Crypto Newbie / Simulators / Liquid Staking Compare
Liquid Staking Provider Comparison Simulator
Lido (stETH) has 28% of all staked ETH; Rocket Pool (rETH), Frax (sfrxETH), and Coinbase (cbETH) compete for the rest. They have very different yield/fee/decentralization profiles. This simulator runs projected returns for your deposit + holding period across all major providers so you can see which actually pays the most after fees + peg drift.
Your deposit
Provider comparison
| Provider | Gross yield | Fee | Net APR | Peg vs ETH | Decentralization | Final ETH value | vs holding ETH |
|---|---|---|---|---|---|---|---|
| Lido (stETH) | 3.80% | 10.00% | 3.42% | -0.10% | 4/10 | 11.8192 ETH | +1.8192 ETH |
| Rocket Pool (rETH) | 3.80% | 14.00% | 3.27% | +0.00% | 8/10 | 11.7443 ETH | +1.7443 ETH |
| Frax (sfrxETH) | 4.40% | 8.00% | 4.05% | +0.50% | 5/10 | 12.2556 ETH | +2.2556 ETH |
| Coinbase (cbETH) | 3.50% | 25.00% | 2.63% | -0.20% | 2/10 | 11.3605 ETH | +1.3605 ETH |
Winners by category
Best yield
Frax (sfrxETH)
Net APR: 4.05%
Best decentralization
Rocket Pool (rETH)
Score: 8/10
What 'liquid staking' actually means
Solo Ethereum staking requires 32 ETH + 24/7 validator uptime + technical expertise. Liquid staking pools deposits from many users, runs validators on their behalf, and gives users a LIQUID TOKEN (stETH, rETH, etc.) representing their staked ETH. The token: (1) accrues staking rewards (rebases for stETH, exchange rate increases for rETH), (2) is tradeable on DEXs, (3) is usable as DeFi collateral. You can 'unstake' (burn the LST for underlying ETH) but with a queue delay (Lido: 1-5 days, Rocket Pool: similar).
Lido — the dominant choice (with concentration concerns)
Lido is the largest by far — 28% of all staked ETH (~9M ETH / $30B). Net APR ~3.4% after their 10% fee. Pros: most liquid LST market (stETH-ETH AMMs everywhere), almost-1:1 peg, simple UX. Cons: Lido is a SINGLE POINT OF FAILURE for a quarter of Ethereum's security. Their operator set is curated (not permissionless), and there are governance concerns. Ethereum community has discussed protocols' acceptable LST market share — most concur Lido should not exceed 33% (the security threshold for various consensus attacks). Lido has voluntarily slowed growth in response.
Rocket Pool — the decentralized alternative
Rocket Pool uses permissionless node operators — anyone with 8 ETH (or 16 for older bonds) can run a validator. ~4000 operators vs Lido's ~30 curated. Lower TVL (~3% of staked ETH) means slightly worse liquidity for rETH on DEXs, but pretty good still. Net APR ~3.3% after their 14% fee + commission split. Best choice for users who care about Ethereum's long-term decentralization.
Why the simulator shows different 'final ETH value' between providers
Net APR + peg offset combined. Lido has slight discount (~0.1% below ETH); Frax sometimes trades premium. The final value = (deposit × compound growth at net APR) × (1 + peg offset at sell time). For 5-year hold of 10 ETH: Lido at 3.4% net APR with -0.1% peg = 10 × 1.034^5 × 0.999 ≈ 11.81 ETH. Frax at 4.0% net APR with +0.5% peg = 10 × 1.04^5 × 1.005 ≈ 12.23 ETH. Real returns depend on actual peg behavior at exit time.
Frequently asked questions
+Should I use multiple LSTs to diversify?
Yes for medium-large holdings ($50k+). Splitting 60/40 between Lido and Rocket Pool gives you yield + reduces single-provider risk. Some users add Frax for the yield premium. The downside: more positions to manage + slight UX overhead. For < $10k holdings, just pick one — the diversification benefit doesn't outweigh the complexity.
+What happens if my LST provider gets hacked?
Worst case: total loss of staked ETH. Lido has a security module (LDO stakers backstop a small fraction of losses), but hasn't been tested in a major hack. Rocket Pool's design is more decentralized — exploiting it would require compromising many node operators simultaneously. Coinbase cbETH is the most centralized but is a Coinbase product, regulated and insured up to certain amounts. Risk-adjust your provider choice based on this.
+Can I lose money on a peg de-coupling?
Yes briefly, no permanently (usually). stETH dropped to 0.95 ETH during the Three Arrows / Celsius collapse in 2022 because of forced selling. It recovered as the panic ended. As long as withdrawals (which Lido enabled in 2023) work, the peg eventually recovers via arbitrage. If withdrawals were permanently broken, peg would stay broken — but this hasn't happened to any major LST since Shanghai.
+Is restaking (EigenLayer) a different category?
Yes. Liquid staking = base ETH staking yield. Restaking = USE your LST or staked ETH to ALSO secure additional services (AVS) for extra yield. Adds correlated risk (a single bug can slash your stake AND multiple AVS positions). EigenLayer + LRT protocols (etherfi eETH, Renzo ezETH) are a layer ON TOP of LSTs — explore after you understand basic liquid staking.
+Why does Coinbase cbETH have higher fees?
Coinbase positions cbETH as a premium-priced regulated product. They charge 25% of yield vs Lido's 10% or Frax's 8%. The pitch: US regulatory clarity + Coinbase's institutional reputation + easier tax reporting. For US institutional buyers who need a 1099 form, this is worth paying for. For DeFi-native users in unregulated jurisdictions, the higher fee is not worth it — Lido / Rocket Pool offer better economics.