Liquid staking derivatives (LSDs) let you stake crypto and keep your tokens liquid for DeFi. We break down the best platforms for Ethereum and Solana — Lido (stETH), EtherFi (eETH), Rocket Pool (rETH), and Marinade (mSOL) — comparing APY, security, TVL, and composability.
When you stake ETH or SOL natively, your tokens get locked up — you can't use them in DeFi, move them, or sell them until you unstake. Liquid staking derivatives (LSDs) solve this: you deposit your tokens with a protocol, it stakes them on your behalf, and you receive a liquid receipt token (like stETH, rETH, eETH, or mSOL) that can be traded, lent, or used as collateral across DeFi while your original stake keeps earning rewards.
The LSD market has exploded past $40 billion in total value locked, making it one of the most important sectors in crypto.1
Lido is the dominant player in liquid staking, with over 9.4 million ETH staked through its protocol.1 Users deposit ETH and receive stETH, which earns staking rewards daily and can be used across virtually every major DeFi protocol — Aave, Curve, MakerDAO, and more.
Why it wins: Lido has the deepest liquidity, widest DeFi integration, and most battle-tested security of any LSD platform. Its DAO governance and multi-sig controls add layers of decentralization, though some critics note Lido's dominance approaches a centralization concern for Ethereum itself.
| Spec | Detail |
|---|---|
| LST Token | stETH |
| APY (recent) | ~3.5–4% ETH |
| Chains | Ethereum, Polygon, Solana, Polkadot, Kusama |
| TVL | ~$30B+ |
| Min Stake | None (any amount) |
EtherFi is the fastest-growing challenger, offering liquid staking through eETH (and its wrapped version weETH). What sets EtherFi apart is its deep integration with EigenLayer for restaking — you can earn both staking rewards and restaking rewards simultaneously, boosting overall yields.
Why it wins: For yield-maximizers, EtherFi's restaking pipeline via EigenLayer adds a second yield layer that Lido doesn't natively offer. The protocol has also pioneered non-custodial node operations and a more transparent validator selection process.
| Spec | Detail |
|---|---|
| LST Token | eETH / weETH |
| APY (recent) | ~4–5%+ (incl. restaking) |
| Chains | Ethereum (EigenLayer) |
| TVL | ~$8B+ |
| Min Stake | None |
Rocket Pool is the premier decentralized alternative to Lido. It's a truly permissionless protocol where anyone can run a node with just 8 ETH (vs. 32 ETH for a solo validator), and stakers receive rETH — a token that appreciates in value relative to ETH over time.
Why it wins: Rocket Pool is the most decentralized LSD on Ethereum. No single entity controls the protocol; it's governed by a DAO and node operators are globally distributed. rETH is also one of the few LSTs that doesn't rebase — it simply grows in value, which some users prefer for tax simplicity.
| Spec | Detail |
|---|---|
| LST Token | rETH |
| APY (recent) | ~3.2–3.8% ETH |
| Chains | Ethereum |
| TVL | ~$4B+ |
| Min Stake | None (rETH) / 8 ETH (node ops) |
Marinade is the leading liquid staking protocol on Solana. Users stake SOL and receive mSOL, which earns staking rewards and can be used across Solana DeFi in platforms like Jupiter, Orca, and Marginfi.
Why it wins: Marinade dominates Solana LSD with the highest TVL, deepest liquidity pools, and the widest DeFi composability on Solana. It also offers a "delayed unstaking" mechanism that lets you unstake instantly via a liquidity pool (with a small fee) or wait for the native unstaking period.
| Spec | Detail |
|---|---|
| LST Token | mSOL |
| APY (recent) | ~7–8% SOL |
| Chains | Solana |
| TVL | ~$1.5B+ |
| Min Stake | 0.01 SOL |
| Feature | Lido (stETH) | EtherFi (eETH) | Rocket Pool (rETH) | Marinade (mSOL) |
|---|---|---|---|---|
| Chain | Ethereum (multi-chain) | Ethereum | Ethereum | Solana |
| APY | ~3.5–4% | ~4–5%+ | ~3.2–3.8% | ~7–8% |
| TVL | $30B+ | $8B+ | $4B+ | $1.5B+ |
| Restaking | ❌ | ✅ (EigenLayer) | ❌ | ❌ |
| Min Stake | None | None | None | 0.01 SOL |
| DeFi Integration | Deepest | Growing | Strong | Deepest on Solana |
Security & Audits: All four platforms have undergone multiple professional security audits (by Trail of Bits, Sigma Prime, Quantstamp, and others). Lido and Rocket Pool have been live for years with no major exploits. EtherFi and Marinade have clean track records since launch.
TVL as a Signal: Total value locked is a useful (if imperfect) proxy for trust and liquidity. Higher TVL means deeper liquidity for your LST, tighter spreads when trading, and more DeFi protocols willing to integrate the token.
DeFi Composability: The real power of LSDs is what you can do with them. stETH is accepted as collateral on Aave, MakerDAO, and Compound. eETH/weETH works with EigenLayer restaking. rETH is integrated across the major DEXes. mSOL is the backbone of Solana DeFi lending.
Liquid staking derivatives carry risks:
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