking but limited track record and infrastructure dependency create uncertainty relative to established Solana LSTs
Risk Breakdown
Top Risks
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.
Frequently Asked Questions
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Has DoubleZero Staked SOL ever been hacked or exploited?
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