Moderate risk — innovative infrastructure approach to liquid staking but limited track record and infrastructure dependency create uncertainty relative to established Solana LSTs
Top Risks
1
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.
2
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.
3
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 Breakdown
Frequently Asked Questions
Is DoubleZero Staked SOL safe to use?
DoubleZero Staked SOL receives a B- risk grade (32/100) from Hindenrank, where lower scores indicate lower risk. 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.
What are the main risks of using DoubleZero Staked SOL?
The key risks identified for DoubleZero Staked SOL are: (1) 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. (2) 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. (3) 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.
What is DoubleZero Staked SOL's risk score breakdown?
DoubleZero Staked SOL scores 32/100 across eight risk dimensions: Mechanism Novelty: 3/15, Interaction Severity: 6/20, Oracle Surface: 2/10, Documentation Gaps: 3/10, Track Record: 3/15, Scale Exposure: 7/10, Regulatory Risk: 3/10, Vitality Risk: 5/10. The highest risk area is Scale Exposure at 7/10.
How does DoubleZero Staked SOL compare to other Liquid Staking protocols?
Among 81 rated Liquid Staking protocols on Hindenrank, DoubleZero Staked SOL ranks #43 by safety (lowest risk score = safest). Its 32/100 risk score and B- grade place it in the middle tier of Liquid Staking protocols.
Has DoubleZero Staked SOL ever been hacked or exploited?
DoubleZero Staked SOL scores 3/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.