In the world of Ethereum (ETH), staking has become a cornerstone for earning passive income while securing the network. But with the rise of liquid staking protocols, users no longer have to lock up their ETH indefinitely. Instead, they can stake and still use their assets in decentralized finance (DeFi). Two giants in this space are Lido and Rocket Pool. If you’re new to crypto, think of staking like depositing money in a high-yield savings account that helps run the bank (Ethereum, in this case). Liquid staking adds flexibility by giving you a token representing your staked ETH, which you can trade, lend, or use elsewhere.
This article compares Lido and Rocket Pool, breaking down their features, performance, and market positions as of 2025. We’ll explore who dominates ETH staking today, using verified data from reliable sources. Whether you’re a beginner wondering “what is ETH staking?” or an experienced user hunting for the “best liquid staking protocol,” this guide will help you decide.
Understanding ETH Staking and Liquid Staking Basics
Ethereum switched to Proof-of-Stake (PoS) in 2022, allowing users to stake ETH to validate transactions and earn rewards. Traditionally, you needed 32 ETH to run a validator node, and your funds were locked until withdrawal was enabled.
Liquid staking solves that lock-up problem by pooling user assets and issuing a token (e.g. stETH or rETH) that accrues rewards automatically. This token can be used in DeFi for lending, trading, or composability. In 2025, liquid staking protocols account for about 29–31% of all staked ETH.
For more on Ethereum’s staking mechanism, visit the official Ethereum Foundation staking guide.
What Is Lido? The Liquid Staking Leader
Lido Finance (launched 2020) is broadly recognized as the pioneer of Ethereum liquid staking. It enables users to stake any amount and receive stETH, which automatically increases in value as rewards accrue (rebasing). A wrapped version, wstETH, offers compatibility in DeFi ecosystems.
How Lido Works
Deposit ETH: Users send ETH to Lido’s smart contract.
Receive stETH: You get an equivalent amount of stETH, which accrues rewards over time.
Node Operators: On Ethereum’s main module, a curated set of up to approximately 39 operators is used; in addition, Lido employs permissionless modules (CSM/DVT), for a combined base of 400+ unique node operators across networks.
Rewards & Fees: Lido takes 10% of validator rewards (split between operators and DAO).
Learn more at Lido Finance’s official documentation.
Strengths of Lido
Deep liquidity: stETH/wstETH is integrated in many major DeFi protocols (Aave, Curve, Uniswap, etc.).
Mature ecosystem and tooling.
A relatively predictable, fixed-fee model.
Supporting advanced capability like restaking (e.g. via EigenLayer) for extra yield.
Typical Returns (2025)
Lido’s APR (post-fee) is around 2.7%, though this fluctuates based on network conditions.
What Is Rocket Pool? Decentralization First
Rocket Pool (launched 2021) focuses strongly on permissionless access and decentralization. Users stake ETH to receive rETH (a non-rebasing token whose value in ETH increases over time). The minimum for retail staking is 0.01 ETH.
How Rocket Pool Works
Deposit ETH: Any amount (starting at 0.01 ETH) can be staked for rETH.
Slashing Protection: Slashing risks are mitigated by requiring node operators hold RPL collateral; the protocol parameters define limits and coverage.
Node Operators: Anyone can become a node operator with 8 ETH of bonded ETH (LEB8 model) plus RPL collateral. This is significantly lower than 32 ETH needed for solo staking.
Rewards & Fees: Reward mechanics are tied to the network; operator commission for new pools is commonly in the 10–14% range (legacy pools may differ).
Explore more at Rocket Pool’s official website.
Typical Returns (2025)
Rocket Pool’s APY is around 2.45%, though this can vary with network activity and pooling dynamics.
Lido vs Rocket Pool — Head-to-Head Comparisons
| Metric | Lido | Rocket Pool |
|---|---|---|
| Minimum Stake | No protocol minimum (UI may impose small floor) | 0.01 ETH |
| Typical Yield (2025) | ~2.7% APR (after fees) | ~2.45% APY |
| Fee Structure | Fixed 10% of validator rewards | Variable operator commission (commonly 10–14%) |
| Operator Model | Curated + permissionless modules; combined “400+” operators across networks | Fully permissionless: open to any qualified operator with 8 ETH + RPL |
| Market Share | ~24–25% of all staked ETH | ~2–3% (by staked ETH) |
| Best For | Users seeking maximum liquidity and ease | Users prioritizing decentralization and protocol permissionlessness |
Liquidity & Ecosystem Integration
stETH / wstETH see very broad adoption across DeFi. rETH is integrated in many protocols as well (e.g. Aave v3, Balancer), but typically with somewhat less liquidity.
For DeFi protocol integrations, check DeFi Llama’s liquid staking category.
Decentralization & Security
Rocket Pool scores higher on the permissionless/decentralized design front: anyone can become a validator operator (within requirements). Lido’s main module is curated, though its permissionless modules help reduce centralization pressure. Both are noncustodial.
Risk Considerations
Lido’s potential risk: concentration of influence or governance control as it grows.
Rocket Pool’s risks: variability among operators, and slashing protection is not absolute — collateral mechanisms cover some, but not all, cases.
Both are subject to smart contract risk; both maintain audits and bug-bounty programs. Review security audits at Lido’s security page and Rocket Pool’s audits.
Who’s on Top in 2025?
As of late 2025, Lido remains the dominant force in liquid ETH staking by size and integration. Its share, however, has declined to approximately 24–25%, reflecting increased competition and maturation of the field. Rocket Pool continues to grow as the preeminent permissionless alternative, though from a smaller base (around 2–3%). The broader Ethereum staking market has approximately 35.7 million ETH staked in total.
Yield levels across the board have cooled relative to earlier cycles, with 2–3% broadly reflecting real returns after fees and network activity. High double-digit percentages belong to historical outlier periods, not sustainable norms.
Support for restaking (e.g. via EigenLayer) has expanded — both stETH and rETH feature among supported assets — opening additional yield layers (and risks).
Verdict: Which Should You Choose?
Lido: For most users — especially newcomers — it remains the default. Deep liquidity, broad DeFi integrations, and a simple, stable fee structure make it low friction.
Rocket Pool: Best suited for those who care deeply about decentralization, permissionless access, and protocol sovereignty — and who can accept a bit more complexity and slightly lower liquidity.
You don’t have to pick one forever — diversification between protocols is a valid strategy. But always DYOR (Do Your Own Research), use trusted wallets, watch for protocol updates, and understand that staking is as much about network health as it is about yield.
For the latest staking statistics and comparisons, visit Dune Analytics’ Ethereum staking dashboard or Rated Network.